Purchasing from afar, anyone know Memphis?

Question

Hi everyone,

I am looking to purchase a turnkey property in Shelby County and would love to send you the specific address (DM) if you are familiar with Memphis to get an experienced local's opinion on the neighborhood and what I am purchasing for the money. If you are familiar with the 38116 area code in Shelby County and could help me out please let me know. Thank you!

Alex Craig · Answer

@Douglas Skipworth For the most part, that is correct on me.  I like to add a layer that we focus on the 750 and above credit score tenant with 6x rent amount and only signs 5 year leases and take excellent care of the property.  O wait, nevermind, that is what I dream about.

Douglas Skipworth · Answer

@James Wise,

Great question, my friend!

Why don't you come down and see for yourself one day?  We'd love to have you here!

I believe we all overlap a bit, but there is definitely room in Memphis for all of us, especially for the companies that do business in AR, MS, and other counties in TN besides Shelby.

Of course there are always exceptions, but it is my understanding that @Alex Craig, @Curt Davis, and Chris probably have a rent floor (say $750) that they do not go under anymore.  And, I don't think they spent too much time on properties other than single family.

From what I can tell, Derrick and I (as well as James Martin and maybe @Stephen  Akindona) frequently go under $750 and are very willing to do small multifamily properties as well, which usually have rents in the $400-600 range.

Plus, the turnkey vs. the turnkey alternative separates us a bit.

Lastly, I'm not totally sure, but I think several of the guys above only manage property that they turnkey while others of us serve in a more traditional property management role (ie, taking on clients who have built or inherited their own portfolio).

There's a chance I've messed up on someone above.  If I did, I apologize and will gladly correct whatever I misstated.

Erik Nowacki · Answer

@Amir Kabiri I don't know the market as well as @Douglas Skipworth and @Curt Davis but I do have a multifamily property in 38116.  The area around my apartments seems nice, but it can change dramatically within a few blocks.  Unlike my other "home town," San Diego, Memphis is much harder to define by zip codes.  I see you are in LA, so you may have the same zip code mentality we have in San Diego. In Memphis you can have a boarded up shack a block away from a $500K mansion, so you can't shop by zip code; you need to have (your own or someone else's) actual eyes on the property and drive the neighborhood.  You're doing the right

Another very important point is to do your due diligence on your turn key provider.  Even if the house is nice and in a good part of town, it won't matter if your team is not good.  As in any market, there are solid and reputable providers, like Douglas and Curt, but there are also some providers who will do their best to separate you from your investment funds... Have you checked out referrals?  Have you asked about them here on BP?  Have you checked BBB?  RipoffReport Etc.

Do your due diligence on the property and the provider and I'm sure you'll be happy with your Memphis investment.

Erik

Alex Craig · Answer

Waiting for the pitch for Chicago............................................

Mike D'Arrigo · Answer

Those are called unicorns.

Douglas Skipworth · Answer

@Amir Kabiri,

We usually have an owner or two that has a small apartment complex (less than 20 units) for sale.  (Thanks for the shout out @Erik Nowacki!)

Like @Stephen  Akindona, I have also found @Derrick Craig to be a great resource for multifamily deals.

Stephen Akindona · Answer

I know that @Derrick Craig has sold smaller MFR through his turnkey system!

Haim Mamane Palman · Answer

@Amir Kabiri

Welcome to BP.

I wholesale and invest in Memphis and purchased and worked with several turnkey operators as out-of-state buyer and as a wholesaler. Please feel free to reach out and I will be happy to share with you my experiences and mistakes I made as a buyer. I'm not local but I have pretty good understanding of the Memphis market. You should definitely reach out to the local investors/turnkey operators/property managers  that posted above, they are all professionals and experts of the Memphis market. Good luck.

James Wise · Answer

@Amir Kabiri

No shortage of Memphis experts here on the site. I would check in with the following guys.

@Alex Craig

@Curt Davis

@Douglas Skipworth

@Chris Clothier

@Derrick Craig

How big is Memphis?

I always wondered do all of you guys work in a lot of overlapping areas of Memphis or do you guys have different areas you operate in?

Seems to have the largest amount of turnkey operators out of any city in the country. I don't know if that is the case or maybe just the largest amount of turnkey operators who are also on biggerpockets.

Alex Craig · Answer

@Amir Kabiri, your right!  Agree on your piece of rental property.  That would not be good for your cost to get the house for your next resident.

1. White House

2. Graceland

Purchasing from afar, anyone know Memphis?

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