Memphis? Memphis. Memphis!

60 Replies

What's up with Memphis? Hey BP a friend pointed me in the direction of Memphis and said that it is where I should be looking at my next round of investment properties. What should I expect in Memphis? What cap rates I should be shooting for, price points, appreciation and cashflow are expected?

I live in San Diego and my last round of properties I bought back around the 07-08 time frame were in NC, TX and CA. I'm looking for cash flow on this go around.

Any insight would be greatly appreciated. 

Hey Chad. I'm new to the real estate myself but from what I've heard so far is that Memphis is a great cash flow town and not so much on the appreciation side of things. So it is a city that may very well be in line with your currents goals. As for cap rates, I've seen between 7-13% so far.

you will find that there are many companies here who would be willing to assist you.  Make sure to check them out and narrow it down to the ones you feel comfortable with and who are in line with your goals. 

Good luck

Thanks for the feedback guys. Any recommendations on who to connect with?

@Chad Baird I'm also in the Cardiff area.  Been wholesaling in the Memphis area for a few years no rentals out there.   I can send you some zip codes that we mainly have targeted in the past if you wish.  Best, Michael 

@Chad Baird I'm a RE Investment Broker in Memphis, TN and my team would be happy to assist as your "boots on the ground" if you have a property you would like for us to help analyze. 

@Chad Baird hi chad. I'm an newbie investor from LA, and like you, was turned on to Memphis as a potential area to invest in. It's been a couple months since this was posted. I'm curious as what you found out. Have you added anything to your portfolio from Memphis? I'm close to finding something but getting newbie cold feet as to whether it's a good deal.

I've got 350 homes in the pipeline that will most likely be broken down into sub-portfolios. These probably won't come to market until Q2. Let's stay in touch if you want to buy based on the income approach.

@Michael Reilly I would like to get some insight on the market in Memphis.  Live in OC and looking in TX and TN for buy and hold, cash flowing properties.  

My partner and I are looking for Commercial Props...4-10 Units to start and then into larger props 10-24 units.  Is this something you have a handle on and we could work together in the future or do you only deal with SF props.

Let me know.

@Brian Hester If you are ever in the San Diego area let me know grab coffee.    To be honest we really have only been doing houses so I may not be the best contact for you.  But I do know @Tina Sandoval and I have shared some deal flow with her in the passed and she and her partners are very knowledgeable and I would suggest you reach out to her !!  

@Chad Baird my business partner @Duran Villegas and I have had good opportunities in the Memphis area - we certainly have to do our homework, but there are some diamonds in the rough. 

@Brian Hester we are also actively looking for commercial property in the Memphis area. So far, we've been successful with acquiring 1-3 unit properties with the help of @Tina Sandoval and team. We are building a network of local investors that are very interested in this market, and we're on the hunt for more 1-3's and larger multi's. Since you're in Orange County area - we should meet up sometime to see how we can collaborate.  @Mark Allen  @Michael Reilly and @Tina Sandoval please keep us posted!

also living in San Diego and an looking in the memphis area.  I've been looking at TK investors but thinking that they skim quite a bit off the top.  

If anyone has connections with property management or zip codes I would really appreciate it. 

Cheers!

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Welcome! Memphis. Is. Amazing! Cash on cash returns are nearly unbeatable!

Good luck!

Welcome to Tennessee!  It's a wonderful place to do business!  Let me know if you have any questions. 

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@Jacob Mariant - Obviously, I biased but I love the Memphis market for investing.  "Good zip codes" are tricky to recommend.  Even in the zip code where I live, there are pockets that I wouldn't own homes.  Also all investors have a different idea of "good".  Honestly your best bet is to work with a rockstar agent and come visit.  I'll message you my agent recs.

Keep us posted, when you come visit!

Originally posted by @Jacob Mariant :

Hi All! I am new to BP and have the same questions about Memphis area. I live in San Jose, CA, and I am looking at acquiring rental properties in Memphis. Can anyone recommend a few good zip codes or neighborhoods, either in Memphis or the suburbs? I have been doing quite a bit of homework and as of right now I am looking more towards the suburbs of Memphis, including Bartlett and Germantown, among others. I am mostly looking at single family, but considering multi-family.

I am also in need of a real estate agent in the Memphis area. Any recommendations on that front? 

Thank you in advance!

Jacob

Welcome to BP Jacob and glad to know you are interested in the Memphis market! It is definitely a unique market here! It does require some knowledge of the city, streets and area. As Elizabeth stated, "good" zip codes can still have their streets that you may want to look further into before investing. I always recommend to out of state investors to use Google Street View to circle the block and check the streets on each side. One street may look nice, but the street behind it could be a questionable area or there may be an apartment complex directly behind it. 

Some investors have great success in areas that others tend to steer clear of such as 38127 or 38109, both of have their merits.

The suburbs are indeed a safe bet, but the price ranges are considerably higher than what Memphis is known for. You also have to find the sweet spots as some suburban areas are too far out from the city in a rural area to be a solid rental.

If you have any questions, please feel free to reach out!

Originally posted by @Elizabeth Wilson :

@Jacob Mariant - Obviously, I biased but I love the Memphis market for investing.  "Good zip codes" are tricky to recommend.  Even in the zip code where I live, there are pockets that I wouldn't own homes.  Also all investors have a different idea of "good".  Honestly your best bet is to work with a rockstar agent and come visit.  I'll message you my agent recs.

Keep us posted, when you come visit!

 I agree with Elizabeth re: spotty zipcodes. My wife and I found that the best indicator of a neighborhood's risk factor from an investor's point of view was copper theft. If someone felt that they could go through a house and remove all the copper without the neighbors noticing and get away with it, then that was a neighborhood we were not so interested. That being said, we love Berclair, and one of our best deals was a house there where someone helped themselves to half the electrical wiring after we closed. Huh, I wonder why the lights suddenly don't work on this side of the house, but worked during the walkthrough... life is a learning process.

I am a Californian who thinks his state is overpriced!  I am interesting in learning about investing in Memphis.  How does Memphis compare to Nashville

Memphis does not compare to Nashville Bc they are completely different. You can not find the cash flow homes and price points in Nashville like you can here. Nashville is super hot and ppl are paying top dollar for more expensive rental homes. 

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