Average Rental Time in Memphis
Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes
Average Rental Time in Memphis
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.
215 Replies
@Abdul Azeez I also have properties in Memphis. Trying to invest from afar is not easy but can be done. You are now in the window of opportunity where you can get a good paying tenant in. You can do it yourself. Please contact me so I can discuss how I got both of place rented. Time is of the essence.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Account Closed:
I am not a crest core client.
I visited their new office during my recent Memphis trip.@Dan Butler
and @Douglas Skipworth have been investing for long time in Memphis and would go extra mile to help with their knowledge and connections. I have been introduced to them by one of the top TK in Memphis.
As mentioned somewhere in the post OP has to look for the history of the house he purchased. BP community has provided all the help required.
Good luck investing
Vivek
Vivek - I am not sure what additional value you are articulating through this reply. You and I have exchanged messages before. Just because you went to Memphis and met a few TK providers does not mean anything when it comes to first hand experience on this topic.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Account Closed:
@Abdul Azeez - Message is loud and clear. Criticizing Memphis market and one of the most reputed PM is not solution to your problem. You can be wise or you could be intelligent. It's your money and your life move on and do whatever helps your cause.
You won't understand the value of visiting Memphis for one week every year for last three years. First read every page of this post and then send PM to the OP of the following post about the first hand experience.
https://www.biggerpockets.com/forums/311/topics/22...
Good Luck
Vivek
I am not here to argue with you. I have a situation and folks have been helpful in sharing their experience. Every person's experience is different. What I have here is just my experience in the Memphis market and folks have been supportive in helping with the same. So again I am not sure what the intent of your post is but as I said above I am not here to start an argument with you.
CrestCore - Property has 226 properties under $1000 per month on their website right now. How many of those properties are long time clients that probably have more than one listing. You're the low man on the totem pole. Who do you think the PM is going to work their hardest to make happy? I'm not bashing them as they have a good following here, but it's reality.
I don't know anything about Memphis except it has great BBQ, but if I owned a property there that hasn't rented in 3 months I'd get in my car and be there in the morning. I'd advertise it like crazy and have an open house this weekend.
When was the last time you visited the property?
When was the last time you had it "professionally" cleaned?
Have you talked to the neighbors?
Would you allow pets? I don't allow dogs but some properties allow cats and have good luck.
Is there a pit bull next door?
What about getting creative? Offer a rent to own program to attract a long term tenant.
I'd put my own Zillow ad up with a Google number and see what the real results are.
For sure, I'd consider another PM, and it looks like there are several here that are willing to help.
The pictures on Zillow look good and it looks like a nice home. You have been advised by a lot of locals that the rent's too high. There is a reason businesses advertise products for $999 and not $1050. For $50 a month you are missing the under $1000 market.
Good luck.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Bob B.:
CrestCore - Property has 226 properties under $1000 per month on their website right now. How many of those properties are long time clients that probably have more than one listing. You're the low man on the totem pole. Who do you think the PM is going to work their hardest to make happy? I'm not bashing them as they have a good following here, but it's reality.
I don't know anything about Memphis except it has great BBQ, but if I owned a property there that hasn't rented in 3 months I'd get in my car and be there in the morning. I'd advertise it like crazy and have an open house this weekend.
When was the last time you visited the property?
When was the last time you had it "professionally" cleaned?
Have you talked to the neighbors?
Would you allow pets? I don't allow dogs but some properties allow cats and have good luck.
Is there a pit bull next door?
What about getting creative? Offer a rent to own program to attract a long term tenant.
I'd put my own Zillow ad up with a Google number and see what the real results are.
For sure, I'd consider another PM, and it looks like there are several here that are willing to help.
The pictures on Zillow look good and it looks like a nice home. You have been advised by a lot of locals that the rent's too high. There is a reason businesses advertise products for $999 and not $1050. For $50 a month you are missing the under $1000 market.
Good luck.
Thanks Bob. Appreciate the feedback. You are right I am the small guy here.
- Memphis, TN · Member since 2013 · 969 posts · 524 votes9y
How long has it been on market?
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Derrick Craig:
How long has it been on market?
Derrick - I closed on Jan 10 and it's been actively advertised since Jan 23. We have lowered the price now to $1025 with first half month off which converts to an effective rent of $983.
My biggest takeaway from watching your experience, @Abdul Azeez, is to NOT invest OOS.....
Had this property been in your backyard, you would know exactly why it is renting or not renting.....
For me, mental and emotional well-being is as important as $$$... I would much rather spend my limited spare time on pretty much anything than stretching my head feeling at total mercy of some PM.......
