Yes, many are hitting the market in 2024 and more in 2025. You can buy the property for the appraised value and not pay a penny for the furnishings. Some sellers indicate that they will charge for furnishings but most will give them to you for full price offers.
This is a great way to jump in to vacation rentals. Also, ask them if they will sell you their LLC which may have been used to set the property up on VRBO and ABB.
Every real estate agent (their broker) evaluates what they require to provide services connected to listing a property for sale. As with anything else, if you require goods or services you must pay a fair cost for them. Real estate agents are just like doctors, lawyers, bakers etc. They determine what their value is and ask that you compensate them for that value.
Some agents may have decided that they require X% or X$ for each property they help to sell. In that sense they are free to set a “fixed” rate and communicate that rate to all of their clients. At the same time, they have the ability to negotiate if they feel the effort to sell your house justifies a rate lower than they have communicated at the start of the discussion.
It’s important to note, real estate agents and brokers can not and do not collude to fix prices. Some people believe that a commission of X% is standard and they would be wrong to believe that. If two agents are charging the same amount it’s probably because two gas stations located adjacent to each other charge the same price. A result of competition.
Yes, real estate agents in the United States must have buyers they represent sign a contract for representation. The contract does not require you buy a house. It does require you to use the agent you have chosen to represent you for the time period listed in the agreement. Also, the agreement may require you to compensate your real estate agent for your efforts at closing.
These actions are the result of a settlement which was brought against the real estate industry and supported by the U.S. Justice Department. Your agent will provide you with more information on this after August 17, 2024
Great question. Many people are trying to leave crowded and expensive areas. if everyone goes to TX and FL to get some warm air, lower taxes than others will follow. In the end you may find yourself in the same situation, too many people and higher costs.
The Mississippi Gulf Coast is a great place to live, work, retire or invest. Our taxes are favorable compared to TX (very high property tax) and FL (slightly higher than MS). While those states have zero state income tax, MS has zero state income tax on ALL forms of retirement income including 401k. Depending on your situation, taxes are similar. So no reason to move to TX or FL for a major benefit on taxes.
The bottom line is that real estate prices while low in TX and FL are even lower along the Mississippi Gulf Coast. You can actually afford to buy a home within a three minute walking distance of the beach for less than $350k. You might even get a view of the Gulf for that price. You can still buy a condo on the beach for less than $125k.
If you want to follow the herd to TX and FL where you will spend more time in traffic, be our guest and buy there. If you want a great quality of life that is affordable and you are not living in a densely populated area, consider where we decided to live, the Missippi Gulf Coast. Contact us or sign up for our site and review your options.
Short term rentals have been done under the radar for years. When various internet services began to offer properties in typically residential neighborhoods, it caused cities to look at their ordinances. Most actually prohibit short term/vacation rentals, generally those shorter than 3-6 months.
Some communities are permitting by ordinance certain geographical areas or properties zoned for multi-family or hotels to rent on a daily or longer basis. Do not automatically assume you can do this with your rental. Actually if your rental is in a development the association and/or the city may prohibit it. Some that do require permits and fees.
Visit our strategic partner KEYLADDER and contact KEYLADDER if you are interested in acquiring a vacation rental property. Check out Christies Gulf Beach Rentals if you are interested in staying at one to determine if you have an interest in acquiring your own.
This is called “Passive Investing”. Many people have full time jobs and want to increase their wealth through investing in residential rental property. This can be done with almost zero effort. Professionals can select a property that meets your goals and manage it. Regular rent deposits into your account and a once per year discussion with a CPA is all that is about all that is required.
View our First Time Investor page and learn more about our program. Click here.
The Dow Industrial Average reported a loss of 3.48% (includes dividends) for 2017. The DOW reported a gain of 17% in 2016. The S&P index reported a 3% gain for 2018.
Our example investment property which is just an example, not selected to be a high or low yield property, indicates a five year return on investment of 42.8%.
It appears that at least with the sample property, investing in residential rental real estate is beating the stock market’s performance.
This is called a 1031 exchange. There are rules of course and you need to use the services of a company that is permitted to be the intermediary. Basically, you sell a property and have the proceeds transferred to the escrow account of the 1031 specialist.
You have 45 days to nominate a property and 180 days to acquire the property and complete the exchange. The 180 days includes the 45 days. This is all done without paying taxes on the income earned on the first property. It’s a way to keep moving the money forward until one day you sell a property and pay taxes.
You can take a loan against the property that you are buying, this is how investors cover extraneous costs. This is not taxable because it is a loan. The loan must be repaid however.
Yes. There is a mechanism available to fund the purchase of investment property with funds from an IRA. You can not use a 401k program without moving some or all of the funds to a roll over account. You can roll over any IRA to a Self Directed IRA for the purpose of buying investment property.
There are some rules of course but they are not onerous. Please read more about this in my blog article in the Property Investment tab on the main menu. Click here for the blog article about this topic.
The later the down payment, the lower the payment. Private mortgage insurance may be required for loans with less than a 20% down payment. This does not apply to VA loans and some other loans.
Your interest rate will be based upon your score. The higher the score the lower the rate. If you have good credit e.g. above 700 and you can obtain a loan without PMI then afford the payment, you may want to put down the minimum. Why?
Your interest rate will probably be below 6%. There are investments that will pay that and more. For example, Real Estate Investment Trusts that can pay over 10% in dividends. There are two basic reasons for putting down less:
Not everyone can make the payment and put money into investments. Not everyone can have the discipline not to spend the invested money for non-emergency items. If you do have the discipline than you will be earning the spread between your mortgage interest payment e.g. 6% and perhaps 10% on your investment which in the example is 4%. This plus subsequent investments can help start a retirement fund.
Our site was created to help our clients find and then buy the home they desire. It’s also created to help clients sell their homes and many who do sell their homes require financial assistance to buy their next home. I have included a document provided to me by Brian Logan from CMG Financial that will serve as a guide to the many types of programs available.
Of course not everyone will quality for every program but Brian assures me that if you want to buy a home and you have issues e.g. less than stellar credit, new job etc., that he probably has a program that will help you.
In fairness to other mortgage providers, Brian is not the only provider of financial services, he however did provide this information. It’s your decision who you want to work with to secure a loan for your new home.
Brian Logan
Loan Officer
NMLS#379959/Branch NMLS#1594850
Cell : (228) 669-3058
blogan@cmgfi.com
Typical closing costs for buying a home on the Mississippi Gulf Coast can include depending on the purchase/sale, the following:
Please read my article about closing costs that explains what they are and who pays and receives the funds. Even with a zero down payment loan there are closing costs some of which may be folded into the loan. You will receive a closing cost estimate before closing. Feel free to ask about the costs, some may be optional.
Yes, some areas qualify for USDA loans. You should visit the USDA website for complete details for the program and use their site to determine if your income qualifies you. USDA loans are a program provided to rural communities and the primary feature is a zero down payment loan.
Absolutely, in every Mississippi Gulf Coast city there is at least one Mardi Gras parade and many other activities. Mardi Gras has a long tradition in the area. People decorate their homes and themselves during the season. You can find the famous “King Cake” at various retailers. Activities end on Fat Tuesday the day before Ash Wednesday. Consult the various city web sites for information.
No, many homes and most in new developments are located in what is referred to by FEMA as an X zone. X zones typically do not flood but may have in the past e.g. every one hundred years. Homes in AE which is a transition area could flood. AE homes will require flood insurance by lenders.
You need to ask to see the Elevation Certificate which will tell you and the lender if flood insurance is required.
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