Should I Buy in Jackson MS?

[Matthew White]

Good Day!

So I am currently analyzing a deal on a Duplex in Jackson MS. I may be able to acquire and rehab this complete gutjob for close to $40k (still waiting on a full scope of work from contractor). I would be acquiring and rehabbing with all cash. Once rehabbed, I believe I can reasonable expect approximately $600 per side. The property is located close to the large hospital and university, however itis still a rough area.

My question is this. I don't believe this is an appreciation play by any means, it would strictly be for cash flow. My biggest worry is that I won't be able to refinance once it is stabilized to pull my cash out.

Should I proceed with this "deal"? By the numbers, it should cash flow well. But I worry about the refi.

Thoughts?

Thank you in advance.

[Jay Hinrichs]

Originally posted by @Matthew White:

@Julian Lyons, sorry for the delay.  I am still conducting due diligence.

I spoke to some family that are police officers in the area and they informed me that this property is in one of the roughest parts of town.  Currently, there a ton of vacant properties in the area and properties are in terrible shape.

So I do not believe that I will be able to get the appraisal high enough to BRRRR my cash back out. If I was confident that I could get the appraisal, I would probably do it and make it a play to re-stabilize the area and buy up as many as I could and repeat. I just don't want to leave my cash in the property because of the risk of the area.

I hope that makes sense.

Sounds like West Jackson.. one investor is not going to turn the area around or stabilize anything. you will lose all your money you take on a project like that.. just sayin.