Cut your loss and move back home.... I did it 5 years ago at $100K price tag and still my best decision ever.... @Account Closed left Detroit and his best decision.....
- Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes9y
Here is what I would if it was me:
1). Fly to Memphis and check out the situation
2). Fire the pm
3). Drop price by 10%, via Craigslist and sign on property.
4). Fly home that weekend with the place rented.
PMs do not have your best interests at heart.
- 9yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
I would think that the management company wants to get your house rented Bc if the home sits vacant they are not making any money.
Curt Davis - KAIZEN Realty538 Reviews Originally posted by @Abdul Azeez:
Originally posted by @Diane G.:
to your question of how long to wait, again, I don't know about Memphis, but I would imagine 1-2 months is normal.... Anything longer than 3-4 months is probably too long....
Appreciate it Diane. But just to be clear I did not go with my eyes closed. I researched the market and found that investing in NJ was not feasible due to high property taxes. Only when I found I couldn't invest locally I looked outside and based on research narrowed down on Memphis.
"Investing in NJ is not feasible..."
Umm, no. As an example, my own parents became millionaires several times over buy buying houses in northern NJ and holding them long term. They never real a real estate book, website, or ever did a single calculation on whether something would be a good deal or not. All with bad English and little effort.
You decided to invest in a market with little to no appreciation from one with appreciation and rent growth over the last 40 years? Sorry to be so harsh mate. But think about why you chose this strategy and move forward!
- Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes9y
Originally posted by @Abdul Azeez:
Originally posted by @Derrick Craig:
How long has it been on market?
Derrick - I closed on Jan 10 and it's been actively advertised since Jan 23. We have lowered the price now to $1025 with first half month off which converts to an effective rent of $983.
Do you really think your prospective renters in Memphis are calculating "effective rent"? You're delusional, my friend. All they see is the top line number. You're being priced out.
Don't be penny wise and pound foolish. A $30 rent difference ($1025 to $995) is $360/year in missed rent upside, but leaving a property empty for 3 months is $3000 you've missed out on.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Andrey Y.:
Originally posted by @Abdul Azeez:
Originally posted by @Diane G.:
to your question of how long to wait, again, I don't know about Memphis, but I would imagine 1-2 months is normal.... Anything longer than 3-4 months is probably too long....
Appreciate it Diane. But just to be clear I did not go with my eyes closed. I researched the market and found that investing in NJ was not feasible due to high property taxes. Only when I found I couldn't invest locally I looked outside and based on research narrowed down on Memphis.
"Investing in NJ is not feasible..."
Umm, no. As an example, my own parents became millionaires several times over buy buying houses in northern NJ and holding them long term. They never real a real estate book, website, or ever did a single calculation on whether something would be a good deal or not. All with bad English and little effort.
You decided to invest in a market with little to no appreciation from one with appreciation and rent growth over the last 40 years? Sorry to be so harsh mate. But think about why you chose this strategy and move forward!
I am not sure you know the background. So, I will clarify. It was a conscious decision to invest in Memphis. As an investor, I could look at cashflow, appreciation or both. While what you say is partially true in NJ based on historical patterns, prices are at an all time high and monthly cash flow after accounting for significantly high property taxes and PM fee is negative. So, I looked at Memphis where I went in knowing that appreciation is not expected but atleast cashflow was. What I am finding based on my experience is that cashflow seems nonexistent as well.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Account Closed:
Originally posted by @Derrick Craig:
How long has it been on market?
Derrick - I closed on Jan 10 and it's been actively advertised since Jan 23. We have lowered the price now to $1025 with first half month off which converts to an effective rent of $983.
Do you really think your prospective renters in Memphis are calculating "effective rent"? You're delusional, my friend. All they see is the top line number. You're being priced out.
Don't be penny wise and pound foolish. A $30 rent difference $1025 to $995) is $360/year in missed rent upside, but leaving a property empty for 3 months is $3000 you've missed out on.
You are probably right but this is the kind of f/b I would have expected from other channels if you know what I mean.
Originally posted by @Abdul Azeez:
Originally posted by @Andrey Y.:
Originally posted by @Abdul Azeez:
Originally posted by @Diane G.:
to your question of how long to wait, again, I don't know about Memphis, but I would imagine 1-2 months is normal.... Anything longer than 3-4 months is probably too long....
Appreciate it Diane. But just to be clear I did not go with my eyes closed. I researched the market and found that investing in NJ was not feasible due to high property taxes. Only when I found I couldn't invest locally I looked outside and based on research narrowed down on Memphis.
