Are you interested in getting started with real estate investing, but don't know where to begin? Investing in real estate can be a great way to build wealth over time, but it does require some knowledge and preparation. This comprehensive guide covers the basics of real estate investing, with a specific focus on the Laurel, Mississippi market.

Real Estate Investing for Beginners: A Guide to Getting Started in Laurel, Mississippi

Why Invest in Laurel, Mississippi Real Estate?

Laurel is located in Jones County in southern Mississippi. It has a population of over 18,000 residents and is home to a historic downtown area, parks, golf courses, and shopping centers. Here are some key reasons why Laurel can be a good market for real estate investing:

• Affordable Home Prices: The median listing price for homes in Laurel is around $149,900 as of November 2023, according to Zillow. This is well below the national median home price of $427,000. Investors can find solid rental properties or fix-and-flip opportunities at reasonable price points.
• Strong Rental Demand: With Camp Shelby nearby and two universities in the city (Laurel College and William Carey University), there is strong demand for rentals in Laurel. The city has a tight rental vacancy rate of only 5%.
• Job Growth: Major employers in the area include Howard Industries, Masonite, and Sanderson Farms. The unemployment rate in Laurel is low at under 5%, indicating a solid job market.
• Population Growth: Laurel's population grew by 8.2% between 2010 and 2020, according to census data. More people moving to the area means more demand for housing.

The combination of affordable home prices, employment opportunities, and population growth make Laurel a potentially profitable real estate investment location.

How to Get Started in Laurel Real Estate Investing

If you want to break into the Laurel real estate market, here are some steps to take:

Educate Yourself

Before making any investments, you need to learn the fundamentals. Read books, listen to podcasts, and review blogs and forums to learn terminology, understand investment strategies, and gain knowledge about the overall real estate industry. Some good educational sources include BiggerPockets, The Real Estate Guys Radio Show, and books like "The Book on Rental Property Investing" by Brandon Turner.

Determine Your Investment Goals

Get clear on why you want to invest in real estate. Do you want to generate ongoing passive income from rentals? Flip properties for profit? Build up assets for retirement? Understanding your motivations will help shape your investment strategy. Set specific financial goals too, like how much cash flow or what total portfolio value you want to achieve.

Analyze the Laurel Real Estate Market

Research recent sales, pricing trends, and demand drivers in the Laurel market. Look at data on Zillow or Realtor.com to see what types of properties are selling and for how much. Drive around different neighborhoods to view housing stock and area amenities. Understanding the hyperlocal market conditions will lead to smarter investments.

Choose a Real Estate Investment Strategy

Common beginner strategies in Laurel include:

• Rental properties: Buying multi-family properties or single-family homes to rent out long-term. Laurel offers affordable properties that can generate ongoing passive income.
• Wholesaling: Finding undervalued properties, putting them under contract, and then assigning the contract to a buyer for profit. This allows investing with little upfront capital.
• House flipping: Buying fixer-upper properties, renovating them, and reselling them for a higher price. Laurel has an older housing stock suitable for flipping.
• REIT investing: Investing in real estate investment trusts that own and operate properties. This allows investors to gain exposure to real estate without direct ownership.

Find the Right Location and Property

Location is key when investing in real estate. Research Laurel neighborhoods and look for areas with strong housing demand, employment growth, and infrastructure development. Avoid neighborhoods with high crime, declining home values, and other red flags. Consider the pros and cons of properties near the universities or industrial areas.

When viewing specific properties, calculate the "70% Rule" to estimate repair costs and look for signs of foundational, electrical, or plumbing issues that could mean major expensive fixes.

Run the Numbers

Crunch the numbers to determine profitability on potential deals. Estimate costs like purchase price, repairs, taxes, insurance, utilities, and financing costs. Then factor in potential rental income, appreciation, and expenses. Use Excel, property investment calculators, or apps like DealCheck to assess cash flow, ROI, cap rate, and other key metrics. Avoid properties that don't pencil out.

