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Updated about 11 years ago on . Most recent reply

New Buy and Hold Investor soon to be in MS
Hello BP,
As modus operandi with my Facebook account, I have been stalking BP for a few weeks and decided to introduce myself and stop being the resident creeper, lol.
In a few months I will be moving to Meridian, MS from Virginia. I am active duty military and have new orders to the area. I have decided that the buy and hold strategy is more to my liking in the real estate world. The game plan is this: Buy a duplex/triplex using an FHA loan and living in it until I move again in three years time. Sounds so simple.... The duplex has yet to be found, I have an agent friend scouting the area for me already though. However, I have located a potential second investment property I could purchase *after finding my primary residence for me and my family*
Deal looks like this:
6 2br/ 1.5bath Unit w/ Brick Veneer Two-Story
Asking price: 171,000
Income: 2300/month
NOI:13,800
CAP: 8%
Remarks: Roof 6 yrs old, all units occupied. I would offer 140,000, building on market for 320+ days. Rent could be increased to 2550 IMO with a little elbow grease.
My worries are that this city is pretty much entirely a warzone. Crime rate is one of the highest in the nation, 6% for safety. Most if not all neighborhoods appear to be D+. I've even seen "move-in-ready" houses selling for less than 15k!!
Most Popular Reply

Welcome to BP and getting out of Lurker mode
If the entire city is a war zone why are you considering this deal? I presume this is in a nicer area of the city. The question is not whether the city is down right now but what direction is it headed.
Is population growing or shrinking? Are jobs coming or going? Does the area rely on the military and will that continue. Jobs drive population and population drives values. Good luck - Ned