There is just something about living on the water that nothing else seems to match in terms of quality of life. Sitting on your deck in the early evening, looking over the open water or bayous, sipping an evening cocktail while enjoying the company of a loved one or close friend, or even sitting out in your back yard, fishing pole in hand, chatting with your kids. There is simply so much to enjoy from waterfront living and there is a reason the waterfront properties sell at a premium.

I spend a lot of time researching and viewing waterfront properties, and even more-so on the Biloxi Bay and the navigable waterways in the area. Due to Katrina, an anomaly by any standard, there are a lot of great deals still to be found on waterfront properties on and around the Biloxi Bay. Whether you are looking for the convenience and low maintenance of a condo at Anatole Bay or Bay Cove, or you are looking to build an upscale home at Langley Point – I can help if you contact me.

There are currently numerous lots on the Biloxi Bay, starting around the $100k+/- range, and there are more protected waterfront communities within minutes by boat to the bay starting in the $60k+/- range. May of these communities have many like-minded individuals that will share your enthusiasm for the water and fun and some have community use items such as pools and clubhouses.

Contact me to help you sell, buy or build your home on or around the water!

Knowing how to invest properly in real estate includes one important step that many investors forget – picking the right agent. Many investors choose properties to purchase based on what everyone else is doing or based on a sales flier they received from a listing agent telling them what a great deal it is, when both of these actions are the furthest away from what you want to do – unless you just like losing money.

The truth of the matter is, that many agents do not know how to properly valuate investment property or know how to analyze an investors individual needs. While I focus primarily on properties that will generate cash flow and the best potential for appreciation, I also realize that some investors are fine with an after tax cash flow if they can see a greater short term return on investment.

My investment strategy in my late 20’s was to look for things I could make a quick return on and get out of but as I got older I realized that longer term passive income was better for my overall strategy and I was fine with less appreciation potential as long as it could comfortably generate a revenue stream for me. In 10 years, I may have a different outlook. The point is, everyone’s goals are different and it is important to know what those goals are in the beginning and this is why I am a great choice as an investment REALTOR® on the Mississippi Coast. I work from Bay St Louis to Ocean Springs and can help you formulate a plan to maximize your goals.

Contact me and lets get started evaluating your needs so that I can assist you in meeting your real estate investing goals.

Biloxi MS waterfront condos have finally started to see some reason in their pricing. Two and three years ago, I would have told you not to touch any of the large condo developments because they were drastically overpriced for our market and only appealed to out of state investors who “thought” they would appreciate. This of course was not the case, many of them went into foreclosure or short sales, and others are starting to see the truth of the market – now is the time to really get serious about buying a waterfront condo in Biloxi.

For the past few years, the only waterfront condo development I would have anything to do with was Anatole Bay. Anatole bay condos rest on the south side of the Biloxi bay and host many amenities including a nice swimming pool, clubhouse, and boat slips for all owners that is has power and water to the slips. While it is an older development, many of the units have been upgraded to today’s standards and prices start right around $200k, although occasionally a unit wil pop up lower.

If you are looking more at beachfront condos, there are several to choose from but probably the two favorite in Biloxi are Ocean Club and SeaBreeze. Ocean Club concerns me a bit because I have heard that due to a high investor pool  that are not paying their HOA dues, the HOA may be on shaky ground. It is important that I have not had any clients looking at this development recently so I have not personally verified this information and would do so at the point that it was necessary. The SeaBreeze beachfront condos on the other hand is a much better investment and one of only a few condo developments on the coast that are directly on the sand beach, plus, it is close to everything that Biloxi has to offer. This provides for not only a much more satisfying experience, but also a greater chance for future appreciation. SeaBreeze units are currently in the $300k+/- range.

Bay Cove and a few others show promise, but that is a subject for a different post

Whatever your needs in the waterfront condos market, please contact me. I may not always have the answers that you want to hear, but I always try to as forthcoming as possible and look forward to working with you!

Over the past few years, new homes have dominated the market in Gulfport and Biloxi MS. This is partially from unknown issues with “pre-Katrina” homes and the relatively low pricepoint of new homes. New homes in desirable subdivisions are starting in the $130k range with many nice amenities such as granite counters and tile floors. Obviously, prices go up from there, but we are not talking about a crappy little vinyl-wrap box for that and other builders are following suit.

It is feasible to even get a nice, waterfront home starting at this pricepoint. I have a builder that has averaged around $80/ft and really pays attention to the details of a home. He is able to keep his costs low because he has been using many of the same subcontractors for years and he keeps them busy (the philosophy of steady work at a steady pay is better than sporadic work at high pay).