Fund Your Investments

You'll need capital to start investing! Beginner investors often use personal savings, home equity lines of credit, or private lending for their first deals. Over time, you can build relationships with banks and larger private lenders to access more funding. Many successful investors use "OPM" - Other People's Money - to fund deals.

Build Your Real Estate Team

Experienced real estate professionals can help guide you. Cultivate relationships with knowledgeable real estate agents, lenders, appraisers, property managers, contractors, CPAs, and real estate attorneys. A strong team is invaluable when first getting started.

Start Small and Gain Experience

Don't bite off more than you can chew as a beginner! Start with a single-family rental or wholesale deal while you get your feet wet. Gain direct experience analyzing deals, purchasing properties, screening tenants, managing projects, and more. Use your first few deals to refine your processes and strategy.

Keys to Succeeding With Laurel Real Estate Investments

Follow these best practices to boost your chances of success as you start your Laurel real estate investing journey:

• Set conservative underwriting criteria: Use cautious assumptions about expenses, vacancy rates, appreciation, etc. to ensure positive cash flow.
• Insure your properties adequately: Landlord insurance, property insurance, and liability coverage help mitigate risks.
• Screen tenants thoroughly: Do credit checks, background checks, employment verification, and in-person interviews. Avoid problem tenants.
• Build your buyer's list: Wholesalers need a list of cash buyers interested in deals; market to build this list over time.
• Inspect before purchasing: Hire pros to inspect for big issues before acquiring any property.
• Stick to your budget: With rehabs or flips, overspending can eat into profits quickly. Monitor expenses closely.
• Use a property manager: They handle tasks like tenant screening, maintenance, and rent collection for 10% of rent. Worth the cost for out-of-state or busy investors.
• Continue learning: Join a real estate group, listen to podcasts, and read books to continue expanding your knowledge.

The Laurel real estate market provides a reasonably priced area for those looking to get started with rental properties, rehabs, wholesaling, or buy-and-hold investing. By following sound strategies and best practices, investors can build a profitable portfolio over time. Do thorough research, start small, lean on experienced mentors, and look for ways to add value.

Frequently Asked Questions on Laurel Real Estate Investing

Why are houses so cheap in Laurel, Mississippi?

Houses are very affordable in Laurel, Mississippi compared to national averages for a few key reasons:

• Lower cost of living: Mississippi has low taxes, affordable utilities, and cheap insurance which reduces housing costs. Laurel's overall cost of living is over 15% below the national average.
• Older housing stock: Many homes are older and smaller, averaging around 1,500 square feet. Land and construction costs were lower when they were built.
• Population decline: Laurel's population shrank in the 1980s after manufacturing plants closed. This caused property values to drop until the city rebounded.
• High foreclosure rates: Mississippi was hit hard by the housing crisis, resulting in a glut of cheap foreclosed properties entering the market.
• Low median income: The median household income in Laurel is around $38,000. Lower family incomes limit how much buyers can pay for housing.

Investors can capitalize on these low housing costs, purchasing properties well below the national median home price. Laurel Real Estate provides an affordable entry point into the market.

Old homes for sale in Laurel, Mississippi

Laurel has a large stock of older homes, many built from the 1950s back to the late 1800s. Here are a few ways investors can find old homes for sale:

• Drive or walk different neighborhoods to spot old homes with "for sale" signs. Areas like the Historic District along 5th Avenue have beautiful intact period homes.
• Check for listings on sites like Zillow and Realtor.com filtered for homes built in 1950 or earlier. You can see interior photos showing original wood floors, layouts, fireplaces, and more.
• Visit estate sales for older Laurel residents. Many families are looking to sell the old family homestead.
• Let local real estate agents know you're looking for old homes. They often hear about unlisted properties through word-of-mouth.
• Look for dilapidated, vacant old homes that may not be listed. Research the owner and make an offer to purchase the property directly.
• Read the Daily Leader classifieds for by-owner listings of older homes.
• Drive down streets scouting for empty old homes. Look up ownership records through the Jones County assessor site.

Older homes often make good investment properties after renovations or to keep their historic charm. Their all-brick construction and large lots hold value well in the Laurel market.

