How To Flip Houses In Mississippi: Step By Step (2024)

Mississippi offers a unique landscape for aspiring house flippers, characterized by diverse neighborhoods, historical charm, and a thriving housing market. As new investors enter this arena, however, they are met with the promise of lucrative returns and the challenge of navigating an intimidating industry. As a result, now is as good a time as any to learn how to flip houses in Mississippi.

As we explore the seven steps of flipping houses in Mississippi, we'll examine every facet of the process, from identifying potential properties and securing financing to executing renovations and maximizing profitability upon resale. We aim to empower investors with actionable insights and offer a tailored perspective on how these steps align with the Mississippi real estate landscape.

By the end of this guide, investors will be equipped with all of the knowledge, tools, and confidence they need to initiate their flipping careers, including:

• What Is Flipping Houses?
• Mississippi House-Flipping Statistics
• How To Flip Houses In Mississippi (7 Steps)
• How To Find Houses To Flip In Mississippi
• Do You Need A License To Flip Houses In Mississippi?
• How To Flip A House In Mississippi With No Money
• Best Cities To Flip Houses In Mississippi
• Final Thoughts On Flipping Homes In Mississippi

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house in Mississippi as a beginner! 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!

What Is Flipping Houses?

As a core strategy in real estate investing, flipping houses involves purchasing, renovating, and reselling properties for a profit. This strategy is particularly compelling in the context of Mississippi due to the state's dynamic housing market.

This strategy holds widespread appeal among investors in Mississippi due to its potential for substantial lump-sum profits and relatively swift turnaround times. Flipping houses stand out as the go-to option, primarily because it allows investors to realize significant gains through strategic decision-making and effective project management. Despite the challenges posed by increased property prices and interest rates, the demand for well-located, skillfully renovated homes remains robust in Mississippi.

For those considering how to flip houses in Mississippi, the current market climate presents opportunities for skilled investors to seize the advantages of this lucrative strategy. By leveraging market trends, local insights, and an understanding of the rehab process, aspiring flippers can position themselves to thrive in a market that continues to demonstrate resilience and promise.

Mississippi House-Flipping Statistics

Before embarking on real estate investment ventures in Mississippi, investors must be well-informed about key statistical and data-driven insights. This knowledge will guide their decisions and contribute to successful outcomes:

• Average Home Prices: $176,655
• 1-Year Appreciation Rate: +2.0%
• Median Days To Pending: 13
• Median Days On Market: 27
• Active Listings: 6,323
• New Listings: 1,993
• Months Of Supply: 3
• Foreclosure Rate: One in every 8,499 homes
• Population: 2,940,057
• Median Household Income: $49,111
• Unemployment Rate: 0%

*All Mississippi housing market statistics are as of Q3 2023.

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How To Flip Houses In Mississippi (7 Steps)

A well-defined path is essential for aspiring real estate investors looking to excel in flipping homes in Mississippi. These seven steps serve as a comprehensive guide, helping investors navigate the intricate process of flipping houses and achieving success in the ever-evolving Mississippi real estate market:

1. Find A House-Flipping Mentor
2. Research The Local Housing Market
3. Find & Analyze Distressed Properties
4. Raise Capital To Fund The Deal
5. Close On The House
6. Renovate The Property
7. Resell The House

1. Find A House-Flipping Mentor

A house-flipping mentor is a guiding light for new investors entering the world of real estate. These experienced mentors offer invaluable insights and wisdom derived from their hands-on experience, imparting practical knowledge that textbooks alone cannot provide. Learning from a real estate mentor allows budding investors to tap into the mentor's wealth of experience, gaining a deep understanding of the nuances of the market and the complexities of the flipping process.

The mentor's role goes beyond theory, offering a tangible connection to the real world of real estate. This mentorship translates into better decision-making, higher success rates, and reduced risks for the novice investor. By learning from someone who has navigated the ups and downs of the industry, investors can improve with more confidence and competence.

A house-flipping mentor not only empowers new investors with the tools to succeed but also instills the crucial elements of resilience, adaptability, and strategic thinking needed for a flourishing career in real estate.

Ready to start house-flipping in Mississippi? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!

2. Research The Local Housing Market

These invaluable references will guide investors through the complex world of real estate and increase their chances of success. From understanding local market trends to legal considerations, these resources offer a comprehensive foundation for any house-flipping novice:

• Zillow Housing Data Research
• Zillow’s Mississippi Market Overview
• Redfin’s Mississippi Housing Market Data
• Realtor.com’s Mississippi Market Overview
• Realtor.com’s Residential Data Library
• Mississippi Association Of Realtors
• ATTOM Data Solutions’ Mississippi Real Estate & Property Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureau’s Mississippi Data
• Bureau Of Labor Statistics’ Mississippi Economic Data
• Mississippi Real Estate Commission
• Federal Reserve Bank of St. Louis’ Mississippi Data

3. Find & Analyze Distressed Properties

When evaluating a potential flip property in Mississippi, meticulous analysis is vital to making an informed investment decision. For new investors, the "70% rule" is a great way to learn how to tell whether or not some assets are worth buying. To calculate the 70% rule, take 70% of the property's after-repair value (ARV) and subtract the estimated repair costs; this will give you the maximum allowable offer (MAO), ensuring that the purchase and renovation costs don't exceed 70% of the ARV.

