Looking to Invest in Memphis, TN!

4 Replies

Hello BP Members!

In November 2017, my wife and I completed our first RE deal in DFW area. It was a full-duplex with 4/2 on each side. The deal was a great learning experience for us just getting started, and to date, we're sitting at about 4-5% COC ROI. Didn't knock it out of the park, but we are happy to be positive!

We live in Newhall, CA, so buy-and-hold deals are hard to come by, which is why we looked out-of-state. We have always been interested in Memphis, TN for an investment property, so that is where we are setting our sights next! We are looking to build our team out there (RE agent, property manager, possible contractors, etc.) and will be traveling in the next month or so to get a lay of the land. Before we head out, we are looking to make some connections. Any recommendations our there in the BP community?

Kind Regards,

Calvin

Would you have any interest in Desoto County, MS? It's directly south of Memphis and is a commuter community.

Memphis is a great market for rentals, but in many respects Desoto county is better. Memphis has some very cheap houses that can get decent rents in rough neighborhoods. I've had some success at that. However, outside the rough neighborhoods, Desoto is cheaper than Memphis real estate and has lower property taxes. Also, Desoto has better public schools compared to Memphis so that is a draw to many renters.

Memphis is great, but check out Horn Lake, Southaven, and Olive Branch in Desoto County as well.  Feel free to contact me if you need any additional information. My wife is a realtor and can help in either Mississippi or Tennessee.  

@Calvin Clark

i second @Sammy Paul comments. Desoto county is a great area. southaven and olive branch schools are rated very highly.

in Shelby county ( memphis) the better areas for investors are Cordova, East Memphis, Bartlett. you will hardly see any properties of these areas in marketplace. The best areas are Germantown and Collierville but very low cap rates. 

neighborhoods in memphis zip codes change street by street so please do your due dilligence before investing through wholesalers//MLS//Turnkey...

100% on what @AJ Singh said about things changing quickly in Memphis.  My favorite example of this is a street called Highland Park Place.  Google map it and start on the east side and just drive down the street (it's a very short street).  Highland is an area near The University of Memphis. 

On the east side, there are very nice homes.  You see some construction and remodeling.  Once you cross over Holmes, things hold on, it doesn't have as many mature trees and the yards don't look quite as nice, but it still looks fine.  Then you get to the end of the street and there are four dilapidated houses with tires stacked up in front of them.

I was trying to get one of the houses on the good side of Holmes once and got outbid so a realtor took me back to another house on the street that was for sale - it was near those four at the end. We didn't stay long.

Originally posted by @Sammy Paul :

100% on what @AJ Singh said about things changing quickly in Memphis.  My favorite example of this is a street called Highland Park Place.  Google map it and start on the east side and just drive down the street (it's a very short street).  Highland is an area near The University of Memphis. 

On the east side, there are very nice homes.  You see some construction and remodeling.  Once you cross over Holmes, things hold on, it doesn't have as many mature trees and the yards don't look quite as nice, but it still looks fine.  Then you get to the end of the street and there are four dilapidated houses with tires stacked up in front of them.

I was trying to get one of the houses on the good side of Holmes once and got outbid so a realtor took me back to another house on the street that was for sale - it was near those four at the end. We didn't stay long.

@Sammy Paul.  How is the rental market in Desoto County?