Investment in Gulfport of Mississippi - Posted by NewbieHouston

Real Estate Investing RV Parks
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Posted by Bill H on November 05, 2004 at 10:54:36:

  1. My friend told me there is an investment opportunity in Gulfport, and saying it is booming there. Booming is defined differently by everyone…3 to 4 percent growth is not booming to me.

  2. The investment opportunity is that it is a brand new townhouse, costs 130 grand. Wilh lumber cost of $2.97 per 2x4…130K will not buy much now-a-days.

3.My agent who handles the deal is making this as a package deal. I was told that the developer is going to get the mgmt company to take care of the property. She told me that the Hard Cafe Hotel is going to be open in Biloxi by next year, will bring in more people in this area. Probably, the employees of the hotel may be interested in renting the property, because it is pretty close to the hotel. However, I already found the new Hard Rock Cafe is about 8 miles from the townhouse that I am going to buy, it is not three miles away as the agent told me. …Typical sales hype…caveat emptor.

  1. My agent told me that the property is going to be a decent townhouse. More hype…never yet had and agent tell me “Buy this dump…it is a brand new dump.”

and it is going to be rented to people with decent income, such as hotel managers and so on… HYpe Hype Hype…is your agent going to guarantee the rental?

4.Please tell me how much I can rent it out and how easy. Do not know…every project stands on its own. I believe the current vacancy factor is about 10 percent.

  1. The address of the property is located at Cowan and Township Road, Gulfport. I was told it is a block away from the waterfont. On the corner of Cowan Road and Highway 90 (beachfront area) there is a time share apartment unit. Across the street is an RV Trailer Park, up just a bit north is a fire station and just a bit further north is the railroad tracks. Due to traffic congestion it was just widened to six lanes and I know of no signs indicating new construction.

  2. All the stuff you indicate your friend is telling you sounds like the typical speculative building hype to get the project off the ground. The gulf coast and Biloxi/Gulfport area has about 60,000 people. The only major industry is the casino industry. Do not expect a major change with the Hard Rock Casino complex. It will probably hire about 2,000 people…most of whom are already here. Casino employes go from job to job to job in most cases. The casinos have a very rigid hire/fire policy and if you do not comply to the letter…no job.

If you friend is will to foot the bill for the air fare/hotel/rental car, then take him/her up on it an come see for yourself.

Only you can decide for yourself if the risk/reward is worth is…to me it would not be…but… that is my personal opinion/feeling about it.

Good Luck,
Bill H

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Investment in Gulfport of Mississippi - Posted by NewbieHouston

Posted by NewbieHouston on November 02, 2004 at 12:31:12:

Hi, there:

I am going to invest in the Gulfport of Mississippi. I am going to buy a townhouse which is very close to the ocean beach. It seems like it is booming there now, hotels and casinos are being built there lately.

Before I made my final move, and I just want to know who is currently investing in that area, and can share their experiences with me. Thanks…

  • NH
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Re: Investment in Gulfport of Mississippi - Posted by Bill H

Posted by Bill H on November 04, 2004 at 14:13:01:

Cannot verify the info David spoke about. I know of no part of the Gulfport area that has grown at 17 percent. According th the Sun Herald Newspaper it is abut 3 to 4 percent.

The casino he spoke of has been on again off again for the past 12 years and is now in an off again stage. The casino industry has been up and down. There have been successes as well as failures and one or two of them are currently in bankruptcy.

Diamondhead is about 30 miles west of Gulfport and has been a “Work in Progress” since 1978 so I guess it is about to finish up.

If Hurricane Ivan had hit here instead of 120 east in Pensacola the county would have lost about $400,000.00 per day in revenues…that is a LOT to try and overcome. It was shut down 2 and one-half days from Ivan just getting close.

Two new highrise condo projects are still just large cranes sitting…one has just about built out. Is it sold or rented…not yet.

Housing varies from area to area. North of I-10 is now the growth area. Woolmarket and North Biloxi as well as North Gulfoprt are doing OK…all should be fine now until next hurricane season which starts in June.

Come on down…dip your feet in the Gulf. It is lots cleaner and nicer that the Houston Ship Canal.

