Under $30,000 properties in the

13 Replies

Memphis,TN  and or  Desoto County, MS area ?

I have just ( as of today ) read a few threads on the forums here, on Investors who purchase Properties for an average  of $30,000  or less, and this really has peaked my interest and got me into searching for properties being sold for this price range , and within my area ( Memphis,TN and Desoto County,MS )

I was hoping that some other members on here , could help point me to Zip codes and or Neighborhoods that have properties in this price range, BUT , that also have low crime rates, as well as good Rent - to - Value ratios

Thanks s much, I appreciate it

@Michael Dunn

  well Michael what you seek does not exist in your area  end of story...

you can buy low crime rates in out lying little towns in MS or Ohio or INdy or even TN but not in a major metro area you will be buyuing in the worse areas with the highest crime rates.

You can find them in Dayton, Ohio market, but as @Jay Hinrichs states, lock your doors. 30K in Dayton will avoid the worst of the warzones. The better properties never hit the MLS though. And many warzone properties are listed for 30k and more.

You need to be VERY careful in that price range. I strongly suggest a personal visit to any area you're considering like that.

I don't do much in the smaller towns around, so I don't have any direct experience there to give you a comparison.

@Michael Dunn

There are plenty of cheap areas but understand that none of them are in good areas.  They are in the hood with high crime, vacancy, vandalism, poor paying or non paying tenants etc....   You truly want to stay away from this type of home for your sake AND safety!!!

Curt Davis, Real Estate Agent in TN (#00321765)
605-310-7929

@Darrin Carey

 I hear ya Darrin,,, I have done a bunch in Kokomo under 10k that are fine.. no issues at all

rents can be hard to collect consistently but you don't have the gang land warzone type of stuff you would have in any of the bigger cities at that price point.

Thank you everyone for your replies

This was an issue / concern I had, when considering purchasing properties under $30,000 in the Memphis area

I 100% agree that for properties in this price range.... that they are not in the best of neighborhoods

Since the idea of buying $30,000 and under properties is now out of the picture, what Zip Codes and or areas are recommended for houses with good rent-to-Value ratios in the $50,000 - $70,000 range ?

Any help and information is much appreciated

Thanks again

@Michael Dunn

I am sure you know Memphis TN is a high crime area, not just the so called bad zip codes or hoods. So don't think what you see or hear that happens in $30k home areas vandalism, high vacancy, tenants not paying there rent, that same scenario plays out in the $75k and up areas as well.

You are right down the street in Olive Branch I am sure you can drive up and see for yourself or have heard on the news about the crime in Memphis. Which happens everywhere not just in certain locations!!

@Derrick Craig

  my limpness test when I look at markets is a few things  and Derrick I agree with you.

1. Condenser unit caged 

2. any bar's on windows or security doors.

then you can use the on line crime reporting methods.. but those two above are pretty good indicators of the area your in...

Like here in Portland you would never see a caged condenser unit. I doubt anyone even knows what they are here or has ever heard of them.. newbies buying rentals in the mid west soon learn though   and yes it happens in most all price points... although with my A class in the best parts of Jackson MS  IE Madison and RAnkin county I have never caged one and one has never gotten stolen.. on my C and B class in Jackson ( I had over 200 of those babies) they were stolen with great frequency whether they were caged or not.. Along with the Electrical panels... water heaters.. HVAC system etc. 

Good luck with all.

Originally posted by @Michael Dunn :

Memphis,TN  and or  Desoto County, MS area ?

I have just ( as of today ) read a few threads on the forums here, on Investors who purchase Properties for an average  of $30,000  or less, and this really has peaked my interest and got me into searching for properties being sold for this price range , and within my area ( Memphis,TN and Desoto County,MS )

I was hoping that some other members on here , could help point me to Zip codes and or Neighborhoods that have properties in this price range, BUT , that also have low crime rates, as well as good Rent - to - Value ratios

Thanks s much, I appreciate it

 Investing is all about give and take and unfortunately your criteria is a bit of take and take.  Wanting to invest in the low price points, which obviously require fewer dollars out of pocket (risking fewer dollars) and wanting them in locations with low crime and high rent ratios may not be realistic.  It all depends on what you consider to be low crime and how high you want the rent ratios.  At the same time, depending on your crime criteria, you may be comfortable with an area, but the area and the properties themselves are going to be more challenging for you due to shorter occupancy timeframes and riskier move-out periods (i.e. its not the crime that raises your risk, but the more frequent and possible longer vacant periods when properties get vandalized).

Memphis is just like any other major city in America and there will be cheap houses available and there will be crime.  As an investor, especially one that @Derrick Craig points out is right down the road, you need to drive the neighborhoods in the city with properties priced below $30,000 and see what you think about investing in those neighborhoods.

Data from our property management company (managing 2,395 single-family houses):  

Property theft is actually down 1st quarter 2015 compared to same quarter 2014 by a little over 10%.  Minor theft and vandalism continue to be the majority of the occurrences including copper, line-sets, security door, broken windows.  We had 15 of those minor occurrences in the first quarter out of those 2,300 plus properties.  

I do believe the reasoning for these numbers is detailed renovation and management.  Little things like spotlights, cutting back shrubs and trees from in front of windows and doors, fences, locking gates, alarm signs, using cameras in some instances, caging AC units and placing the AC unit in the back yard behind fencing, using security doors in front and back and lastly keeping properties occupied.  All of that keeps theft and vandalism down.  However, I am not sure how well these details would work when applied to $30,000 houses.

As for the things you always hear about - AC units, furnaces, coils and water heaters.  We had 5 of each stolen from individual houses in the first quarter.  I would hardly consider that an epidemic of theft.

As for areas of town, we only operate in certain parts of the city - roughly 50% of the city today.  So, my zip codes are going to be slightly skewed.  

38128 - which is Raleigh - 20 total occurrences which was by far and away the most and a large increase year over year.  That being said, 11 of the occurrences were minor theft and vandalism.  But Raleigh did have issues with coils and AC units in the first quarter as well having 4 coils and 2 AC units stolen in the first quarter.  As much as it looks like theft is going crazy in Raleigh compared to the other zip codes, it is really a collection of minor items that has driven that number up.

38118 - Parkway Village  - Had 6 occurrences in the first quarter with a couple of AC units, a couple of coils, a furnace with 1 minor vandalism.

38116 - Whitehaven - Had 5 occurrences and those were 2 ac units, a furnace and 2 minor vandalism incidences.

No other zip code that we manage had more than one incident in the first quarter.

As for $30,000 houses, I think you can find some in each of these three zip codes, but again, I'm not sure these numbers would apply to those areas.

Hi @Chris Clothier,

The zip codes for Jackson, MS are 39206 and 39211 (low crime and higher rents and ROI). If I come across some deals in those area is it ok if I let you know about them?

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