Memphis zip code 38111

Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes

I was looking at the market place and I saw a couple of homes in there. One for ~46k and another near ~80k if I recall correctly. Looking at the data here: http://www.city-data.com/zips/38111.html it seems the 2014 Q3 median hose price for that area was near 100k. Not being from Memphis, is there a reason this area has prices all over the board?

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Fernando Parker

Investor · Memphis, TN · Member since 2016 · 24 posts · 26 votes

On the subject of Memphis zip codes, here's something that might help everyone. Keep in mind that there is a dizzying array of variance within each zip code in terms of tenant class/neighborhood/price range, etc. So be sure you're vetting your potential deals thoroughly. Hope this helps.

Memphis Area Zip Codes

38002--Arlington

38004--Atoka

38016--Cordova

38017--Collierville

38018--Cordova

38028--Eads

38053--Millington

38103--Downtown

38104--Midtown

38105--Downtown

38106--Bellevue/McLemore (South Midtown)

38107--North Memphis

38108--Kingsbury

38109--Whitehaven

38111--University of Memphis area

38112--Highland Heights/Hollywood-Jackson

38114--Orange Mound

38115--Hickory Hill

38116--Whitehaven

38117--East Memphis/Laurelwood

38118--Airport

38119--East Memphis

38120--East Memphis

38122--Berclair

38125--East Hickory Hill

38126--Southeast Downtown (Crump Boulevard)

