In this episode, Jason Hartman talks to a local market specialist in the Jackson, Mississippi area. They discuss details of Jackson’s regulatory environment and landlord friendliness, exceptional RV ratios, and the target tenants of Jackson and their employers. The local market specialist also shares typical house prices, the cost to rent, and what is included in a rehab. They also classify the properties based on the cost to buy, building type, and school district.
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Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution.
Jason Hartman 1:03
For real estate investors, today we are going to do a market profile on Jackson, Mississippi. This is a market that we have been in, rather, I’ll say inconsistently, but we have been in it for many, many years overall. And we’ve got some good properties here it looks like and we just want to share with you a little market profile since we’ve not talked about this market in quite a while and talk about some of the properties and so forth. So let’s go ahead and dive in. And why don’t you give us a market overview on Jackson, what’s going on there in the real estate market nowadays?
Local Market Specialist 1:36
Jackson, Mississippi is so exciting. It’s the capital city. I want to tell you a little bit about Jackson. It’s just booming, and it’s the capital city. We’re three hours south of Memphis and three hours north of New Orleans immobile and it makes us right in the center of opportunity. We have a lot of teaching hospitals and we’re our hospital here is known for its first training Plan x first lung transplant. And for small city, these are just such a good opportunities and jobs to have these hospitals. We have three other hospitals in Jackson. We have a Nissan plant with 30 vendors that support that Nissan plant, large insurance space. If you want to work you can work in Jackson is a great place to live. It’s also written up this month in the national tax information that $100 in Mississippi will go further than any other state in the US. So that’s really exciting. Jackson also add us to go on and about Jackson, we have great weather here. We’re just two cold months and two hot months. So investment property is just a fantastic purchase. We have we stay under the radar because we’re a smaller city. So our prices of investment properties are low but our rents are high. So we’re considered a landlord a dream good.
Jason Hartman 2:57
So when in Jackson, I mean in terms of The city population itself, it’s just approaching about 175,000 or so. And then the urban area is 351,000. And what’s considered the metro area 576,000. So, you know, not a huge city by any means, but decent size, so that you have enough resources and so forth in terms of that overall metro area. But tell me, did you ever have the hedge funds and institutional investors, the private equity firms and so forth in their you know, gobbling up real estate or did they sort of miss your market as being an under the radar market?
Local Market Specialist 3:37
Well, we do have some hedge funds here and I have worked with some hedge funds, but I Jackson properties are just we do stay under that radar. And that’s great because I kind of kind of keep it quiet because we enjoy buying ourselves here. So it’s just an unbelievable market here to be able to buy and get a great return on your investment. Yeah, fantastic.
Jason Hartman 3:56
And in terms of the landlord friendly Since you’re in the property management business, and by the way, how many doors or units do you have under management?
Local Market Specialist 4:06
We have several hundred doors under management right now, what do
Jason Hartman 4:10
you find in terms of the regulatory climate? You know, maybe you can speak to how it is if God forbid you have to evict a tenant, because every once in a while, we’ve all got to do that as a landlord. What What is it like there? Is it? Is it difficult? Is it easy? What is the sort of the tone of that environment?
Local Market Specialist 4:26
Well, we have an excellent environment here. And we’re very landlord friendly with our eviction processes. I do have an in house leasing team that I had selected. So that makes a difference. We have boots on the ground. So we make sure our paperwork is done properly. We make sure we checked our tenants make sure they had two years of job history and two years of rental history. And that makes a difference when you’re leasing property. So when you do go to evict some for whatever reason, the judges know that the investor needs to not lose the house and he’s he knows if your paperwork in order that is Time to get them out and and make your investment good to
Jason Hartman 5:04
come talk to us about the target tenant, what is the typical tenant? Where might they work? I mean, you mentioned several of the employers, you know, what, what might they do for a living? What what kind of rent are they paying? Just talk to us a little bit about that.
Local Market Specialist 5:20
Okay, I personally do rent a lot to the Nissan plant like say is 40 vendors that support the Nissan plant, it gives 6000 jobs a year. So we do run a lot to them, which is good steady income. I do rent a lot to Comcast, which is you know, our internet service here. We have several the teaching hospitals, their CNAs they they’re going to be concerned about eviction, because you know, you don’t want to lose your job. But if you want to work here, you can and it’s really exciting to be able to have the job opportunities that we do have in our our state. What about that that target tenant and that typical rent or paying, what kind of house are they getting, you know, talk to us about them. With three bedrooms, two baths will run anywhere between 750 and 1200 a month. We have a you can get some more for HUD. HUD does pay more I do work with Jackson housing and Mississippi regional housing. They are wonderful to work with. They do pay a little bit more,
Jason Hartman 6:17
but we do. Those are government assisted housing programs. When you say HUD, you mean section eight,
Local Market Specialist 6:23
that is section eight.
Jason Hartman 6:24
That’s correct. Yeah. Okay, good. Okay. Just want to make sure people are understanding what you mean by that. Okay.
