Average Rental Time in Memphis

Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes

Folks - I am in the second part of my journey of investing in Memphis. I closed on a property on Jan 10 in Memphis. Property management has been turned over to Crestcore. The listing is at the following location:

http://www.zillow.com/homedetails/7942-Marsha-Wood...

I am looking for some input on the rental market in Memphis and how long it usually takes to rent a property. SInce its been a few weeks now, I am wondering if I should be doing something differently to generate more interest and a real tenant to be able to generate cash flow. Would appreciate input.

Regards,

Azeez

1 Reply

1,199 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

@Abdul Azeez I learned this the HARD WAY out in the mid west...

much better to have lower rent and filled unit.

than risk kids breaking in an stripping your home. taking your condenser unit.. ( even if its caged)

I have 3 rentals left in the south.. I have not raised rents since the day I bought them 10 years ago.

but one tenant has been there the entire 10 years.. they were new homes so cap ex has been next to zero. granted I am probably 100 to 200 under market.. but what is 100 a month more going to do for me.. its about the long game and having your tenants payoff your house for you.

I know people talk about cash flow as real and appreciation as icing on the cake.. in my mind cash flow is the icing on the cake.. if you get it great but if your tenant is paying your house off that to me is the ultimate goal.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

7 Reply

See this reply in the discussion

215 Replies

Jump to latestLatest

Sort by

Chris Harkins
Residential Real Estate Broker · Memphis, TN · Member since 2015 · 84 posts · 60 votes
9y
@Abdul Azeez
How long ago did you turn the property management over to them? I use Crestcore myself & have found that they do a great job.
Keep in mind with this time of the year, a lot of people are waiting on their tax refunds to come in before moving since it a decent chunk of money for them to come up with to move.
1 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
You should listen to what your management company says. I would think they are doing everything they can to get a tenant so I don't think there is anything for you to do. I will look your home up and pm you.
Curt Davis - KAIZEN Realty538 Reviews
Website View Page
2 Reply
Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
9y
Hey Abdul, congrats on your recent purchase! I personally know the guys over at Crestcore and I believe you couldn't be in better hands! @Douglas Skipworth and his partner Dan are standup guys! This is a tricky question because there are a lot of factors at play. How much have you priced the rental, what time of year are you offering the rental, what is the condition of the property and etc...I have found that for me personally it takes anywhere from 2-4 weeks for me to get my properties rented. If I haven't found a qualifying tenant after 4 weeks I start to think maybe I have it priced too high. I always price my rentals a little higher than market to start off with as well. Don't panic, Crestcore has a very intensive screening process so that they place a great tenant so I am willing to bet there have been several who have wanted to rent and maybe not passed their screening. Try to hang in there, it will get rented!!
2 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Chris Harkins - Zillow shows we advertised 28 days back. So, I am just wondering about real stats in Memphis for average rental lead time. How long did yours take to rent?
@Curt Davis - Thanks.
0 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Stephen Akindona - The rental is priced at $1115. Its been about 4 weeks. So, getting a bit nervous. There have been only 2 applications and 11 visitors. So, I am just trying to understand if there can be anything done to increase the traffic and applications.
0 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
Abdul,
I think you are asking far too much for your rental. Also my personal opinion is that attached homes are far less desirable then a detached SFR. Looking on rentometer.com it appears your rent is in line but I think it might be off and taking into account actual detached homes as opposed to attached ones. You might consider lowering the rent to $950 and see what happens.
Signs in the yard and Craigslist are probably the 2 best forms of advertising in our market.
Good luck
Curt Davis - KAIZEN Realty538 Reviews
Website View Page
0 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Curt Davis - Thanks. I did use rentometer as well as consulted with my PM before listing the rental. If my PM advises me to lower the rent, i could certainly consider it as long as its above my threshold at which the investment works. That threshold is certainly not $950.
0 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
I dont see this place renting for anything more then $1,000 at best but I could be wrong. I personally think you should have stuck to the types of homes that most TK providers sell and attached one are not it. At least not in our market.
Curt Davis - KAIZEN Realty538 Reviews
Website View Page
4 Reply
Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
9y
Try reducing to $1050. I would say after 4 weeks you want to do something different.
1 Reply
Alexander Price
Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
9y
@Abdul Azeez
Beautiful home. I was trying to rent a rooms on Craigslist one time and the dropping the price $50/month got me more hits in one day than I had the previous week. Granted it wasn't TN. I would listen to @Curt Davis and @Stephen Akindona and consider even a nominal price drop. For renters, $20.00 is a lot sometimes.
0 Reply
Franky Aikens
Wholesaler · Philadelphia, PA · Member since 2016 · 124 posts · 81 votes
9y
Hi @Abdul Azeez!
Have you tried speaking with landlords that are renting homes similar to yours in the general area? They may be able to give you some insight. Sites like a rentometer.com and zillow.com are great but speaking with those are doing what you are trying to do can be a bit more valuable. Think about it. Best of luck!
0 Reply
James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
9y
@Abdul Azeez try posting on FB resale sites. I've had some luck on these sites AND its free!
0 Reply
Diane G.
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Abdul Azeez
I looked up all the for rent in your neighborhood and I do NOT think your price $1,115 is high... However, I feel there are plenty other choices if you want to speed a little less like $950, and there are many other good choices if you want to spend a little bit more like $1250....
It is just a matter of waiting for someone that wants to spend $1100.....
0 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Diane G. Thanks. I agree with your analysis that the price is not high. Even if it was, I would be open to recommendations from my PM and I would need to run it against my financial model to see what makes sense. However, it was priced initially based on input from my PM. So. I am waiting right now for f/b from my PM.
0 Reply
Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
9y
Originally posted by @Abdul Azeez:

Folks - I am in the second part of my journey of investing in Memphis. I closed on a property on Jan 10 in Memphis. Property management has been turned over to Crestcore. The listing is at the following location:
http://www.zillow.com/homedetails/7942-Marsha-Wood...
I am looking for some input on the rental market in Memphis and how long it usually takes to rent a property. SInce its been a few weeks now, I am wondering if I should be doing something differently to generate more interest and a real tenant to be able to generate cash flow. Would appreciate input.
Regards,
Azeez
Average vacancy durations for that street can be found at rentfaxpro.com. Good luck!
2 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Matt R. Thanks
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Abdul Azeez - We use @Douglas Skipworth and Dan at Crestcore for our rental and couldn't be more pleased with the tenant they found (she's been there for 3 years now!). If you are considered, I'd talk with them directly. They want your property rented just as badly as you do and I'm sure could offer you suggestions, if you call them. Good luck!
0 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Elizabeth Wilson - Thanks. How long did it take for your home to get rented?
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Abdul Azeez - I don't 100% remember but am sure it was less than a month. It's in 38108. North of Rhodes College
0 Reply
Diane G.
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
PM is only part of the game, the other part of the game is market competition.... How many comparable properties are for rent in the nearby neighborhood?
When I looked about an hour ago, lots of for rent homes in all spectrum of prices.... That is the issue here....
I learned this through watching my friends who bought in Vegas.....Oh boy, so hard to find a tenant there as the whole town was bought up by investors...
1 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Diane G. - Thanks. Makes me reconsider my Memphis investment strategy. I was hoping to build out a real estate portfolio. Will wait and watch to see if that's a feasible option or if I should stick to my mutual funds.
0 Reply
Diane G.
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Abdul Azeez
No problem...out of state investing is definitely hard, what you are experiencing here is nothing yet....
I tried before, gave up after $120K loss, but just me... Some people are successful doing it, just not me...
0 Reply
Abdul Azeez
OP
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
9y
@Diane G. - Thanks. Sounds very encouraging :(
0 Reply
Douglas SkipworthBusiness Member
Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
9y
Hi, @Abdul Azeez.
I passed this post along to the property management team and they are going to look into it for you tomorrow. You are always welcome to contact them directly. Please send me a private message if you don't have their info.
Investor's Guide to Memphis Real Estate
View Page
0 Reply
Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
9y
Location is good @Abdul Azeez but buying attached home at that rent is really limiting your rental pool. Anything over a grand a month in Memphis is big money. If you can afford that rent you probably want your own yard. Stick to Single family homes you will have less vacancy for sure.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.