Memphis Multifamily Location
I am in contract on a multi family near St Jude. Its South of the 40 Interstate, and east of Danny Thomas Blvd. Its showing up as downtown in some areas and also showing up as winchester park on other maps.
Just wanted to get feedback from locals about the neighborhood. Currently about half of the units are rented at around 300/month. At such a low rate, what kind of demographics do we get? Do we have people who can't pay on time? Am I going to be spending all my money evicting people? What kind of crime rate? Etc...Any thoughts/feedback would be appreciated!
Harith Naga I invest in Memphis but I’m not an expert on this area. Typically a lot of multifamily in Memphis is in rough areas. What’s the purchase price?
Maybe someone like Curt Davis or Elizabeth Wilson could chime in on the area.
At those rental rates im guessing it’s a rough area.
Without having the actual address I can only give you basic opinions. This area is mostly rough and for only $300 per month the type of tenants you will get will typically be super low income and possibly have trouble paying.
My advice to you is that as long as you understand that there are more negatives then positives and this area is not that great, if you are willing to roll the dice then go for it but I could never sell anything like this to a client as I know statistically how this will go.
There will be zero appreciation and if you try to resell it will be difficult at best. I would be willing to bet the person selling you the property is praying you are not getting opinions like mine.
Good luck, dont say we didnt warn you !!
609 Exchange Ave...
@Harith Naga- I agree with Curt's assessment. That is a rougher area of town. I'm guessing 100% lower-end rentals in the neighborhood. It is not an area we typically invest in so I can't speak to that. Since it is such a high rental area, I'm sure other investors can give you feedback on that.
Thanks for the feedback. I am out in Cali, and everything is expensive out here. So 300/rent is unheard of. I will have to think long and hard before moving forward with this one.
@Harith Naga I've been recommended to generally stay away from anything <$800/mo unless you feel comfortable about the location. The tenants tend to be riskier (regardless of how good the deal looks). The location itself may be the tipping point.
Definitely a rough spot and the rents are another reason to shy away. I’m one to invest In not so desirable areas to some, but even this is below what I’d dabble in. Next!