Out of state investing in Memphis

Buying & Selling Real Estate
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Out of state investing in Memphis

Andrew CoenPro Member
Rental Property Investor · Boston, MA · Member since 2019 · 19 posts · 20 votes

Hey everyone,

I am a fairly new investor living in Boston. I bought my first 3 family in the Providence RI area back in June. The market is really expensive and I’m want to try an out of state deal in Memphis, TN. Looking for advice on neighborhoods to look in, and stay away from. Also looking to connect with agents, property managers, and lenders. I appreciate any advice I can get. Thank you and happy new year!

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Dean HarrisBusiness Member
Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
5y

Cash flow in Memphis is awesome and the price to rent ratio is really good. My portfolio had a great year in Memphis!

CrestCore Realty4.713 Reviews
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  • Bradley Scruggs
    Investor · North Kingstown, RI · Member since 2015 · 65 posts · 33 votes
    5y

    @Andrew Coen RI is a very expensive market, I agree, that's where I'm currently at. I wish you the best with finding a Tennessee property. My friend from HS went to college in Knoxville, beautiful area. Depending on what your niche will end up being, college students could be a good source of income plus you can do summer rentals.

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  • Andrew CoenPro Member
    OP
    Rental Property Investor · Boston, MA · Member since 2019 · 19 posts · 20 votes
    5y

    @Bradley Scruggs that’s great to hear I appreciate it. Saw some things I like and would be able to get into properties a lot easier to build my portfolio and cash flow. I still want to invest in RI but just trying to make deals instead of waiting to save the necessary amount. Are you looking for any deals currently? 

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  • Bradley Scruggs
    Investor · North Kingstown, RI · Member since 2015 · 65 posts · 33 votes
    5y

    @Andrew Coen

    I understand that. I think that is a good way to go about it, big thing I have realized from doing some research on out of state investing is that you have to vette the Property Management company. You do not want to get burned down the road, especially with you being 1100 miles away. I've looked into turn key property companies but just haven't pulled the trigger.

    I look for deals all the time, kind of stopped looking midwest and started doing letters to owners of off market properties I would be interested in. Not to much luck but I have acquired a large list of multi families in the area and just keeps building weekly.

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  • Timothy Lewis
    Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    Check out the article below. It will provide some guidance on vetting PM companies.  Also, I highly recommend reading/listening to David Greene's book on Long Distance RE Investing. GOLD MINE!

    Good Luck!

    1. https://www.biggerpockets.com/...
    2. https://store.biggerpockets.co...
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  • Mike MoseePro Member
    Investor · Eagle Point, OR · Member since 2011 · 184 posts · 121 votes
    5y

    Hi Andrew

    We've invested in Memphis for several years & use Mid South Home Rentals in Arlington successfully.  Depending on the amount of your investment, setting up a Tennessee entity with registered agent will be an important step in that process.

    Best of luck

    Mike

    0Reply
  • Danny Price
    Investor · Location Independent · Member since 2018 · 21 posts · 19 votes
    5y

    I invest in Tennessee, but haven't looked at Memphis. I'm curious, what do you like about it? 

    0Reply
  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Cash flow in Memphis is awesome and the price to rent ratio is really good. My portfolio had a great year in Memphis!

    CrestCore Realty4.713 Reviews
    View Page
    3Reply
  • Mike MoseePro Member
    Investor · Eagle Point, OR · Member since 2011 · 184 posts · 121 votes
    5y

    Renters to owners ratio is favorable. Economy is well rounded. Purchase prices in C to B areas allow for decent ROI. Appreciation not as great as other areas of country. MUST have boots on ground as good versus bad areas fluctuate block to block. Crime rate far exceeds national average

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  • Sean Tagge
    Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    5y

    I'd be happy to share with you a video I made explaining the areas of Memphis on a Map very informative. Also my thoughts is try to buy in the higher end one you will likely have more appreciation two you have fixed costs time and effort associated with just buying a property no matter what the price you buy it at. 

    0Reply
  • Jamie Hart
    Richmond, VT · Member since 2016 · 3 posts · 1 vote
    5y

    @Sean Tagge

    I’d love to see that video! I’m also curious about this market.

    0Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    5y

    Cashflow in Memphis is great! It would nice to add it on your portfolio. There are a lot of renters in Memphis. 

    0Reply
  • Andrew CoenPro Member
    OP
    Rental Property Investor · Boston, MA · Member since 2019 · 19 posts · 20 votes
    5y

    Sorry for the late response, but I appreciate everyone on their insights! I work about 100 hours a week so thats one of the main reasons I want to grow my cashflow! haha

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