Local Market Specialist 6:29
And they do work very closely with us. They’re excellent programs that they do inspect the home. So they work great, very close with proper property management. So we’ve been real pleased working with section eight. But we have so many jobs here that we do try to get that good tenant who does have two years of job history, and possibly maybe want to buy the home, clean up credit or if there’s an issue there and where they could cash us out. So that gives us another way to make that investment. A good investment. If we have a lot more opportunities to how to use the property,
Jason Hartman 7:03
what else do you want us to know? Just anything else?
Local Market Specialist 7:05
Okay. Well, besides our leasing and our job opportunities here, Jackson is known for it’s just a great place to live, we have we’ve just written up that we get $100 in Mississippi will go further than $100 anywhere in the United States. And that’s makes it a really nice place to live, you can have a nice home and live here comfortably and have a good job. And so that makes that investment property and just a real good return, you can count on it growing because the people can get qualified to buy and so you can, you know, make that opportunity for them to so they give us a lot more tools as far as your investment properties.
Jason Hartman 7:44
What’s the typical rent in the typical house like you talked about three bedroom, but tell us more about that. That typical deal. Let’s let’s look at how much does it costs for the investor to buy it? How much does it rent for, you know, what is the range of properties How old are they? What do you do in terms of rehabbing? Let’s let’s dive into that area. Let’s go down that part.
Local Market Specialist 8:06
Okay. I’m a licensed building, bonded insured contractor. I’ve been building for 30 years on new construction and so when I get on the job, I can see what that job needs so I can do a good quality for the investor we do make sure that we give a six month warranty with the homes, on rent and on repairs. But those homes are also have new heat and air conditioning. They are the electrical meters are new and up to date. We have new ovens on new outside air conditioning and the condensing units. Good roofs want to make sure you’ve got six years new of everything that should be holed up to where you won’t have any problems with your homes for at least a standard time as far as painting everything so they’re gotten the pain in them. So the tenants are excited to rent these homes and that makes the investment good. We do stay on boots on the ground to make sure that the service work is done on these homes to take care of our tenants so they please they love us. Investors love us the bread and butter houses that are sell run between 55,000 to 60,000. And people have been buying those for me on a steady basis for 10 years. Because they’re they’re easy to pay for they have a great return. But then I do get a lot of people who want that 1200 a month rent that all Brit calm with two car garage that more nicer home that they may have a little more equity in it. So we do have a good selection in that price range too. So it gives
Jason Hartman 9:34
us what was that other price range
Local Market Specialist 9:37
between 55 and 60,000.
Jason Hartman 9:40
But what’s the there’s a higher price
Local Market Specialist 9:42
price between say 70 and 85,000. We’ll run in that other price range. And those were priced for sometime between 125 between 100 125,000 maybe as much as $150,000. That’s fantastic. Wow. It is. We have a
Jason Hartman 10:02
unbelievable market here in Jackson, but but I want to I want to mention to the listeners, number one appraisals are not perfect. And number two, you know, we certainly don’t guarantee that we in fact, we never market a property as being undervalued, you know, we just want to our investors are buying for the good old fashioned conservative cash flow, they’re buying income property, not not speculating, hopefully. So I just wanted to kind of point that out. Okay, so how would you classify these properties? These I mean, your market is very inexpensive. It’s super reasonably priced 55 to $60,000 property, is that a C class property? How would you classify that?
Local Market Specialist 10:44
No, I would say it’s a little better than that I buy a lot in that price range. Now. You can go into that price range and make a little changes to them as far as maybe add granted to the countertop in retail them for 122 five to 145. So a little upgrades to where you can really make those properties extremely good for investment in a different way if you want to retell it to the tenant sometimes I’ll offer that to get that good cash out program. Also, we also are more a newer homes here. We don’t have basements here like up north. So I have real good weather here. And you don’t have to worry about real cold weather or ice and things like that in the south were extremely good weather. So we have slabs here so we don’t have to worry about the freeze. So the homes you can see how well they’re built as far as maybe an all brick home on a slab maybe newer home has metal windows versus wood so it’s less upkeep.
Jason Hartman 11:40
What is that? 55 to $60,000 properties that have three bedroom, one bath, does it have a garage, what year was it typically built? Tell us about okay.
Local Market Specialist 11:51
It could have any of those actually, depending on some of the schools districts I do fight a little bit more for the home so they will vary in size. But the market is so tight here, we just don’t have enough homes for the people in that price range because new construction is going to be 1718 to 2400 a month. So you can get these homes and but there’ll be in line to get them and they’ll run anywhere between a three bedroom, two bath, or four bedroom, two bath. But those three bedroom one bath, they’ll fight just as much to get those as they will the others. We do make sure
Jason Hartman 12:25
how much is that? 6050 to 60,000 but 55 to $60,000 house rent for
Local Market Specialist 12:30
55 to 60 around between 750 and 850 a month.
