California Investor - Memphis Dreaming (or KC, or Orlando)

21 Replies

Hello BP Community.  My wife and I have a few rentals in Northern California that we have done well on, but things are just too hot out here now.  I can't find anything apart from a few auctions that might pan out, but still hard to pencil out as a rental.

So I'm looking out of state for buy and holds, like a lot of other REI folks from Cali.

My wife and I have zeroed in on Kansas City, Memphis, and possibly Orlando as cities to invest in.  In all three we have friends and/or family that live there, and we would be more than happy to spend time in these cities either rehabbing properties, checking in on our investments, or just spending the weekend there having fun checking out real estate.

Since we haven't decided on which city yet, I thought I would throw it out there to the community and try and network as much as possible in each one.  

Anybody from these cities that are investors, we would love to meet you next time we are out for a visit.  

Anybody doing out of state investing in the cities, we would love to hear about your experiences.

Thanks very much for your insights!  

Orlando is a great place to invest in. I am a full time Rehab investor and Realtor as well, and while it is becoming difficult to find flips, I come across buy/hold properties quite routinely which I share with other investors. I just did a brief report on Orlando ("You don't know the half of it") recently for a foreign investor. If you would like a copy, please fell free connect with me and send me your email address (can't send attachments in BP's mail system). Just met an investor who traveled here (from Vegas) and showed him the Orlando area; he was taken aback by how different it was from his perception.

Hi, @Wesley Meilandt .

Welcome to BiggerPockets!

Be sure to check out the blogs and podcasts as well as the forums.  You can learn a ton from the real estate experts on the site.

Here are two recent articles about the Memphis real estate market that you'll enjoy.  

It's still a great time to be investing in Memphis (I just bought another rental property two days ago myself!)!

http://www.realtor.com/news/trends/top-10-real-estate-markets-to-watch-in-2016/

http://www.commercialappeal.com/news/rents-rising-home-ownership-falling-in-shelby-county-census-figures-show-2615f61f-aa99-1bd6-e053-010-360622001.html

Best of luck to you!

@Wesley Meilandt  Like Douglas, I just added to my portfolio this week in Midtown Memphis and 2 in Little Rock, Arkansas.  My cash flows are better in Little Rock, but those are all "B" class.   My focus for my own portfolio is primarily "A" class deals in Memphis and "B" class deals in LR.  However, most of our clients buy in the 75 to 100k space of "B" class properties in both markets.  I already have enough B in Memphis and the A makes sense for what I am trying to accomplish with long term goals.  I am early in my stages of my Little Rock portfolio, so "B" class make sense.

HMMM... World Series Champs, or World's Best Bar B Q, or World's Best Amusement Park!!!  I pick Bar B Q!!! LOL... @Wesley Meilandt I am just kidding all three of those cities are good choices for real estate investing, especially since you are willing to get your hands dirty and possibly help on the rehabs etc.

As far as my choice and I am a bit bias I would say Memphis since I was born and raised here it only makes sense for me to invest here. Great for Cashflow!!

welcome to BP. I'm also from CA and invest out of state primarily in Memphis and Indianapolis. There are great turnkey companies in both places (I purchased turnkey properties in Memphis myself) and I know there great companies in the other markets you mentioned. Obviously there pros and cons to buying from turnkey companies. If you want to get your hands dirty the "Turnkey Alternative" may be a good option for you where you buy discounted properties with equity at wholesale price and to work with reputable property management company to do the rehab and manage the property for you. 

Good luck!

@Wesley Meilandt

Of course we are all partial to our own markets we are located in or offering property in.  Are you looking for a turnkey company/experience?  You surely have several options and companies to select from.  All that really matters is you go with who you feel most comfortable.  If you can make a trip to the market you suggest and visit with the different providers, that is the best way to get a feel for not only the city and neighborhoods  but also the provider.  You can be told anything online until you actually come take a look for yourself!! 

Good luck in your search, let us know if we can offer any assistance. 

Welcome to BP, @Wesley Meilandt . I am also from CA and would love to follow the discussions to looking into another market in the country for the same reason as you are. 

@Alex Craig when you mentioned "A" class and "B" class deals, are you referring those "A" class deals as turnkey property and "B" class deals as properties which require a little bit of rehab?  

Originally posted by @Douglas Skipworth :

Hi, @Wesley Meilandt.

Welcome to BiggerPockets!

Be sure to check out the blogs and podcasts as well as the forums.  You can learn a ton from the real estate experts on the site.

Here are two recent articles about the Memphis real estate market that you'll enjoy.  

It's still a great time to be investing in Memphis (I just bought another rental property two days ago myself!)!

http://www.realtor.com/news/trends/top-10-real-estate-markets-to-watch-in-2016/

http://www.commercialappeal.com/news/rents-rising-home-ownership-falling-in-shelby-county-census-figures-show-2615f61f-aa99-1bd6-e053-010-360622001.html

Best of luck to you

Thanks @Douglas Skipworth for the links.  Memphis definitely looks like a great place to invest right now.  We'll keep our eyes and ears open.

Kansas City has some great numbers plus it's a really great city.

There are a lot of great people that have deals here on BP.  For example.  I took at look @Mike D'Arrigo  properties and his seem to be in decent working class areas. 

As always I caution to do your home work on every deal, even if you might be buying one from me, just to make sure that what you have in mind is what your seller or realtor understood you to want.  Many times a deal goes south because what the buyer wanted and what those selling understood them to want did not match.  does that make sense?

@Kim Tucker it definitely makes sense what you're saying. Seeing the response from the other members here is a good first way for us to begin narrowing down our search for homes. I know that generally we like SFH's in suburban areas around cities, but we will need to be making trips out to KC and Memphis soon to have a look around for ourselves.

@Wesley Meilandt plan your visit to KC around the 2nd tuesday of the month and hit the MAREI meeting - there should be 100 to 150 people in attendance for you to network with from 6pm to 7pm and then after the presentation at 9pm.  Great way to talk to a lot of different people, maybe vet a few areas and names with several different people.

@Wesley Meilandt and if you hit the MAREI meeting, there is another group - Winvestors that meets the next morning (you can find them on facebook) in a smaller venue with a few less people for making even more face to face connections - you might even meet a few people from Bigger Pockets there.

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