Looking for C+ to B neighborhoods in Memphis

12 Replies | Memphis, Tennessee

Good evening, I am an investor doing research in the Memphis Market.

Looking for C+ to B neighborhoods with fixer upper multi family properties ranging between 40k to 80k. What neighborhoods should I be looking into and what is the current market like in Memphis, TN? Does this criteria exist in these types of neighborhoods? I'm looking to BRRRR a property. Thank you for your help!

Chad

I do not believe that what you are describing really exists here.  Multi families in the 40-80k range, even needing work, are going to be C/D areas.  Its possible that you could find a 5 unit that needs 60k for 80k...  But I haven't seen that deal here.  The golden cash flow legend of Memphis is really in the C/D class areas.  By the time you get to B class Memphis isn't really any better than any other markets.

@Jackson Long Thanks Jackson. Taking the multi family portion out of the equation, which neighborhoods would you consider C to B- neighborhoods with decent fix up opportunities in the 60k-80k price range? I want to get a feel on what neighborhoods to look into. I appreciate the response!

Memphis is a pretty big place and the layout (in terms of neighborhood class) is very spotty.   I can speak to some of the C class.  These will range from 40 (or 1) to 80k with 80 being turnkey (not through a turnkey company though- you can add about 25% for that privilege.  I think you want to stay inside of the loop- look at how 240 and 40 make a circle.  There are some significant Hoods with a capitol H in here too though.  Steer clear of Orange Mound and Tillman.  But within that look look to the south east and there are some good blue collar sprawls.

Maybe somebody else can speak to B class areas?  Maybe out in the burbs a bit?  The bad side of Collierville?  Within the areas I work in order to get a B class it would be an area full of A mixed with C.  And that isn't actionable as a B class- its just silly math.

ALSO very few people here like to share.  Contractors, knowledge, deals- doublecheck any friendly offer you find with serious boots on the ground research.  In the 2 years or so since I'be been here I've been bitten two or three times for being naive.  I've managed to steer clear of maybe 12-15 hustlers trying to get me involved or sell me or whatever.  And I've found maaayyybe 5 other professionals that seem motivated to create value not just take everything they can.

What you are asking is very subjective. What is it you are actually wanting to find? Areas with low crime? Areas with high percentage of owners? Areas with strong rental demand and growth? What I call a B area and what Derrick Craig calls a B area for example are completely different. We can advise more if we have better info/questions.

Have you seen this video from James/Memphis Turnkey Provider, it lays out the A, B, and C areas,


https://www.youtube.com/watch?v=vxR9bYaEz5s



Originally posted by @Chad Mintz :

Good evening, I am an investor doing research in the Memphis Market.

Looking for C+ to B neighborhoods with fixer upper multi family properties ranging between 40k to 80k. What neighborhoods should I be looking into and what is the current market like in Memphis, TN? Does this criteria exist in these types of neighborhoods? I'm looking to BRRRR a property. Thank you for your help!

Chad

Hi @Justin Munk

In the process now, closing in a C area called White Haven east of Memphis airport. Visited a few weeks back post rehab and my realtor / flipper did a great job  As expected workmanship and area.  My first in Memphis.  Many more to come.

I've attached a working video from  James/Memphis Turnkey Provider.  He maps out the areas.  Also my realtor has a comprehensive document of each zip code. DM me if you want his contact.

;t=51s

I am an out of state investor and used Roofstock recently to purchase in a C class neighborhood in 38109. Roofstock rates neighborhoods and provides inspection reports, tenant ledgers, property valuation reports helping you analyze a deal better as an investor. They always have a lot of properties in Memphis, TN. Let me know if you want to connect and chat about the purchase process. 

I'm in Southern California and own 3 SFH's in Cordova, 38018. Current rents are: $1250, $1350 and $1400. As an out of state investor, I'd probably classify them as C+ to B areas. Steady income w/ good renters and good cashflow. I've been to Memphis a few times and I've grown to like the Cordova area, especially for SFH rentals.