Mississippi offers real estate investors a stable market to get their footing with their first investment properties. Building a real estate portfolio requires initiative and drive, but a stable market certainly helps.
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Steady Market GrowthThe Mississippi rental market is steadily growing, creating a high demand so investors can capitalize on steady rental income streams. It's also affordable, with low property prices helping new investors enter the market. |
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Economic DevelopmentMississippi has a strong commitment to economic development. They offer tax incentives and business-friendly policies to help real estate investors start their rental business. The favorable environment for businesses also draws in more job opportunities, in turn bringing in more renters. |
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A Landlord-Friendly ApproachWhile there are rules and regulations in place to protect Tenants' rights, there is a lack of rent control laws, and landlords have the power they need to set lease terms and handle evictions. If you're interested in rental property in Mississippi, it's a good idea to review the current Landlord-Tenant laws to protect your investment. |
Mississippi's low prices demonstrate the perfect opportunity to start building a real estate portfolio, especially with residential property.
Zillow shows us that the current average home value in Mississippi is 176,655, a 2% increase from 2022. Their Market Overview also reveals the following:
DSCR basically evaluates a property's cash flow. A DSCR of 1.0x reveals properties that pay their debt obligations but don't really turn a profit.
Less than one shows that the investor is taking a loss; over one demonstrates that the investor has a steady rental income and can likely invest further.
To determine DSCR, lenders will look at a property's net operating income and divide it by debt obligations like loan payments, utilities, and insurance.
Investors in Mississippi and across the US appreciate DSCR loans for their maximum loan-to-value ratio and reliance on potential cash flow over personal financial history.
DSCR lenders don't look at a borrower's personal income; rather, the direct lender will estimate a property's potential rental income and compare that to average costs.
This metric, called DSCR, helps lenders ensure the property will have sufficient cash flow to cover its debts.
Lenders look for a DSCR of 1.00 (often higher) and a minimum credit score of 680 when determining eligibility, though some will go lower.
Previous property management is a plus but not a deciding factor.
While DSCR loans do have a slightly higher interest rate, 1-2%, the LTV means most borrowers can expect a minimum down payment of 20% and better loan terms.
The attractive terms of DSCR loans also make them a great way to refinance hard money loans.
Check out some of Visio Lending's recently closed DSCR loans in Mississippi.
Jackson, MS
Gulfport, MS
Tupelo, MS
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Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.