Why Invest In Mississippi? http://www.mississippibelieveit.com/
Three quick reasons. The huge number of available foreclosures, the amazing tax incentives in the aftermath of Hurricane Katrina, and the huge opportunities brought on by the sub-prime meltdown.
In addition, it is because the numbers work. At Streetvestor we focus on the Capitol City of Jackson, the state's largest city and the surrounding metro area. The rents relative to the value of the homes are very high compared to other areas of the country.
The population of the Jackson metro area is over 500,000 people, about 195,457 live in Jackson proper, and the balance in the suburbs.
The Jackson median single-family home price is $80,761. The state median is $71,067. This means Jackson is one of the least expensive metropolitan housing areas in the nation. Property taxes are also relatively low. The average age of homes in Jackson is 35, compared to the national average of 38. Jackson is a strong rental market, 42% of the homes are rentals.
According to the National Association of Realtors, Jackson saw single-family home appreciation of 8.9% year-over- year at the end of Q3 2006 (compared to -1.2% for the rest of the US), placing it in the top 15th percentile of metro areas in the U.S. Jackson is ranked as the 9th most undervalued metro region in the U.S., placing it in the top 3% out of 317 metro areas, according to the March 2007 Housing Valuation Report by National City Corporation.
In 2006, Jackson was named of America's Top 30 Livable Communities by Partners for Livable Communities.
Despite the low housing prices, rents, relatively speaking, are much higher. According to HUD statistics, the 50th percentile rent for a 3-bedroom dwelling in 2006 was $826 per month. This makes Jackson one of the best areas in the country for positive cash flowing rental properties.
The economics in Jackson are clearly favorable for real estate investments. The key to investing in Jackson lies in careful selection of the investment company, working with that company to select homes in the right locations and neighborhoods, and carefully selecting tenants and property managers.
At Streetvestor LLC, we are experts in the area, we perform the due diligence on behalf of our investors to get the right homes with the right rehab and the right tenants to earn safer, superior returns on investment. I have personally owned over 75 rentals in this market and we have done over 400 deals in the Jackson Metro Area, working with investors from all across America, providing turnkey keeper rental properties.
Out of Disaster Comes Opportunity!
Hurricane Katrina and the Sub Prime Lending Meltdown -
On August 29, 2005, the states of Mississippi, Louisiana, and Alabama suffered widespread damage as a result of Hurricane Katrina, a natural disaster of unprecedented proportion.
The "Clarion Ledger", the state's newspaper, reported that 70,000 homes were completely destroyed and 65,000 homes had "significant damage" just in the lower six counties that make up the state's Coast region. These loses are staggering, especially when you consider the maximum number of homes ever built in this region in one year is 2,800.
On December 21, 2005 President Bush signed into law the Gulf Opportunity Act of 2005. This law commonly referred to as the "Go Zone" provides unprecedented economic and tax benefits to those areas hit hardest in Mississippi, Louisiana, and Alabama. The legislation provides HUGE incentives to investors building or buying new construction in these areas.
Katrina devastated the coastal areas of Mississippi, causing widespread wind and water damage related to the storm surge. Most of the southern half of the state was affected by Katrina, with the damage lessening farther north. Jackson, located 150 miles inland, suffered relatively minor damage compared to the coastal areas.
Manyy people displaced by Katrina moved to Jackson, further driving up home prices and rents.
Despite suffering only moderate damage, Hinds and Rankin counties (the Jackson metro area) were declared Gulf Opportunity Zone ("GO Zone") counties, meaning that the federal government has offered special tax incentives, the most attractive to real estate investors being "50% bonus depreciation", to investors who are helping to rebuild the areas affected by Katrina. Go to www.browndogproperties.com and click on Go Zone, to order your special report dicussing opportunities in the Go Zone.
Sub Prime Lending/Foreclosures
The Good Old Days for Buying Investment Property Are Now!!
According to the Friday, June 15, 2007 issue of USA Today (click on link), http://www.usatoday.com/money/economy/housing/2007-06-14-subprime-foreclosures_N.htm, Mississippi leads the nation in sub prime adjustable rate mortgage in default.
This means that there are HUGE buying opportunities here in this market. Foreclosures and pre-foreclosures are plentiful.
When you couple the strong demand for rental property and the relative high rents, with the ability to buy at well below market value, you have the perfect storm of real estate investing.
At Brown Dog, we offer the property, the financing, the rehab, the property management and the relationships you can trust.
Contact me today about investing in Mississippi!
Caleb Dismuke
601-502-7040
middleman@browndogproperties.com
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