Looking for some help in the Memphis TN Area

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Looking for some help in the Memphis TN Area

David Dye
Real Estate Investor · Torrance, CA · Member since 2015 · 186 posts · 45 votes

Hey guys, 

I was looking at a few SFR properties in the zip codes of 38108, 38105, and 38111. They are all rented for about $700 and are being offered at about $25k each with deferred maintenance/minor rehab. Does anyone know if these are good areas or of this is normal for the area? Any help would be greatly appreciated!

Thanks in advance!
-David

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Derrick Craig
Memphis, TN · Member since 2013 · 969 posts · 524 votes
10y

@David Dye

If I were you I would make trip out to visit those houses and the areas in person... they are typically not the greatest of zip codes definitely C or D properties but it depends on the street and PM if you will succeed in these tougher areas.

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  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    10y

    @David Dye

    If I were you I would make trip out to visit those houses and the areas in person... they are typically not the greatest of zip codes definitely C or D properties but it depends on the street and PM if you will succeed in these tougher areas.

    3Reply
  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Hi, @David Dye.

    @Derrick Craig said it better than I could.  I agree with him.

    Best of luck to you!

    Investor's Guide to Memphis Real Estate
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    2Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @David Dye those are excellent paper returns.  As the old saying goes, "if it is to good to be true, it probably is."  The reality is, if the returns were that good, local people would be snagging that up, but us locals know these properties are a trap.

    901-848-9028
    2Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    10y
    I would have to agree 100% with Alex Craig it is better for you to get higher priced properties which in turn attract higher quality tenants which in turn makes management of the property much easier.
    1Reply
  • David Dye
    OP
    Real Estate Investor · Torrance, CA · Member since 2015 · 186 posts · 45 votes
    10y

    Thanks for the help guys! @Stephen Akindona @Alex Craig @Douglas Skipworth @Derrick Craig

    The too good to be true part is what gets me every time.  I'm generally a strong advocate of staying in state but I want to get my feet wet in something out of state. Being from CA, all out of state cash flows seem too good to be true for me (compared to my current rentals) Haha. I plan on flying out to see properties before buying anything. Any suggestions as to what to look for? I assume there are things I should be on the eye out for that may not be something I would look for here in CA. 

    What are some issues you thing I may run into with properties in a rougher area like the ones I mentioned? All tenants are section 8 and they are all currently occupied. 

    -David

    2Reply
  • Josette Reynolds
    Wholesaler · Baton Rouge, LA · Member since 2016 · 49 posts · 13 votes
    10y

    Hi David!  38105-Uptown, Harbor Town, and Down Town (very good areas); 38108-Berclair/Memphis Zoo area (decent areas); and 38111-Orange Mound area, unless there is serious development going on right now, not the best area. Heads up!

    Josette

    1Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    10y

    Anything for that sort of money has been passed over by a hundred wholesalers for a reason.  Run Forrest run.

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