Folks - I am working with a TK provider for a property in the 38128 neighborhood in the Memphis, TN for about $90k. I cannot give the exact address on this forum but it is within the area below. Is this a good neighborhood for buying an investment rental and is the price in the right ballpark for a SFH 3/2? My Cashflow numbers indicate I need to acquire for lesser to make a reasonable monthly cash flow. So, I am interested in understanding how comparables in the area are priced. Can anyone in the Memphis area who knows the neighborhoods guide me? The school ratings are not good. So, I am not sure if there will be an impact on renting this out. Is this a safe area in general where I can expect to have it continuously rented out?
I don't know Memphis but 90k seems like a lot for that zipcode. I see homes on zillow for that zipcode for 5k-20k and they don't appear to need a lot to be livable. For 90k you could buy a home in what is probably a much better area with good schools and better economy.
@Jassem A. - I appreciate it. Can anyone else as well who is familiar with the area kindly opine?
Not sure why you cannot share the exact address, but you've posted to the correct site. Check out this link: http://www.city-data.com/zips/38128.html
City-data shows the prices floating near the 60k area back in 2014, and Memphis is not appreciation market. Meaning it seems 90k is too much. Of course without knowing the exact location, anyone with experience won't be able to help you because Memphis has many micro markets where the 90k price may not be unreasonable.
@Alexander Price Thanks for your response. Given that the sale is from a TK provider, the pricing will be near retail price.
it appears it's for sale for 57 on zillow, not 90. It sold last for 43.5. Seems like a fairly cute house but the neighborhood is a little questionable IMO.
THere are a couple of high comps in there but one over the road sold a few months ago for 17K. 90K is way too much for that area. You could buy in Cordova or Bartlett for that sort of money!
@Abdul $90k seems a bit expensive to me unless its located in Forest Lake or Scenic Hill. Just to give you an example we helped one of our clients secure a nice home at 3798 Wychemere zipcode 38128 for $46,000. The rent ready cost was around $7,000 and now have it listed for rent at a very conservative $800 a month. This is a great deal all day long, but most can't stomach long distance renovation hence the $90k price tag!
Based off what I am seeing $90k is too much...
folks - I appreciate all the valuable input. I will take this into advisement.
Way too much @Abdul Azeez
As a matter of fact, I have a home in cordova (101k)that I'm looking to sell that could easily bring in $1,250/mo.
Cordova(38016/38018) is a much better area to
Invest in. Of course the address of your purchase and condition will determine its value, but I don't see you paying more than 60k'ish in that area.
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