Whether you are looking to buy a new home in a new subdivision or build a new home, contact me to assist with the process. I am typically paid by the seller or builder giving you my expertise without having to come out of pocket.

With tax advantages (Go Zone) and other incentives (SRAP, MDA), many investors fell prey to unscrupulous or unknowledgeable agents and brokers pushing properties just to take advantage of these incentives. It is unfortunate that this happened, but in some ways it has made it a great market place for serious investors who work with a broker who truly helps minimize risk and secure the investors objectives.

There are so many ways to make money in real estate investing. I am familiar with many, but my specialties lie in the analysis of residential (single family and multi-family) properties. This includes developing raw land for residential use as well. I will touch on just a few here that offer exceptional opportunities.

Go Zone
Go Zone has been extended through the end of this year. It is expected that this will be the last extension so if you are looking to take advantage of this, NOW is the time to do so. Go Zone offers the ability to depreciate 50% of the improvements on a property in the first year. The property has to have not been put into service (see more info on Go Zone). This depreciation can be carried back to recoup taxes as well as forward to help mitigate future tax liability. Just because it sounds good though – don’t always jump just because it looks good on paper!

Go Zone is an excellent incentive when used as a part of your overall real estate investment plan. Some agents have no problem selling you an overpriced property that will never cash flow, just so you can get go zone depreciation. Stay away from multi-family right now. The market is inundated with duplexes and fourplexes from people buying overpriced for Go Zone. Unless you have something really special – stay away. It simply makes no sense to spend $80k-$100k a door when you can buy foreclosed units for $40k-$50k a door, sometimes less. Single family homes are the best way to go. Their are a handful of communities where you can pick up existing inventory that will cash flow and offer a high chance of good appreciation. Single family homes give you the best exit strategy as well – much easier to sell a home than a duplex.

Foreclosures
Due to many investors being taken advantage of over the past few years, there are numerous foreclosure and really great deals in the multi-family market, specifically in duplex units. It is not uncommon to find fairly new duplexes in the $80k-$100k range that will reach rents around $1500/month (both sides). Many of these deals reflect double-digit CAP rates which are almost unheard of in the residential market.

There are also opportunities in “flipping” properties. The best deals are for those that have cash and a stomach to sit on something for several months. The properties that have the most potential for return on investment also require the most work and may take a few months to complete if you are working to adhere to a stricter budget. If you have the stomach for it, and the cash to put up, deals can be found with 30% or more cash on cash. I have personally assisted investors with deals that provided over 100% cash on cash in all cash transactions. Rehab loans are harder to come by in the investment arena. An owner-occupant (someone looking to live in the property) can look at FHA 203k programs (I have a great lender for this), but investors are finding it harder to get loans to rehab and hard money is so tight right now that when you can find a hard money lender willing to fund a project, the rates and points will eat away a large portion of your profits.

Overall “Short” Analysis (Summary)
If you need tax incentives, make sure you can cash flow. Properties in select areas can cash flow easily with 25-30% (most lenders requirement now) and the single family market is an easier exit strategy. Look for indicators of higher potential appreciation areas. If you are just looking for straight positive cash flow (passive income), and are not as concerned about the exit, look more at duplexes because now is the time to buy right.

Contact Me with any questions or to assist in putting together a more detailed investment strategy. I look forward to working with you.

Biloxi, MS is a great place to call home. The real estate market has stayed as one of the top appreciable places in the country (RE Investment Blog) because of its location and flourishing local economy.

Keesler Air Force Base, one of the largest air bases in the country, is a major employer as well as several casinos and numerous tourist attractions. Neighboring cities are almost an extension of Biloxi (and Biloxi is to them as well) as the entire coast almost feels like one large city rather than a compilation of several.

Aside from employers, Biloxi also offers an expansive array of dining facilities, arts, and other entertainment. Anyone that knows me will tell you my favorite part about the area is the boating and fishing. Barrier islands make a great day outing for anyone for fishing, swimming, or just hanging out on a semi-excluded beach (East Ship Island is only accessible by private boat or charter, West Ship Island is accessible to the masses by way of ferry (no vehicles). Smaller islands are also a great outing and can be reached much easier. Deer Island is being expanded and is an easy skip over on a small boat, canoe, jet ski or swimming with a little stamina.

The population of Biloxi is just under 50,000 (city data, 2009) but economic impact is greater from surrounding areas. The real estate market remains steady and is showing signs of leveling back out from surges that were created after hurricane Katrina in August 2005. An initial surge took several years to level out, but signs are leaning towards stability and positive appreciation. As an Emerging Real Estate Market, Biloxi will continue to grow and be a positive place to call home or invest.

Contact me if you are interested in selling, purchasing, or investing in Biloxi real estate.