"Investing in NJ is not feasible..."
Umm, no. As an example, my own parents became millionaires several times over buy buying houses in northern NJ and holding them long term. They never real a real estate book, website, or ever did a single calculation on whether something would be a good deal or not. All with bad English and little effort.
You decided to invest in a market with little to no appreciation from one with appreciation and rent growth over the last 40 years? Sorry to be so harsh mate. But think about why you chose this strategy and move forward!
I am not sure you know the background. So, I will clarify. It was a conscious decision to invest in Memphis. As an investor, I could look at cashflow, appreciation or both. While what you say is partially true in NJ based on historical patterns, prices are at an all time high and monthly cash flow after accounting for significantly high property taxes and PM fee is negative. So, I looked at Memphis where I went in knowing that appreciation is not expected but atleast cashflow was. What I am finding based on my experience is that cashflow seems nonexistent as well.
I wish you the best, my friend. Keep in mind there have been many many moments in the last 40 years in NJ where prices were "at an all time high". That's because it's a profitable market.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
For what is worth, our properties inside the 240 loop are renting quicker then any other area of town. I know Abdul is having a tough time, but most do not. I personally own 21 and continue to buy in Memphis and Little Rock.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Alex Craig:
For what is worth, our properties inside the 240 loop are renting quicker then any other area of town. I know Abdul is having a tough time, but most do not. I personally own 21 and continue to buy in Memphis and Little Rock.
Thanks. Although this does not make me feel better it underscores the fact that the management on this leaves much to be desired.
- Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes9y
Originally posted by @Account Closed:
How long has it been on market?
Derrick - I closed on Jan 10 and it's been actively advertised since Jan 23. We have lowered the price now to $1025 with first half month off which converts to an effective rent of $983.
Do you really think your prospective renters in Memphis are calculating "effective rent"? You're delusional, my friend. All they see is the top line number. You're being priced out.
Don't be penny wise and pound foolish. A $30 rent difference ($1025 to $995) is $360/year in missed rent upside, but leaving a property empty for 3 months is $3000 you've missed out on.
100% agree, just market the property for rent, most tenants will not calculate effectual rents! A tenant is more likely to respond to an ad that says rent for $995 a month versus $1025 with a half month free rent, even though that is a better deal.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
Abdul, sometimes properties just sit for no reason. I once had a 6 month vacancy on my own home.
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Account Closed Exactly.. holding a home vacant for months trying to capture 50 to 100 a month extra is just penny wise and extremely pound foolish.
and more so in these rental areas your risk of a vacant home being broken into and having things stolen is very real.. not to mention all the money you lost with no rent
so your trying as a landlord to get 1000 a month when 900 would fill it.. but 900 does not match your goal of 200 a month positive .. so your stubborn.. 3 months 6 months go buy and now you lost 3 to 6k.... even if you can get the 1000 your out 6k it will take you SIXTY 60 months to get made whole instead of renting for 900 day one and being under market and maybe keeping tenant long term.
the risk of theft being real.. vacant houses are an extremely liability.
this makes zero financial sense other than wanting to hit a cash flow number and by god your going to do it even if you lose THOUSANDS doing it.. You have to justify why you did not just buy at home to get the exact same ACTUAL cash flow as what you think or blue sky profroma said you would get.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Jay Hinrichs:
@Account Closed Exactly.. holding a home vacant for months trying to capture 50 to 100 a month extra is just penny wise and extremely pound foolish.
and more so in these rental areas your risk of a vacant home being broken into and having things stolen is very real.. not to mention all the money you lost with no rent
so your trying as a landlord to get 1000 a month when 900 would fill it.. but 900 does not match your goal of 200 a month positive .. so your stubborn.. 3 months 6 months go buy and now you lost 3 to 6k.... even if you can get the 1000 your out 6k it will take you SIXTY 60 months to get made whole instead of renting for 900 day one and being under market and maybe keeping tenant long term.
the risk of theft being real.. vacant houses are an extremely liability.
this makes zero financial sense other than wanting to hit a cash flow number and by god your going to do it even if you lose THOUSANDS doing it.. You have to justify why you did not just buy at home to get the exact same ACTUAL cash flow as what you think or blue sky profroma said you would get.
Understood.
- 9yJay HinrichsBusiness MemberReal 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.
- Real Estate Investor · Monroe Township, NJ · Member since 2016 · 468 posts · 85 votes9y
Originally posted by @Jay Hinrichs:
@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.
Jay - in the interest of complete transparency I am a beginner to this and am very appreciative of all the f/b being shared.
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