Mississippi’s real estate market often goes under the radar for many investors, but savvy ones like Thomas Green, a Jackson-based investor, have seen great success in the state. In this success story, we explore how Thomas acquired a distressed property in Jackson, renovated it, and turned it into a cash-flowing rental with the help of Prospera Real Estate Loans.
The Property
Thomas purchased a 4-bedroom, 3-bathroom house in Jackson for $100,000. The home, built in the 1950s, had been neglected and was in need of significant repairs, including a new roof, plumbing work, and modernizing the kitchen and bathrooms.
Renovation Details
Thomas allocated a budget of $40,000 for renovations, which included replacing the roof, updating the electrical system, installing new hardwood floors, and completely remodeling the kitchen and bathrooms.
Financing the Project
Using Prospera’s Rental Property Loan, Thomas financed 80% of the purchase price and 100% of the renovation costs, totaling $120,000. The loan came with a 6.75% interest rate and a 25-year term. With rental properties in Jackson seeing an average of 8% annual appreciation, this was an excellent investment opportunity.
Results
After completing the renovations, Thomas rented the property for $1,600 per month. This produced a gross rental income of $19,200 annually. After accounting for expenses (mortgage, property taxes, maintenance, and insurance), his net rental income was $9,000 per year. The property’s market value also increased to $180,000, giving Thomas a strong ROI on both the income and the asset value.
Lessons Learned
Mississippi offers opportunities for profitable rental properties, especially in cities like Jackson, where housing demand is steady but prices are still reasonable.
Investors can achieve solid returns by targeting properties with renovation potential.
Use financing tools like Prospera’s Rental Property Loans to maximize cash flow and property appreciation.
Contact Us for Top Lending Options
Are you ready to elevate your real estate investments in Mississippi? Don’t navigate the complexities of financing alone. Call Prospera Real Estate Loans today at 1-888-908-8556 for expert loan advice tailored to your needs.
If you prefer, you can also request a quote by visiting our website: Request a Quote.
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