Is that the Renter's Assistance Program Money for Go-zone areas? If so, then I'm sure you understand the program, but for the board...
What's going on in the Gulf Coast...basically real estate professionals can receive a 50% tax break via accelerated depreciation and now Uncle Sam will give you a non-recourse loan of $30k at closing if you as an investor a) have a house built b) put that house into a rental program for 5 years and c) maintain a reasonable rent (approx $1250 for a 3/2). And with a purchase price in the $150k range, these will cash flow on a Stated investor loan at 90%LTV. Buyers basically get:
a) About a $60K write off that they can carry back 5 years or forward 10
b) Positive Cash flow around $250 a month depending on credit
c) $30K check from Uncle Sam that doesn't have to be paid back
d) A purchase in one of the fastest growing markets in the Nation - MS is on pace to see about 17% appreciation this year in the midst of a flat to slightly negative housing market
Those four reasons led me to buy 2 properties that will be built later this year. Outside of the Pacific NW which is also seeing double digit growth, the Gulf Coast is the best real estate market in the country. It's booming because its the largest tax break for real estate investors in the history of our country. And now they give you cash to.
So again, if someone at HQ says they are having trouble financing or selling these homes in MS, they need to get some professionals in there to help them. and no it won't be me. I'm too busy as it is. Now if they let us do the front end financing, become a preferred lender and pay us 22% on the net sales price, well I might make the time...for cash.
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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