I am looking at a duplex in Memphis, TN in 38115 area. The cash flow is great but I hear "bad" things about this specific area called Hickory Hill.
The property is a couple streets east of Apple Blossom Dr, and Flowering Peach Dr. I hear these two streets are rough. While this property is not on those streets, it is nearby.
The property has two tenants. One of them has been there for more than 1 year. The other just got placed. The unit was vacant for over 4 months. This tells me it was a lack of oversight from the prop. management, or that because of winter months, demand is low for rentals. I've also not been able to receive a very detailed rent roll showing late payments, etc; just a spreadsheet. Since I will be inheriting tenants, this does worry me.
What do you all think about this area? I can share more specific details if needed.
@Mushfiq S. I avoid that area due to the safety issues you mentioned. My wife was robbed at gunpoint by a neighbor's son close to Hickory Hill (38118). I know there are plenty of people who make money in both HH and Parkway Village/Fox Meadows. Yes, the homes are relatively big and newer. However, I do not want to rent in a neighborhood where vandalism/safety is a major issue.
My strategy to identify acceptable neighborhoods when I got started was to avoid areas where copper theft is a major issue. If thieves feel comfortable completely ransacking a property in that neighborhood, how long will your investment survive if it goes vacant? Think about it. If there is a good chance your HVAC will 'walk', how many months will it take to recoup the replacement costs?
There are safer/good neighborhoods with the right price/rent ratio within the 240 loop (although with older homes).
i cannot comment on the location of the property but u can check websites like zillow or redfin or other BP posts on neighborhoods around memphis
But i can say that four months is not ok for a property to find tenant in winter months.. around 60 days is fair unless rent is high. a lot of times PM will place tenant with spotty credit history to acheive cash flow targets.
All i can say is DRIVE it.. If the area makes you feel uncomfortable in your car, then its probably not best for you. I was told the same thing about the Northaven neighborhood. But after driving and WALKING it, I felt comfortable speaking with a couple of neighbors and felt safe investing in the neighborhood.
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