All Forum Posts by: Warren Helmer

Hello @Carlos Altamirano and @Michael Le. My wife and I will be attending this in March. Can you let us know your experience with this, and do you have any advice for those of us attending.

I bought a great rental property in Brandon that has a 9 inch "heave". Before buying it, I had my inspector do his thing = $350, and then 2 different foundation companies came and told me what was wrong and what it would cost to fix. Then I had my plumber look at all of the pipes and give his opinion, and then the contractor I use came and gave his opinion. Lastly, I had our property manager come with comps to see the potential cash flow. The home inspection was the only thing that cost $. My plumber, AC guy, contractor, and property manager always give me their opinions for free because I use them and only them.

The 2 foundation companies wanted between $3000 and $4500 to level the house, but the foundation was in tact, so we decided to do nothing. Instead, I put that money into gutters to keep the water away from the house. All of the professionals believe that since the house is over 30 years old, and water is being diverted away from it, it will stay like it is and not move.

So to answer your question more specifically, I do buy houses that have "problems", but it depends on how old the house is, what the problems are, and the current and future costs. But I've looked at hundreds (if not thousands) of properties in Ridgeland, Brandon, Clinton, Madison, Pearl, etc., and have figured out what I and my wife are willing to tolerate. We have been able to find some records of foundation repair history on houses in Madison county by going to the Madison County Property page. This was REALLY helpful when we came across a beautiful house in Madison Mississippi for under $80k. The previous 2 owners documented their nightmares with the court, so we weren't about to touch it. That house needed to be demolished. If there are clear splits in the concrete that I can stick my fist into, or the house is going in two or more different directions, I walk. If the entire house has shifted a little, and the roof looks good, then I begin finding out all of the information I can, and move quickly.

I have SO much appreciation for this thread. Thank you Donald Stevens for sharing. This has added to my checklist of "dos and don'ts" when renting out properties. Thanks to everyone for contributing. This has been so helpful.

@Donald Stevens Jr.

I took your advice about Craigslist, and I didn't get much sleep. You helped me. I had completely forgot about Craigslist. You are right though, there's a lot out there. I was surprised at the number of "investor deals" that were there, and not on Realtor.com. 

@Susan Maneck

Last night I stayed up way too late viewing Craigslist looking for deals. I noticed that there's a lot in Jackson. Do you ever look at Craigslist, or do you have a set method you use? You focus on South Jackson, but what are your opinions on North Jackson? One last question: Taxes??? Does Hinds county jack up the rate after you buy the house?

@Brian Dance

We are dealing with expansive clay in central Mississippi, and the foundation repair companies, which are a dime a dozen, do not fix the problem. They come to your house, dig a bunch of holes, attach pilings to your house, and take your money. You can buy warranties, but we haven't had much luck with that. I have asked many local engineers about this, and they all have the same advice: "Move". But in this area, you're just trading one foundation problem for another.

Since you've dealt with this clay, which is similar to the stuff in Texas, do you have any suggestions?

One of the most expensive cities in Mississippi is Madison. The houses sell for $100 sq ft. There are houses there now with foundation issues that can be bought for much less. If I knew of a solution, then I could start buying and repairing these houses. 

What opinions do you have, if any, about buying houses in a city, county, area, where ALL of the clay is expansive?

Hey Dawn

Great to see you on BiggerPockets. My wife and I are looking in the Brandon area for buy and hold deals, and we too are trying to get deeper into real estate. Are you looking to manage rental properties, flip, wholesale??? 

Brandon seem to be a great market for buy and hold deals right now. We have made several offers on houses and continue to make more.

I hope you find success in Jackson and the surrounding area. Let me know if I might be able to answer any questions. I'm learning more every day.

@Bryan 

@Bryan Coughlin

My realtor told me that I should start looking in Hattiesburg because the market is hot and there's a lot of opportunity. Since you know more about that area, if you start looking to create some equity, I am definitely interested if you start looking for others to join you. I am wanting to take the leap into multi-family. From what I have been told, it's smarter to do your first big deal with someone who has experience. But the few people I have reached out to just want me to throw money at them, not ask questions, and watch and wait. That's not going to happen. I need to jump in, get dirty, find money, and make it happen.

I know how hard work pays off. I ran cross country and track at Mississippi State. It was always early morning runs, eat, study, go to physical therapy, go to class, eat, go to practice, hit the weight room, go back to physical therapy, shower, eat, study sleep, repeat. I made a habit early in life to work hard and never stop learning. I just wish that I would've focused on real estate earlier. I'm here now, constantly learning and working hard. I have an "abundance mentality" and a strong work ethic. I am happy to share what I know if you ever have any questions.

@ Marcus 

@Marcus Spurlock That's awesome! and so inspiring. I know my problem is that I have become comfortable with SFH, and I need to step out. Every time I read a post like this, I do something that gets me closer to taking on a bigger project. You accomplish more in "days" than I do in months. AWESOME! I'm joining this race with you. Thanks for the inspiration.

Hello@Bryan Coughlin

I must begin by saying "Hail State!" I married a Southern Miss alum, and we are active in real estate with buy and hold SFHs. I am also reading everything that I can about MFH and want to take that leap.

I encourage you to jump in now and get started. I wish that I would've started 20 years ago, but that doesn't slow me down now. There are parts of Mobile AL that I am very familiar with, and have been watching that market for 4 years now. I also know a good bit about the surrounding areas of Jackson, MS. If you ever have questions about these areas, please feel free to ask. I look forward to reading about your success.