I was just curious for those investing in Memphis, do you have a minimum for the rent amount that you will purchase? For example I'm currently looking at a duplex that will rent for around $550 each. I know some property managers will have a minimum rent they will take on but do any investors out there have a minimum as part of their criteria?
I'm a little bit worried about quality of tenants at that price. Should I be?
Be careful of your property source. There are a lot of people trying to sell houses in Memphis with shocking values. Duplexes in Memphis are typically in rough areas. That doesn't mean these cant be good properties with good returns but just be careful of your source and the location. Personally, I stay away from duplexes in Memphis when it comes to buying and holding them. These lower end tenants in Memphis can be a challenge.
Best of Luck!
I’m sure there would be a scernario where I would make an exception. Any house is a good deal if the price is right. This would really depend on the zip code, price and condition.
From what I've noticed, once you dip below the 600 dollar range the quality of tenants drops off pretty quick. I know a local investor who only buys duplexes and he has great luck, but it can be very hit or miss with the tenants.
@Jeff Mills check out the Trulia crime map as an indicator. Several of the Memphis duplexes are in tougher areas to manage.