Hometown Homes for sale in Laurel, Mississippi

Hometown Homes is a manufactured home dealership with two locations in Laurel, MS - one on Sawmill Road and one on Ellisville Blvd. Here are some tips for finding Hometown Homes for sale:

• Check their website homelandms.com which lists available new and used mobile homes for sale or rent. Filter by location to see Laurel's listings.
• Call their Laurel sales office at 601-649-8584 to ask about the current inventory of manufactured homes. Let them know what size, floor plan, etc you are looking for.
• Drive through their Laurel lots to see homes on display. Write down the model numbers of homes you're interested in.
• Consider custom ordering a new manufactured home through Hometown and having it installed on a Laurel lot you purchase separately.
• Ask about any used Laurel trade-ins that may be available. Some older mobile homes can be purchased very affordably.
• Get pre-approved for financing if needed. Hometown works with lenders that finance manufactured homes.
• Look for their listings on Zillow, Trulia, and other MLS sites. Individual real estate agents list some units.
• Check their Facebook page for photos and videos of listings. Follow them to get updates on new arriving inventory.

Work with the knowledgeable Hometown Homes staff to tour options onsite. Their Laurel locations offer an affordable way to buy a quality new home while avoiding bidding wars on traditional stick-built houses.

Laurel, Mississippi Real Estate for Sale by Owner

For sale by owner (FSBO), listings can provide good off-market investment opportunities in Laurel. Here are some tips for finding them:

• Search sites like Craigslist, Facebook Marketplace, Nextdoor, and Oodle for Laurel FSBO listings. Check daily as new ones are frequently posted.
• Drive or walk around different Laurel neighborhoods and look for FSBO signs in yards. Jot down the address and phone number.
• Let Laurel real estate agents know you’re interested in purchasing FSBO properties. They often hear about unlisted ones through word-of-mouth.
• Join local Laurel Facebook groups and keep an eye out for sale posts by homeowners.
• Look for listings in the printed Laurel Chronicle classifieds under their real estate section.
• Search Laurel's tax records for recent sales, then look up those addresses to see if they now have an FSBO sign out front.
• Talk to friends, family, and colleagues about your interest in direct FSBO purchases. Networking can uncover deals.
• Consider sending out direct mail letters to Laurel homeowners, particularly in distressed areas, inquiring about purchasing their house.
• Drive down streets scouting for FSBO signs. Jot down addresses and contact info.

Approaching motivated FSBO sellers can give investors an edge over bidding against competition on the MLS. Be prepared to act quickly when you find a good Laurel FSBO deal.

Laurel, Mississippi Real Estate for Rent

Those investing in Laurel rental properties have plenty of options. Here are some tips for finding properties for rent:

• Check major listing sites like Zillow, Trulia, Apartments.com, and HotPads filtered to Laurel and surrounding areas. Set up alerts for new listings.
• Drive around neighborhoods looking for "For Rent" yard signs. Property owners and managers often only advertise with signs.
• Look for local classifieds listings in the Laurel Chronicle, on Facebook Marketplace, and on community bulletin boards.
• Contact local property management companies about available rentals. For example J & S Property Management, McNair Property Management, and ERA King Realty.
• Let your Realtor contacts know you’re looking to invest in rental properties. They can alert you to units becoming available.
• Consider multi-family properties, like the many duplexes and quadplexes available in Laurel.
• Look for trailing rental units, aka “granny flats” or in-law suites, which can be found behind some Laurel single-family homes.
• Check for rental listings at William Carey University and Jones County Junior College to find student housing options.
• Drive down streets looking, for NOW, LEASING signs at apartment complexes or independent landlords renting out single-family homes.

With strong demand from students, military renters, and young families, Laurel has many solid options for real estate investors looking to profit from the active rental market. Cast a wide net to find available units.