To implement this, start by determining the ARV of the property, which involves researching recent comparable sales in the area and factoring in the potential improvements you plan to make. Next, accurately estimate the repair costs by thoroughly inspecting the property and obtaining contractor quotes. Deduct these repair costs from the 70% of ARV to calculate your MAO.

Adhering to this approach will likely secure a profitable deal that aligns with investors’ goals. Successful house flipping relies on accurate financial calculations and understanding local market dynamics. Ensuring that the property's MAO falls within your budget while allowing for a reasonable profit margin is crucial for a successful house-flipping venture in Mississippi.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

Read Also: Free ARV Calculator: After Repair Value Calculation

4. Raise Capital To Fund The Deal

Several options are available for new investors looking to fund their first house-flipping deal in Mississippi. Hard money lenders and private money lenders are common choices. Hard money loans provide a quick and accessible source of capital, often backed by the property itself. On the other hand, private money loans involve borrowing from individuals within your network, offering flexibility and potentially favorable terms.

In addition to these options, alternative funding sources include self-funding, using your savings or assets, or partnering with experienced investors who can provide financial support and valuable guidance. Crowdfunding platforms allow you to raise funds from a broader pool of investors online. Furthermore, exploring government grants, loans, or community development programs can provide additional resources.

Before deciding on a funding strategy, assess your financial situation, risk tolerance, and the terms different lenders offer. Remember that each financing option has benefits and considerations, so researching and comparing them is crucial for determining the best fit for your house-flipping journey in Mississippi.

Read Also: Free Hard Money Loan Calculator: Quick & Accurate Results

5. Close On The House

In attorney states like Mississippi, the closing process for real estate transactions involving hard or private money lenders has specific steps to ensure legal compliance and protection for all parties involved. First, a purchase agreement is drafted after agreeing on the loan terms and property purchase. This agreement outlines the terms of the sale, including the purchase price, financing details, and any contingencies.

Next, an attorney reviews and drafts necessary legal documents, ensuring the transaction adheres to state laws and regulations. These documents include the promissory note, which outlines the loan terms, and the mortgage or deed of trust, which secures the loan against the property.

During the closing, the buyer and lender sign the necessary documents, and the funds are transferred to complete the purchase. The lender's funds cover the property acquisition, while the borrower may need to contribute additional funds if required by the lender's terms.

As the final step, the deed is recorded with the county recorder's office to officially transfer ownership of the property to the buyer. This process helps establish clear legal ownership and ensures that the property can be resold or transferred without any complications.

It's important to note that the specific steps and requirements can vary based on several factors. Engaging an experienced real estate attorney or professional can provide guidance and ensure a smooth and legally compliant closing process for investors using hard or private money to acquire properties in attorney states like Mississippi.

6. Renovate The Property

Investors must strategically renovate properties to enhance their property value, focusing on projects that yield the highest return on investment. Prioritizing renovations based on their potential to increase the property's worth ensures that resources are effectively utilized for maximum profitability.

According to Remodeling Magazine, the renovations that return the most money to investors in Mississippi (and the rest of the East/South/Central region of the United States) are:

• Fiber-Cement Siding Replacement: Recoups 106.5% of the original cost
• Manufactured Stone Veneer: Recoups 101.5% of the original cost
• Vinyl Siding Replacement: Recoups 98.1% of the original cost
• Garage Door Replacement: Recoups 93.1% of the original cost
• Electric HVAC Conversion: Recoups 92.3% of the original cost

7. Resell The House

After rehabbing a house to increase its value, the next step is to sell it for a profit. To do this successfully, consider enlisting the expertise of a real estate agent or Realtor specializing in the Mississippi market. Their local knowledge, marketing skills, and negotiation expertise can help you sell the property for a higher price and in a shorter timeframe.

They will guide you through competitive pricing, staging, and effectively marketing the house to potential buyers. Collaborating with a professional ensures your investment property is positioned for optimal returns in the Mississippi real estate market.