Good Luck,
Bill H

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Re: Investment in Gulfport of Mississippi - Posted by DavidV

Posted by DavidV on November 02, 2004 at 17:12:50:

I live in Gulfport. There is a new casino proposed in Biloxi off of I-110.

There are mixed areas of hot and cold. Waterfront went up about 17% in the past 12 months. NEW condo builds are hot. Existing i am not real crazy about.

New builds in Diamondhead are selling before i finish them.

We have a club here. You can call me on my cell (343-9037) if you have any questions.

David

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Re: Investment in Gulfport of Mississippi - Posted by Bill H

Posted by Bill H on November 02, 2004 at 16:50:50:

Growth in the area is in the range of 3 to 5 percent per year.

There are NO new casinos being built.

I’d be very careful of buying a townhouse for a rental. There are lots of them already there.

Unemployment is about 5 to 6 percent. Lots of casino jobs at minimum wage…housecleaning and hotel work.

No other major employers in the area that I know of.

Hurricanes are a problem…Ivan almost came ashore here. Georges visited in 1998 and we are about overdue.

Rental vacancy I would estimate at 5 to 8 percent. Group out of Florida came in a few years back and built probable 1,500 to 2,000 units…saturated the market.

About 16,000 work for the casinos. They all start at minimum wage and work up. Most all get tips and if you are in the right place you can do well. The casinos have an absolute “No Call, No Show…No Job” edict…they hire and fire daily.

What else would you like to know?

Bill H

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Re: Investment in Gulfport of Mississippi - Posted by wes

Posted by wes on November 02, 2004 at 13:55:06:

Mississippi is not “a” gulfport.
Gulfport is a city on the coast of Mississippi.

I have no investments there but have family in the area.
The legalization of gambling in the 1990’s has really helped the coastal area. However, I do not think you are going to see any significant increase in casinos there because there seems to be an adaquate supply for locals and those visiting.

Therefore, not sure you will see any hugh appreciation, but you never know. Choose well and you will probably be rewarded.
On the other hand, there were many, many run down properties in the area that have been and are still being rehabbed. Not sure of what the suppy/demand picture is currently.

When the Casinos first were built and there was a large influx of new people seeking employment, you could rent out almost anything. Doubt that to be the case now.

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Re: Investment in Gulfport of Mississippi - Posted by NewbieHouston

Posted by NewbieHouston on November 05, 2004 at 02:59:17:

Thanks. Bill. I very appreciate your input. I already emailed to David to get more details, but I got no response from him.

Anyway, to be more precise, I am an out of state investor, and recently, my friend told me there is an investment opportunity in Gulfport, and saying it is booming there.

The investment opportunity is that it is a brand new townhouse, costs 130 grand, it has 96 units totally, and will be completed by April of 2005 for the first phase, and I am buying the first phase. I believe it is going to be my “buy and hold” if the figure is working out.

My agent who handles the deal is making this as a package deal. I was told that the developer is going to get the mgmt company to take care of the property. She told me that the Hard Cafe Hotel is going to be open in Biloxi by next year, will bring in more people in this area. Probably, the employees of the hotel may be interested in renting the property, because it is pretty close to the hotel. However, I already found the new Hard Rock Cafe is about 8 miles from the townhouse that I am going to buy, it is not three miles away as the agent told me.

My agent told me that the property is going to be a decent townhouse, and it is going to be rented to people with decent income, such as hotel managers and so on…

Please tell me how much I can rent it out and how easy. The property is about 1427 sq feet, three bedrooms, and 21/2 bathrooms, two story, no garage, there are two open parking spaces for the unit. I am so surprised that there is no garage coming with the unit. The most important thing that I want to know of is that I have no idea how the neighborhood looks alike, can you give me some ideas how the neigbourhood looks alike? and it is a good deal? I don’t want the townhouse is right next to slump or dumpyard. Since you are living in Gulfport, please make some comments, that way, I can have some feeling of the place.

The address of the property is located at Cowan and Township Road, Gulfport. I was told it is a block away from the waterfont. My friend really wants me to fly with him to Gulfport to take a look. However, I want to get input from this forum before I head down there.

You feedback is very much appreicated.