Mississippi Rental Property

Is very good right now.  I just responded to someone's posting and thought it would be good to share my experience.  I did more due diligence I think than anyone because that's the way I am...and found a builder in Hancock Cty, MS and we built 2 modular homes.  I really liked the area after I visited.  The modular home took 43 days from the time I closed.  My builder is a connected guy in the area and he got me renters for my house before they were built.  With the financing industry really bad, the recovery effort in building from an investor standpoint is very slow.  I found that the demand for housing is something else.  I literally had my tenants thanking me for providing housing for them.  My one tenant(s) is a husband/wife who just got hired at the local hospital.  My other tenant is a city employee.  I am getting $1250 per month, but offered one month free.  I'm getting positive cash flow.  I invested $14,500 which I think was 10% plus closing costs and my monthly payment is $1100 per month which includes my tax/insurance bill.  I also was informed of the go zone tax bonus, which is nice too if I can qualify for it.  So...if anyone's interested I can hook you up with my builder.  My total cost was $127,000 for the house.  It's about 2 miles from a casino and the beaches.

I do a lot of real estate, stocks,, and bonds...this is currently the best return for me with the sh!tty market we are in

I'd be interested in more information.

Well the price of the house is $127,000 and it's hard to find a bank that will do this kind of financing.  I know a lender in Florida that will do it and also Wachovia will do it on a case by case scenario.  I would put down 10% and no more.  More is not necessary.  You will be financing with a construction to permanent loan meaning, you will close, then the builder completes the house which only takes 45 days he says.  Mine took 43 so he was pretty much right on.  You pay nothing during construction and assume the end-loan at completion which usually comes with a rate of 7.5% which is very good this day in age considering it's an investment purchase.  Ask him to find a tenant for you during construction so you have one locked in by time you get the certificate of occupancy.  He will likely be able to as he did with me.  The market is going to go up without a doubt.  If you want to see pictures go to the following links: These are my 2 houses.

 

You will see that one of my houses are lifted or elevated.  This costs about $10,000 more but I liked it.  A lot of people locally like it also.  Look at it this way, my house would have not been affected by floodwaters during Katrina at that height.  If you want my guys' number, let me know and I'll have you in touch.  I don't want to post his number here out of due respect to my builder in case their's any freaks on this forum!! 

 

wsc:

 

It is the initial surge and waves that is powerful.  the flooding about a mile away from the breaking waves isn't that powerful.  it just kind of fills up.  those stilts are very common all over shorelines and they definitely hold up.  now if waves are breaking straight into them, GOODBYE, but if you are 1/2 mile away or more, it just kind of fills up with water. 

 

I could be wrong though

What kind of insurance do you have on your house? I thought getting insurance on a house in some of those areas was a problem?

Those stilts that hold up the house are 10x10 beams embedded in a 4 ft. hole filled with concrete.  Anything south of the interstate in LA, MS, or AL were flooded to some extent.   My builder said that the building code elevation allows you to build on slab in our subdivision.  FEMA suggests elevating the home 4 ft.  We elevated mine 7 ft. for 2 reasons.  You get credit for covered parking on a retail standpoint...(makes sense)..My tenants use it for a 1 car area and then a BBQ area which is nice for when it's raining.  Secondly, in this subdivision Katrina's surge came up 3 feet.  Never got a wave surge or tidal wave...The waters came up then rescinded...Being that the home is stamped with a 165 mph wind rating and there was no tidal wave, mine SHOULD have been ok in the hurricane.  We'll never know though.  With all the growth down there and the new insurance policies, I will take my chances of not having another Katrina. 

 

Insurance is $2500 per year, coming down by 33% in December.  New reform was signed last week.