Memphis #1 investor market for the second year in a row

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Memphis #1 investor market for the second year in a row

Douglas SkipworthBusiness Member
Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes

Check out this BiggerPockets article showing Memphis as the #1 market for rent-to-price ratio for the second year in a row!

It's still a great time to be buying properties here (personally, I've added over 100 new units this year!).

Investor's Guide to Memphis Real Estate
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David Hutson
Rental Property Investor · Tampa, FL · Member since 2013 · 404 posts · 421 votes
9y

@Douglas Skipworth,

Thanks for keeping track of these types of articles for us investors out there.

David

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  • David Hutson
    Rental Property Investor · Tampa, FL · Member since 2013 · 404 posts · 421 votes
    9y

    @Douglas Skipworth,

    Thanks for keeping track of these types of articles for us investors out there.

    David

    1Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Douglas Skipworth Thanks for sharing this article.  Looks great!

    1Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    9y

    @Douglas Skipworth thanks for sharing! Every week I have investors in town looking at property and they are amazing at the value Memphis real estate has to offer. 

    1Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    9y

    Awesome read!

    1Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y

    Thanks for sharing this @Douglas Skipworth it is interesting to see. 

    when you mention that you personally added 100 more units, are they SFH in Memphis?

    out of interest what level of returns are you aiming for? ie. Gross rent ratio to purchase price and discount bellow retail after rehab. ?  i.e in NZ I buy minimum 7% Gross yield and 15% added value opportunity or bellow retail. 

    I would have thought been in the industry and local player you will have some good off market opportunities.

    Thanks in advance for sharing.

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  • Douglas SkipworthBusiness Member
    OP
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Hi, @Hadar Orkibi.

    Great questions!

    The unit breakdown is approximately as follows.

    24-unit apartment complex

    11-unit apartment complex

    1 triplex

    5 duplexes

    60+ single family homes

    All of these deals, which was probably 10 transactions, were off market deals.

    I am a buy and hold investor who follows the BRRR (Buy, Rehab, Rent, Refinance, Repeat) model. Thankfully, in almost all of these cases, I was able to skip the Rehab and Rent steps since they were occupied, professionally managed, and some type of owner financing/bank financing was in place.

    As for returns, since I oftentimes finance approximately 100% of the deal, the return is infinite.  However, I have to make absolutely sure that the rent income will cover all of the monthly expenses including principal and interest.  I am usually able to balance that through the purchase price and amortization period.  That said, I have a personal philosophy of never buying a property that I couldn't turn around and sell at the purchase price, which usually protects me from trying to stretch to a crazy amortization period.

    Hope that helps.

    Investor's Guide to Memphis Real Estate
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  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y

    Thanks @Douglas Skipworth, Interesting to hear that you purchased units in Memphis (MFH), so it can be done and probably worth doing. saying that, together wit few other Memphis based RE professionals on BP you have "unfair advantage" - which is fair enough, considering its your market.

    No money down with owner's finance in good location at good price is no brainier.

    Yes I also have this philosophy that you make your money when you buy and allays buy well so if you need to off load the asst you can sell it with small profit or no loss.

    Thanks.

    1Reply
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