I am looking at the following house with a turn key provider:
9338 Barrow Dr., Cordova, TN 38016.
The house will be rehabbed and rent ready. For those investors that know the Cordova market well, what would you say the market value of the house is?
To follow up on my post, how is the 38016 zip code? How has it been changing over the years? How about Cordova? Is it changing for the better or worse?
Most of the comps for similar age houses have a lot of comps in the 150 range, but there is one that sold for $179,000. There are newer developments selling in the 180 to 195 range, but I doubt those would be comparables since they are newer. I could see an appraiser bringing in 150, but I could also see one bring in 180. I don't card what any appraiser says, their is certainly subjective opinions that go into their valuations. Twice this year I have had FHA loans that require 2 appraisals come in within days of each other that are 10% apart. Just last week
BTW, if you buy again in the area, you should look at Germantown and Collierville. For those high price points, those are certainly the best areas to buy. Especially Collierville where the school system was recognized in Newsweek.
Unfortunately the area has gone down hill. Just like parts of memphis, it is hit or miss. Arlington is high end and hot right now. A few other areas like the university area are also coming back up. If you would like to ask about a specific address feel free to give myself or my staff a call or email us. Born and raised in the area and my family has been in the field since I was in diapers, well before that actually.
@Mark Moniz I think you're going at this backwards. You should know the market first, then look for properties. If you find a "sweet deal" first, you'll naturally skew your view of the market to make the deal fit.
I also find it interesting that you are looking at a house from a "turn-key" provider. If the provider is trying to sell you an investment but they're unable to demonstrate the value of the market, are they really trust-worthy?
I don't know you or your situation so I may be way off base but a lot of these turn-key providers see "CA" in your address and play you for a fool. How do you know they're telling you the truth about the home or the market? They are incestuous companies designed to make profit on the purchase, rehab, sale, and management of the home and will tickle your ears with everything you want to hear. If you're going to invest in an outside market, you should read "Long Distance Real Estate Investing" by @David Greene and find ways to protect yourself.