Where to start?!

Question

I am finally ready to get in the rental property business. I currently live in East Memphis and want to invest in Memphis. I want to stick with properties that are less than $100k. I've found some neighborhoods that are around that price range but I've also found that there are a lot of other rentals in those areas.  Should I talk to some property management companies and see what areas rent the best and then concentrate on buying in those areas?  Or should I work with a real estate agent and find a property and then hope that it rents out amongst all the other competitors?  Or am I putting the cart in front of the horse and I should be doing something else first instead?  Thank you for any advice!

Alex Craig · Answer

@Sherri Li to answer your questions..........

Should you talk to PM companies. Yes, talk to 5.

Yes, Interview a RE agent. @Tina Sandoval could help you.

Talk to a Turnkey company too. I am bias, but I think TK can offer more cash flow through offering a better product. Properties on the open market are not set up for long term success for the most part.  Existing properties on the market always look better because they are priced better, but it is the hidden issues that will drain you slowly such as older HVAC systems and older roofs.

Interview enough people and you will figure out.

Douglas Skipworth · Answer

Hi, @Sherri Li.

Welcome to BiggerPockets!

You should connect with my colleague @Tina Sandoval.  She's very knowledgeable about all of the questions you have.

In the meantime, 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.

Best wishes to you on your journey to real estate investing success!

Curt Davis · Answer

you should learn more about the options for areas they fit your price range.  You have options but understand if you go with a realtor they might not know much about the rental / investment in our market.  If you go this route make sure to find who who is knowledgable.  Getting with a management company is a good place to learn more about market rents for select areas., you could also look into a turnkey option.  When you buy this way you will usually buy a home newly renovated.  If you get a realtor they usually only have access to homes listed on the MLS and many homes may not be renovated to your liking.

Good luck

Where to start?!

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