Jason Hartman 12:34
Okay. And in that’s two bathrooms and most of them Yes. Oh yes. Okay, so with garage or carport,
Local Market Specialist 12:41
I said that a very some will have some above that 75 to 85 always usually has a two car garage with garage door and clickers and maybe an all brick home too. So you will get that
Jason Hartman 12:53
Okay, and what year were these built? Typically,
Local Market Specialist 12:56
I’d say between 1960 and 1985
Local Market Specialist 13:01
I say we don’t have a lot of the older homes here, as far as past that, and we do have more slab homes that I have in my market for investments.
Jason Hartman 13:11
Talk to us about your rehab. What do you do to these properties? When you do the fix up to them? What kind of materials do you use? What about roofs? You made a remark and I was gonna ask you about it. Six years new. You said I wanted you to define that a little more clearly for the listeners as to what that means. Okay? When I get the house navigo
Local Market Specialist 13:31
have them inspected by the city, they’re gonna have electrical inspection, they’re gonna have plumbing inspection, then they have a rental inspection. So we’re inspected here a lot. So I’m going to do a good job and I do a good job so that people do respect my work. I was written up in the top business women of Mississippi, I’ve made the top 10 in my business because I’ve been in this business and I do a good job. And I pride myself on a good job. So I want to make sure I go in and have the whole house painted. I want to make sure we’ve got new features Loring, I want to make sure mostly new central heating air and furnaces. Sometimes you’ll buy one with a hot water heater only a few years old, but they need we need to know that for six years. You’ve got an products going to go at least six years and hopefully they’re going to go 10 to 15 years because sometimes air conditioning units do we’re going to upgrade that outside electric box if it needs it, but we’re going to have it inspected and make sure it’s to code also the plumbing. All the electrical light fixtures are also upgraded sinks always change the stands on the tubs and commodes are new new faucets. Everything’s going to look good. We’ve got to have it looking good because we want when that tenant comes in, they’re excited they go I want this house I will fight Please let me have this house.
Jason Hartman 14:41
So you want to make it look good. Any particular type of flooring you use, we’re telling our investors to try and really get all of their properties converted to that vinyl wood plank looking flooring. It’s so easy to replace and so durable and and just let’s just move away from carpet completely. Let’s do eggshell or low sheen paint on all the walls so the paint is so much more durable. This stuff does not cost a lot more but it lasts a lot longer. Anything you want to talk about there and
Local Market Specialist 15:13
that’s exactly the way I feel we use semi gloss. We do a light color because near the stairs new styles are white and light cream and I’m a decorator so I make my look really good too. So I
Jason Hartman 15:24
didn’t what I love is the light gray and white. I just think those houses look so elegant, you know, in the light gray and white and the wood plank style floors that are that are kind of a lighter color. But you know,
Local Market Specialist 15:36
that’s that’s exactly it. I do all solid either the solid laminate or the solid wood or the solid vinyl. I haven’t used carpet in probably six or eight years because we we want it durable you want it to last.
Jason Hartman 15:48
What about the warranty? What kind of warranties Do you offer on these properties?
Local Market Specialist 15:51
Well, I want my investors to keep buying from me so I always give them at least a six month warranty on rent and own upkeep. We want to make sure that tenants In the home and that they’re happy and our investors get off to a good start. So that makes a difference there too. But I’m here to take care of my work. I do have a licensed and bonded so I do a real good job. I try to keep my man I have men that work for me, so I haven’t got to go. I could keep them on the job a little bit lower price for the investor as far as repairing toilets and not have big plumbing bills. So that makes a difference to
Jason Hartman 16:27
okay. Okay, good. Is there anything else you’d like our listeners to know before we wrap up?
Local Market Specialist 16:33
Well, Jackson is such a great place to live in such a wonderful investment. You’ll always find I think the they are. We’ve been written up several times as a recession proof city, but also the best one of the best returns on your investment I think you will find in Jackson because you can buy these properties at such a good price. But the rent is high and the people are in line to get these houses. So that’s in there, easy to rent and they’re easy to evict. If you have issues So we have an unbelievable market here to purchase and invest at home and where the investors homes are my homes, too. So I’m right there with you every day in terms of your year, meaning that you have your own properties, right in those same neighborhoods. Right, exactly. Okay, good. How many properties Do you own? If you care to share that?
Jason Hartman 17:20
60 plus will save over over 60 Okay, good stuff. Yeah. I love it. I love it. I love it. I love to hear that. That’s fantastic. Well, thank you so much for joining us and telling us about Jackson, again, listeners we’ve been in, in this market and you know, sort of on and off in our promotion of it over the years, but we’ve always liked Jackson. I’ve been there several times myself, and we think it’s a great place. So thank you for sharing this info with us today. And we appreciate it.
Local Market Specialist 17:50
Thank you, Jason, good to visit with you.
Jason Hartman 17:54
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