Laurel, Mississippi Real Estate Zillow

Zillow is one of the top sites investors use to search for Laurel real estate online. Here are some tips for using Zillow:

• On the main search page, enter "Laurel, MS" and hit search to see all listings. Use the filters on the left side to narrow down by price, bedrooms, property type, etc.
• Look at Laurel listings under the For Sale and Make Me Move tabs to find motivated sellers. Agents market homes here that clients are eager to offload.
• Check out the Rentals tab to see what types of homes and prices are currently rented in Laurel. Compare to for-sale homes.
• The map view shows concentrations of listings, sale prices, and values across different Laurel neighborhoods. Look for emerging areas.
• Click on any property to see all details, photos, past sales history, taxes, Zestimates, and real-time market trends.
• Set up a Property Alert for emails when new Laurel listings match your investment criteria.
• Use Zillow mortgages to get rate quotes. Usually required for financing investment properties.
• Read local agent reviews and connect with the most experienced Laurel real estate brokers.
• Utilize Zillow's affordability tools and cost of living data for the area.

Zillow provides a wealth of up-to-date information and resources for researching the Laurel market and finding potential investment properties. Real estate investors use it as a go-to source for deal sourcing.

Single Family Homes for Sale in Laurel, Mississippi

Laurel offers investors a good supply of reasonably priced single-family residences. Here are some ways to find them:

• Zillow, Realtor.com, and other MLS sites make searching simple. Look for 3+ bed, 2+ bath homes under $250k.
• Drive around town to spot For Sale signs. Areas like Westwood, The Pines, and Conway Park have concentrations of ownership single-family homes.
• Contact local real estate agents about new on-market and off-market listings. They can set up showings.
• Look for listings from property management companies, as some single-family rentals get sold off.
• Check for by-owner listings on Facebook Marketplace, Craigslist, and Nextdoor.
• Look for signs of unlisted homes that may sell soon - renovation work, dumpsters, etc. Knock and ask owners if interested in selling.
• Look for estate sale listings, as inheritors often want to sell inherited properties.
• Search using GIS property maps to find single-family zoning areas, then cross-check owner names for elderly residents who may sell soon.

Ideally look for 3-4 bedroom, 2+ bath homes below $180,000 in Laurel’s owner-occupied neighborhoods. Large yards and renovated kitchens/bathrooms help values. Thoroughly inspect any home before purchasing.

Farm Houses for Sale in Laurel, Mississippi

Laurel's location in a rural agricultural area means that farm houses are a common real estate listing type. Some ways investors can find these properties include:

• Check rural-specialized sites like Lands of America, Farm and Ranch Realty, and Country Homes for sale listings.
• Search for keywords like "farmhouse", "equestrian property", "ranchette" etc on MLS sites.
• Look for ads in the Daily Leader's agricultural section or Mississippi Cattlemen's Association for cattle farms selling off acreage with homes.
• Drive county roads outside Laurel city limits and look for aging farm houses with FOR SALE signs.
• Contact large farm owners directly about purchasing unused farm dwellings - check the county GIS site for top landowners.
• Let real estate agents know you're looking for farm houses. They represent many agricultural clients.
• Attend local livestock auctions and talk to farmers about possible off-market opportunities.
• Check foreclosure listings, as some may include rural foreclosed homes.
• Join the Jones County agriculture Facebook group and watch for sale by owner posts.

Here are some additional details on finding farmhouses for sale in Laurel, Mississippi:

• Tour open houses listed for acreage and rural properties to view any farmhouses included.
• Look for probate or estate sales for deceased farmers. Their families often need to liquidate the property.
• Watch for rezoning petitions on the outskirts of Laurel, as developers may want to sell off farmhouses on land planned for redevelopment.
• Network with local farm services businesses like tractor supply stores, feed stores, and livestock vets to get word-of-mouth referrals.
• Check the classifieds in regional farming publications for sale listings.
• Consider an exchange through 1031 to defer taxes by selling an investment property and reinvesting in a Laurel farmhouse.
• Partner with a local farmer looking to retire and take over their property including the farm dwelling.
• Look for foreclosed rural bank branches with manager homes on-site to repurpose.

Finding the right farmhouse takes legwork and networking, but Laurel's rich agricultural economy means deals can be uncovered for patient investors. Inspect carefully for issues like groundwater contamination, termite damage, or illegal DIY electrical work.