Better areas to invest in the Greater Memphis, TN area

39 Replies

Hey everyone. I am looking for the better areas of Memphis, TN to consider investing in SFR as well as multi-family. I am an agent in the Clarksville, TN area but prices here are starting to get into the Nashville nose bleed arena since so many people move to Nashville and discover how expensive it is. I would appreciate your views, recommendations and insights. Thanks in advance.

Guess it depends on what one considers better areas. To me a few areas come to mind: Bartlett, Cordova, East Memphis, Lakeland and Arlington.  Then there are much nicer areas like Germantown and Collierville.  

Depending on what price range you are looking for, this could be many areas.

Hello Monty, I have a Investing map of Memphis that breaks down the areas that I can share with you.

Thanks for the feedback.  I would appreciate getting the map from you James.  It would be helpful.  As for price range, that can be subjective though in my area, I would be looking at $100k - $150k for rentals.  Above that, it's hard to cover all your cost and have good positive cash flow.  As for mults, here most 4 plexs rent in the $500-600 range per month and sell for between $250-$300k.  How does those numbers compare with the areas of Memphis you have all been mentioning?  I have heard recently that things in Memphis have been variable but without real explanations.  Thanks.

Hey @Monty Powers I think it’s a smart move to take advantage of the Memphis market while you still can!

With your price range, depending on if you plan to buy turnkey or not, you’d be able to pick up some decent cash flow in B areas like 38135, 38141, 38117 and 38125. You could possibly get in some pockets of A areas like 38016. 

You can fetch similar returns in C+ areas like 38116, 38115 (certain areas) 38122, and pockets of 38128. 

If you want get 2 or 3 properties within your budget, you can scout some C to C- areas like 38118 (north of Winchester) 38128, 38109 (east of HWY 61), 38107 (south of Jackson), maybe some parts of 38127. 

Your A class areas are going to be 38138, 38002, 38017, 38018, 38125ish. 

It definitely helps that you are only a few hours away so you could definitely utilize BRRRR!

Feel free to reach out if you have any questions!

Cordova, Bartlett and east memphis
A few minutes away are Southaven, olive branch and hernando in Mississippi
Also Little Rock in Arkansas is supposed to be great for multi family

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James Martin can I get a copy of your investing map of Memphis too?

Originally posted by @Monty Powers :

Hey everyone. I am looking for the better areas of Memphis, TN to consider investing in SFR as well as multi-family. I am an agent in the Clarksville, TN area but prices here are starting to get into the Nashville nose bleed arena since so many people move to Nashville and discover how expensive it is. I would appreciate your views, recommendations and insights. Thanks in advance.

One thing to be careful about in the better "B" class areas are property taxes. Yes, you will get higher paying rents but property taxes at 1,500.00 a year will seriously eat into your ROI. The strong C areas will be around $800.00 to 1,100.00 and rents will not be much lower than B class areas. Also, at a 150k you are not going to find many properties that meet the 1% rule.

@James Martin Dear James, can I please have a copy of the investing map of Memphis as well? Thanks a lot !!

I am considering investing in Bartlett. Which strategy and property types would best fit that city ?

Flips ? Buy and hold (Rentals) ? BRRRR ? Is it a single family or multi-family target area (from investment ROI)?

@James Martin I just accepted a full time job in Memphis and will be moving there this fall. Could I get a copy of your map?

@James Martin   May as well jump in and ask for a copy of your map as well...

Hello, This is great info.  I am just getting started and exploring different areas in Memphis. I live in the burbs.   What do you think about the rentability in Cordova vs UM or Rhodes area?

Thanks in advance.

@Monty Powers

In that price range, you will not have a hard time finding a solid investment home. Be cautious of your property source in Memphis. Our market changes from zip code to zip code and then often times, changes from street to street in the actual zip codes. 

The return on a property from 90k-150k in Memphis isnt that drastic. it might be a good exercise to see what a slightly lower valued home can get you. We have several hedge funds buying in that 150k range so the competition is steep

Best of Luck to you here in my home town!!

I've been looking into the Memphis area recently and have noticed that 2-3 C type properties could generate cash flow.  What's the gentrification trend in these areas?  Any info/locations/zip codes would be helpful for my research.  Thanks!

 @Jonathan McGee :

Hey @Monty Powers I think it’s a smart move to take advantage of the Memphis market while you still can!

With your price range, depending on if you plan to buy turnkey or not, you’d be able to pick up some decent cash flow in B areas like 38135, 38141, 38117 and 38125. You could possibly get in some pockets of A areas like 38016. 

You can fetch similar returns in C+ areas like 38116, 38115 (certain areas) 38122, and pockets of 38128. 

If you want get 2 or 3 properties within your budget, you can scout some C to C- areas like 38118 (north of Winchester) 38128, 38109 (east of HWY 61), 38107 (south of Jackson), maybe some parts of 38127. 

Your A class areas are going to be 38138, 38002, 38017, 38018, 38125ish. 

It definitely helps that you are only a few hours away so you could definitely utilize BRRRR!

Feel free to reach out if you have any questions!

@SREE V.

i have rentals in cordova and they are easy to rent upon turnover.

Good Luck

@Monty Powers

the entry point for a rental in Bplus to A minus neighborhood is $110k to $120k nowadays. 

some neighborhoods are unincorporated so u can save on city of memphis fees.

Good luck

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