How To Find Houses To Flip In Mississippi

The best strategies to find houses to flip in Mississippi include, but are not limited to:

• MLS Listings: Investors strategically search through Multiple Listing Service (MLS) listings, honing in on properties that have lingered on the market, indicating potential negotiation opportunities.
• Auctions: Savvy investors engage in foreclosure or public auctions to secure distressed properties that can be acquired at potentially discounted prices, enhancing their flipping prospects.
• Direct Mail: Employing targeted direct mail campaigns, investors tap into a proactive approach to discover properties yet to be listed on the market, reaching distressed homeowners who may be motivated to sell.
• Wholesalers: Collaborating with seasoned wholesalers grants investors access to pre-screened property deals, streamlining the process and providing a reliable source of investment opportunities.
• Networking: Cultivating relationships with real estate agents, fellow investors, and contractors through networking events can unveil off-market deals and exclusive insights into potential flips.
• Driving For Dollars: By physically scouring neighborhoods for vacant or deteriorating properties, investors can pinpoint potential flip candidates that might otherwise go unnoticed.
• Online Platforms: Leveraging digital platforms such as real estate websites, forums, and social media connections can uncover untapped deals and connect investors with motivated sellers seeking fast transactions.
• Foreclosure Lists: Accessing foreclosure lists exposes investors to distressed properties, presenting the potential for lucrative short-term investments with added value.
• Probate Properties: Investigating probate listings introduces investors to properties owned by heirs who may be motivated to sell quickly, creating opportunities for favorable deals.
• Expired Listings: Examining listings that have failed to sell on the market allows investors to engage with motivated sellers and negotiate potential investment opportunities.
• Public Records: Thoroughly researching public records uncovers properties with tax liens, code violations, or financial challenges, opening the door to promising investment prospects.
• Word Of Mouth: Participating in networking events and local gatherings within the real estate community can yield firsthand information about potential investment properties as word spreads quickly in these circles.
• Online Advertising: Employing online ads or crafting a professional website can attract sellers seeking a swift property sale, connecting them with interested investors.
• HUD Homes: Exploring U.S. Department of Housing and Urban Development (HUD) listings grants investors access to budget-friendly properties that may be valuable additions to their investment portfolio.

Do You Need A License To Flip Houses In Mississippi?

Real estate investors do not require a real estate license to flip houses in Mississippi because house flipping is considered an investment strategy rather than a traditional real estate transaction. Flippers buy properties intending to rehab and sell them for profit, which falls under-investment activities.

Unlike licensed agents, who facilitate property transactions on behalf of others, investors are dealing with their properties; this distinction allows investors to engage in house flipping without needing a real estate license in Mississippi.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How To Flip A House In Mississippi With No Money?

Real estate investors venturing into house flipping in Mississippi can leverage the power of private and hard money lenders to flip properties without using their capital. Partnering with these lenders enables investors to secure financing quickly, offering a competitive edge in the market where swift deals are necessary. Utilizing other people's funds minimizes personal financial risk and facilitates the scalability of a house-flipping business. By focusing on securing funding from private and hard money lenders, investors can access the necessary resources to acquire and renovate properties, ultimately generating profits.

Wholesaling is another option for those new to house flipping who haven't mastered the ins and outs. Wholesaling involves finding distressed properties and passing them to other investors for a fee. The key advantage of wholesaling is that it doesn't require significant capital.

Investors don't need to own the property but act as intermediaries; this means they don't need to invest their money in purchasing or rehabilitating properties. Wholesaling allows investors to enter the real estate market and generate income while honing their skills before venturing into full-scale house-flipping projects.

Best Cities To Flip Houses In Mississippi

The best cities to learn how to flip houses in Mississippi include, but are not limited to:

• Jackson: Jackson offers a conducive environment for learning how to flip houses, with a vibrant real estate market attracting home buyers seeking affordable properties. The city's potential for profitable flips is enhanced by manageable closing costs and the availability of flip loans, creating a favorable landscape for novice and experienced investors.
• Gulfport: Just west of Biloxi and Ocean Springs, along the Gulf Coast, Gulfport presents a promising real estate investment opportunity due to sustained demand despite its median market value surpassing the state average. The city's vibrant market showcases the potential for profitable ventures in a region where housing remains sought after.
• Laurel: A short drive northeast of Hattiesburg, Laurel has garnered a lot of attention from investors for its affordable housing. Demand retains local housing activity, and affordability allows beginners to enter the scene without outrageous sale prices. Narrowly beating out Starkville and Tupelo, Laurel simply has the median home value buyers are looking for.

Final Thoughts On Flipping Homes In Mississippi

Learning how to flip houses in Mississippi has never seemed more opportunistic. The state’s relatively low home values ensure plenty of activity for investors to capitalize on. Following the seven steps listed above, even new investors should be able to break into the lucrative world of flipping houses in Mississippi.

Are you eager to learn how to flip houses in Mississippi? Don't navigate the complexities of the real estate market alone. Reach out to Real Estate Skills today for expert guidance and support. Our experienced team will provide the knowledge and tools you need to flip houses successfully in Mississippi. Contact us now to embark on your flipping journey with confidence and purpose.