38127--Frayser

38128--Raleigh

38131--Airport

38132--Airport

38133--Bartlett

38134--Bartlett

38135--Bartlett

38138--Germantown

38139--Germantown

38141--Hickory Hill

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Alexander Price
OP
Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
9y
Reviewing the area map it appears there are two pockets that are fairly affluent.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
this zip code has one of the worst neighborhoods in it called orange mound and then it also has high end over by the university and then there is a good mix in the middle. It's a larger zip code and you really need to know where your buying here more so then in some other areas.
Curt Davis - KAIZEN Realty538 Reviews
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
9y
I love 38111 and I hate it. There are parts I like and would live and there are parts I would only go with a National Guard escort.
901-848-9028
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Alexander Price
OP
Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
9y
@Alex Craig @Curt Davis Thank you both. Alex your comments always make me laugh.
Cheers!
1 Reply
Dan Fulghum
Flipper/Rehabber · Miami, FL · Member since 2016 · 102 posts · 12 votes
9y
Now that we're talking Memphis Zip Codes. Alex and Curt... what's you're input on zip code 38109?
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
that area is called Westwood. It's a little spotty. We do sell homes there but are particular when we do. I consider it no more then a C to C- type area.
Curt Davis - KAIZEN Realty538 Reviews
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Jason Hopkins
Investor · Memphis, TN · Member since 2016 · 549 posts · 286 votes
9y
38111 is spotty. The University of Memphis is there so some areas are great for rentals. My first rental (2009) was in this zip and all was well until 2015. The house was broken into twice. There was also an increase in gang violence on the street. I sold that property last year.
2 Reply
Fernando Parker
Investor · Memphis, TN · Member since 2016 · 24 posts · 26 votes
9y
On the subject of Memphis zip codes, here's something that might help everyone. Keep in mind that there is a dizzying array of variance within each zip code in terms of tenant class/neighborhood/price range, etc. So be sure you're vetting your potential deals thoroughly. Hope this helps.
Memphis Area Zip Codes
38002--Arlington
38004--Atoka
38016--Cordova
38017--Collierville
38018--Cordova
38028--Eads
38053--Millington
38103--Downtown
38104--Midtown
38105--Downtown
38106--Bellevue/McLemore (South Midtown)
38107--North Memphis
38108--Kingsbury
38109--Whitehaven
38111--University of Memphis area
38112--Highland Heights/Hollywood-Jackson
38114--Orange Mound
38115--Hickory Hill
38116--Whitehaven
38117--East Memphis/Laurelwood
38118--Airport
38119--East Memphis
38120--East Memphis
38122--Berclair
38125--East Hickory Hill
38126--Southeast Downtown (Crump Boulevard)
38127--Frayser
38128--Raleigh
38131--Airport
38132--Airport
38133--Bartlett
38134--Bartlett
38135--Bartlett
38138--Germantown
38139--Germantown
38141--Hickory Hill
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
9y
Would like to mention that not all of the zip codes above are Memphis, some or suburbs of Memphis.
@Dan Fulghum agree with Curt. I would say 15% of the area is worth owning a property. 30% of the area I would need a .357 magnum to be in the area. 30% of the area I would want a AR-15 semi automatic with extended clip, maybe a grenade and a wing man experienced in martial arts in case we have to go hand to hand combat. The other 25% I would need that National Guard escort.
BTW, I own one in the 30% where I would need a .357 magnum and have done really well. Problem is I do not own a .357 or a firearm for that matter, but I do have a big dog and myself and my Property Mgmt wake up at 6AM most days, so when I need to have set eyes on the house, we go early. Bought in 2008, all in for $35,000 and rents for $695. The first couple that lived there that broke up (avoid if you can boyfriend / girlfriend tenants) and dude left, leaving the girl to pay the rent, which was hard working at the Cricket store making $9.00 a hour. I will give it to her, she tried, even started stripping at the King of Clubs and maintained the rent for 2 months, but eventually I think the stripper life kicked in and she disappeared. That eviction produced some interesting objects upon move out, but that is a different story for a different day on a different 18+ website. Next tenant stayed 6 years, never missed a payment. Also, she moved in while we were setting furniture out on the curb. Current tenant has been there almost 18 months and while annoying (the sweating single pane window caused mold on her Gucci purse--yeah right. Not to mention the Gucci purse is more then the rent--gotta love responsible spending), pays on time. When tenant # 2 moved out, I removed the entire HVAC system and boarded up the back the day the tenant moved out. That is what you need to do in low C class where you need a .357 magnum. I am not a big fan of this type of investing for out of state investors, leave it to the local because most have no idea if you are in the 15% good area or the danger zone.
Avoid the area if you are not sure about it or travel to the market, meet a great team who actually owns properties in these areas and has the bandwidth in their office to manage these types of homes. I will the first to admit my PM company is not set up to manage a large portfolio of "C" class homes. Our portfolio is about 5% "C" class, thus why we turn down opportunities of these type homes all the time.
901-848-9028
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Daniel Weaver
Accountant · Memphis, TN · Member since 2016 · 45 posts · 39 votes
9y
I live in 38111 and currently own one rental in 38111 as well and agree almost 100% with what has been said above, though Alex is exaggerating the picture slightly with his colorful imagery. The 38111 zip is a perfect example of the stark differences that can occur in Memphis just by crossing one street.
Pretty easy to get a decent feel for which areas of this zip code are better based on rents shown on zillow.com. My neighborhood, Normal Station, is located between the University of Memphis main campus, and the University's South Campus (border is highland to the west, southern to the north, goodlett to the east and park to the south). Rents in this neighborhood are mostly to college students and tend to be $850+ for a 2/1 and $1100+ for a 3/2. Go South across Park Ave, and even before you get to the real hood rents immediately drop about $300/m - a 2/1 renting for $550 instead of $850. Home prices also drop accordingly.
To the other extreme, cross Southern Ave heading North, and you cross railroad tracks into a very affluent area of East Memphis. Some of the northern part of 38111 has homes valued in the hundreds of thousands of dollars.
Even within my small neighborhood, I feel the area East of Goodman Rd is more stable with less crime than the area West of Goodman Rd.
Lots of investment activity in the zip code, but uncertain outlook for appreciation unless some of the growing crime issues can be stemmed. Certainly some opportunities in the zip code, but I'm currently looking further east for my next property.
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
9y
I only provide the colorful imagery because I have seen so many out of state investors get burned by Real Estate hucksters by providing area info that is not accurate simply because the house they are selling is in the same zip code as the U of M. I get at least one lead into our PM site asking to manage some piece of junk deal in a terrible area and the story almost always starts, "I thought the area....." I have seen homes in Parkway Village advertised as "East Memphis" minutes from Poplar/240 where $1,000,000 are located. My favorite was a guy who has been on Bigger Pockets in the past who said a house on Par St. in 38127 was "minutes from the Trolley line." Well, yes, that house was minutes from the Trolley line, but that had no more to do with that house then the price of tea in China. Really, out of state investors unless they really have a solid team and solid understanding of our market have no business investing in these lower C class.
I also own in 38111. 1091 S. Highland, 27 Fenwick, 3648/3650/3650A Triplex and 3219 Carnes. Fenwick I will probably sell, but I consider that an Class "A" area in the terms of cash flow investing. My Highland and Carnes home are C class, maybe low C all the way. Kearney, really I consider that "A" class I have not had an vacancy more then 2 weeks since I owned it. I can also sell it in the high 170's if I wanted to as my rational for call it "A" class. Kearney is probably 2 miles from 1091 S Highland, if that.
Out of state investors need to know, even if it is colorful, how bad it can go if they are not doing their due diligence.
901-848-9028
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Daniel Weaver
Accountant · Memphis, TN · Member since 2016 · 45 posts · 39 votes
9y
Alex, completely agree with your purpose to help inform out of state owners about the risks to these neighborhoods in Memphis. Not trying to criticize your points at all, but actually reinforce them. Your point about getting up early to check on some of your homes is absolutely spot on as well. I avoid certain areas after dark that I would have no problem visiting during daylight hours.
Also agree with the misleading nature some of the marketing for homes in Memphis. Even just in my short time of following the BP forums, I've noticed homes being marketed as "close to the U of M" that are C class homes at best. Certainly seems misleading to me to market as close to the University of Memphis when most students are going to avoid that area.
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Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
9y
@Alex Craig you should write a book on the war stories you have experienced!!! I'd buy that book for sure! Love reading your post!
1 Reply
Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
9y
@Stephen Akindona I think any property manager can write a book, we all have great stories. Now that I own a Gus's Fried Chicken in Knoxville, I can add additional pages of employee drama.
901-848-9028
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Lior Zilber
Investor · Jerusalem, Israel · Member since 2016 · 8 posts · 2 votes
9y
Originally posted by @Alex Craig:

Would like to mention that not all of the zip codes above are Memphis, some or suburbs of Memphis.
@Dan Fulghum agree with Curt. I would say 15% of the area is worth owning a property.
Can someone give a list of these 15%?
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Lior Zilber
Investor · Jerusalem, Israel · Member since 2016 · 8 posts · 2 votes
9y
and what about 38116 ?
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Damian Gutierrez
Southern California · Member since 2019 · 27 posts · 6 votes
6y
@Alex Craig @Curt Davis Looks like you all have a ton of knowledge in the area. I have a property under contract (Buy and Hold conventional loan) in 38111 Cherokee, a couple blocks from where the 78 meets the 240 on Railton and Parker. The street itself doesn't have many properties worth more than $65,000. However, it looks like blocks surrounding this area have houses close to $100,000. Do you recommend investing in this area? Is it more of a C or D class neighborhood? Looking to make some cash flow. This would be my first real estate investment.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
6y
I would say on average it is a C area at best, still a rough area. I hope your expectations are not too high statistically speaking.
Good luck!
Curt Davis - KAIZEN Realty538 Reviews
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Damian Gutierrez
Southern California · Member since 2019 · 27 posts · 6 votes
6y
@Curt Davis I’m assuming a C class neighborhood with a tenant who would stay for 2-3 years with some missed payments. Not expecting the smoothest ride. Thanks for the feedback.
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
6y

@Damian Gutierrez I currently own 2 in 38111, one of which is a 7 year and 8 year tenant. I own several in C class and have great experiences. Doesn't make a difference if you are in A,B or C, it is all about tenant screening. My worst eviction out of 850 properties under management was one of my rentals I own in Bartlett. You simply want to avoid D class. That seems to be the issue here on Bigger Pockets as several TK providers market their "D" class homes as "C" class. Really, I love 38111, one of my favorite zip codes if buying in the right part of 38111. Good parts of 38111 that my management company is successful include Sherwood Forrest, U of M, Getwell South of 240, U of M South Campus over to Getwell, West of Highland/East of Semmes and North of Barron.
901-848-9028
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Marky Suazo
Attorney · Forest Hills, NY · Member since 2019 · 73 posts · 57 votes
6y
@Alex Craig @Curt Davis What are your thoughts on 38128 zip code, specifically on kerwood ave?
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
6y
It is, in my opinion, a C area.
38128 is an area I do like and I own several up there.
Curt Davis - KAIZEN Realty538 Reviews
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
6y
@Marky Suazo agree with Curt. C class does not mean stay away. A lot of the great spots to own in Memphis is C class. We manage Curt's home in that area and like he said, does fine. You have to be careful not to go to far up in the NE direction of 38128. Check out the attached no go zone. You need Chuck Norris to escort you in the no go zone.

901-848-9028
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Lars Hasseler
Member since 2018 · 24 posts · 13 votes
5y
@Curt Davis @Alex Craig thanks for your insight on Memphis zip codes. I've got two there, one in the 38127 zip code. Would you call that mostly C?
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
5y
Yes, 38127 is class C
901-848-9028
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