All Forum Posts by: Susan Maneck

I use Wells Fargo for most of my investment properties as they are both in California and Mississippi.

My advice? Look first at repos. If you are not someone who can fix up a house on your own I would look for a HUD house that is "insured." That means it qualifies for an FHA loan, not that you are going to get one. That usually indicates it is in fairly decent condition. Also, check out the properties that are insured with an escrow. That means it needs some repairs, but they give you the estimated cost of those repairs and itemize them for you. I think HUD homes are a better place for a newbie to start because they give you more information about the condition of the property than does Fannie Mae or Freddie Mac.

• I've been living in Mississippi for the last fifteen years but in my heart I'm still a California girl. I now own eight houses altogether in Mississippi but if I sold them all I couldn't buy one in California. However, I just had an offer accepted to buy a 2 bdrm 1 ba. condo in South Lake Tahoe for 110K with $190 HOA fee. I'll likely rent it short term, use it during the summer, then move in when I'm ready to retire (I'm 60 now.) Yes, I could buy three houses in Jackson, MS for that price, but Lake Tahoe is Lake Tahoe and I'm thrilled to find something affordable here.

When I bought a house from a friend, I just used Luckett Land Title which is on Lakeland Circle in Brandon. They gave me the forms for the contract and they will hold your earnest money. ($500 should be fine for house this cheap.) A real estate agent would cost you more money and the title company really does all the work. Another alternative is an attorney. I'd recommend Stephen Younger. His office is towards the river off of Fortification. 

Tamara, I'm a California girl which is as far from Jackson, MS as you can get. But that is part of why I find the prices of real estate here so amazing. Trey, my mother has helped me on some of my investments and I am 60 years old, so don't be afraid to ask. If it looks like a good investment they'll go for it and in your case this is precisely what your father wants you to do. One of the reasons I got into this in the first place is my foster sister lost both her job and her home to the recession and was forced into bankruptcy. She was living in Lake Tahoe at the time and had to move to a small apartment in Carson City, Nevada. Well, Nevada was one of the hardest hit areas during the recession. So I started to look at properties there. I found a manufactured home (over 1400 square feet) with a two car garage there for 65K. My mother was worried sick about my sister and her husband, so I persuaded her to establish a self-directed IRA. She then took part of that money and used to to fund a mortgage for my sister (warning: were there any blood relation or official adoption this would be a prohibited transaction.) The other part was used to buy a house in Jackson which I manage for her. She paid 15K for the second house and it rents for over $740 a month.

And btw, I'm now preparing for my eventual return to California. I just had an offer accepted on a condo in South Lake Tahoe. It's 110K and I can cover my expenses by renting it out until I'm ready for the big move. 

Trey, if I were you I would concentrate on investments there in Jackson right now. Texas is way overpriced, IMO. While the foreclosure rate is very low in the rest of the country it is still 10% in Mississippi which keeps property values ridiculously low for investors and rents here are high! You might consider transferring to JSU so you can manage any properties you might buy. (Of course as a JSU prof., I'm prejudiced.) There are plenty of JSU prof. who invest in real estate that would be happy to give an eager young man advice. If your father has money you might go together on a property. I would recommend starting out with a 30K property that doesn't need much repairs either in Jackson south of Mcdowell or on the north side. Properties on the north side will cost more especially where the high school is Murrah (best high school in town) but you can charge a lot more in rent. A house that rents for $800 on the south side will go for $1100 where  students go to Murrah.  Look carefully for any sign of foundation problems (cracks in bricks, walls, etc. doors that don't close right.) We have yazoo clay here which is really bad for foundations. I have picked up 3 bdrm 2 ba houses with two-car garages in the 30-35K  price range. I just rented one Section 8 for $868 a month. Another alternative would be to buy a duplex and live in one unit, renting out the other. Those shouldn't cost much more and they are a great way to get started. But again, check out the foundation. The three things you want no problems with are roofs, mold and foundations. 

One thing I might mention,  if you work for Jackson State and buy a house you intend to live in that part of town they will pay you 3K towards your down.

Understand that the "zoo area" is about the worst part of town. I won't buy a house in that part of town, because I can get houses in South Jackson for the same price in somewhat better neighborhoods. You mention it needs a new roof. Does it have any active leaks? If it does I would walk away because it likely has mold as well. In any case, I wouldn't pay more than 15K-20K for a house in that area. 

Congrats. I've been living in Mississippi for the last fifteen years, although I was born and raised in California. I just plunged into the California real estate market myself today by making an offer on a condo in Lake Tahoe. My mother lives there and was hoping I'd retire here. As prices started to soar to over $300 a square foot I about gave up. I mean, I'm used to paying $25 a square foot for houses here in Jackson! But I found this condo for a little over 100K and if they accept my offer the rent will cover the mortgage until I'm ready to move in. When you're used to Mississippi, California real estate is pretty scary. 

Excellent! I live in Mississippi but I attended UCSC as an undergraduate. Would love to return there, but with my 8 houses here, if sold them all I still couldn't afford Santa Cruz!