All Forum Posts by: Susan Maneck

Wow, you are more gutsy than I am! Did you take care of the mold before you moved into the house? 

Ditto that the person the tax bill goes to doesn't mean that much. It takes Hinds County a full year to update their records. However, I would check the landroll for your country as Jay suggests and see who is the owner of record and if the pay. If it becomes delinquent you might consider paying it so you *can* get title to the property.  

Don't know but in Mississippi a real estate attorney can also handle your close. Doesn't have to be a title company. 

I often forgive the late fee if they tell me ahead of time that the rent will be a few days late and which date they will have it. If they wait until I show up at their door, they're too late. 

Since I partner with my mother on a couple of properties and she lives in Lake Tahoe, we opened up a joint checking account with Wells Fargo which helps a lot with the transfer of monies whether for purchase, repairs or rents. My mother manages my property in Tahoe and I manage her property in Jackson. The arrangement works great. 

if your family is willing to help you manage that property I'd go for it! Have your sister help you choose the property because she will have a better idea as to the property values, neighborhoods, etc. Consider Section 8 tenants as it will be less hassle collecting the rent. As for property managers I see their houses sit there vacant for months and I don't understand it. If one of my houses sits vacant that more than a month it is because I'm doing some major repairs. It is very rare that I have to advertise a rental. As soon as they see the last tenant move out and workmen over there, prospective tenants are at my doorstep. I really find it hard to understand why there are any vacant houses at all in Jackson.  

My advice: Let your sister manage your property and your brother-in-law do the repairs. I'm a JSU history professor, close to retirement, who only started investing in 2011. I now manage eight rentals in Jackson. And no, I didn't invest that much. Also, consider opening an account with Wells Fargo because, despite their recent problems, they are one of the few banks that operate in Nevada and Mississippi. My strategy has been to buy a house for cash (my first one was 15K and I went in with my mother.) Rehabbed it (cost more than anticipated, about 20K.) It then rented for $850. After a year we got a HELOC from Wells Fargo for 35K, paid off the credit cards. Had enough money to help my son buy his first house, a 3bdrm 1ba house for 23K. Not yet 30, he now owns three houses, including his principle residence (which is no longer that first house.) Wells Fargo is one of the few banks that gives HELOCs on rentals, another reason I use them. Closing costs are next to nothing and I keep the interest rates low by getting teaser rates, paying it off when the teaser rate expires, then getting another teaser rate. Since I buy houses in the 30-35K range conventional mortgages would be hard to get anyhow.

It all depends on your credit ratio. All your loans including payment on the two properties you want to purchase should not be more than 41% of your income.  Are you planning to move back home? Rents are excellent in Mississippi relative to home prices, in fact I think it is the best in the nation, however, managing rentals is labor intensive. I don't think it can be profitably done long-distance unless you have relatives there to help. 

Surely the schools in Mobile aren't any worse than the ones in Jackson! 

My son buys properties in North Jackson and using conventional financing. A house that rents for $800 in South Jackson rents for $1200 in North Jackson, but the house will cost two or three times as much. It works if the house is leveraged, but not if you are paying cash like I often do. 

I might add that I live in the same neighborhood where I own most of my rentals. 

 Yes, although I wouldn't call them turn-key. I usually put about 5K worth of work into them before I rent. I have reputation for having nice houses and want to keep it.