So I've been reading everything I can about BRRRR, which led me to the BiggerPockets forum, where I finally found the people and information I had been looking for. After crawling through the forums for months and talking to people, I've narrowed down the choices to Memphis and Birmingham to begin executing my investing strategy. I have lenders and money in place, just trying to nail down some good properties. If there are any good agents/contractors in the area, I would love your contact information in hopes of working with you in the near future.
Beyond this, I'd love to hear from the gurus and pros in these areas. How do you feel about these markets? What makes them so attractive to YOU specifically (like I said, i'm already interested so I have my reasons, but I'm always wanting to learn more). What zips are the best zones right now? Where are the best C and B class neighborhoods? Is section 8 tenants more or less a requirement? If so who are the best property management teams in the area to facilitate this? I have so many questions, I will continue to read these forums and learn everything that I can, but I'd definitely love to hear from any pros about their experiences in these markets.
I'd also love to hear from people getting started out much like myself. Let's get to know each other, we might be knocking around in the same areas for some time to come eh?
Any lenders that want to speak I'm more than happy to, I'd love to meet anyone that I can in this industry. I do have some in place already, but maybe I wind up liking you or your rates more, who knows! Let's talk, I'd love to speak with experts about anything. I want to learn more, that's the plan. That's what I love about this website, I learn so much every time I visit.
Thank you all for your time and input, it's great to find such a wealth of knowledge like this community has.
Hi Jarod, @Jarod Flanagan
Similar story for me. I was looking into turnkey properties, then found BiggerPockets podcast a couple weeks ago. Now I'm reading BRRRR Book and Estimating Rehab Costs. Just made a BP account today.
From the turnkey podcasts, I've been looking into Memphis and Birmingham markets because of the >1% R/V. ...so, same place as you. How's it going so far?
Hey Guys, @Jarod Flanagan and @Jean Laurin
I am a Realtor in north west MS, Just south of Memphis. I have been recently BP podcasting and learning the BRRRR strategy as well. The amount of control you have with this type of investing is what really attracted me to it. I am not personally licensed in TN but I do know some good agents that are if you are interested in Memphis specifically.
Northern MS, also known as Desoto county, fits the 1% rule for rentals. Most homes are only a 20 minute drive to Memphis, so a lot of people are moving here to have the city job without living in the big city. Single family rentals here are in the $80,000 - $120,000 range. That means Jean can buy 10 properties instead of 1 in Los Angeles! I would love to help you guys out in any way I can. S
Hi @Jarod Flanagan and @Jean Laurin I have an investment property in Memphis, and I like the cash flow, given the price of homes and PITI. It seems like a major determining factor is the zip code. Like all cities, Memphis has good and bad locations, and finding the right one makes a difference. I've seen other members post healthy zip codes.
Hi @Hollis Whitehead , thanks for commenting. That's really interesting that people who work in Memphis are choosing to live in north west MS. Is this a new development or have been people been doing this awhile? Is NW MS growing as a result? I'm also curious if you've worked with out of state investors? I have an investment property in Memphis, but am also looking for other opportunities. I would love to know more about north west MS.
@Tim Harwick thank you for commenting! You have some great questions. I do plan to get licensed in TN, however I have not done it yet. I believe there is a lot of untapped potential around the University of Memphis! The commute from north MS to Memphis is about 30 minutes. Horn Lake, Southaven, and Olive Branch are three good options in MS for investment properties. The population growth in Shelby County (Memphis) has been about 1% in the last 8 years. Now, compare that to 13% for Desoto County ( North West MS) in the last 8 years. There is also a large development Silo Square that is in the process of being built (Google Silo Square for master plan). The area has been on a rise for a few years now but it is still on the up and up!
I have not closed a deal with an investor yet. I do plan to be moving into the investing world myself, so I have already been learning the processes. If you want more information, which i would gladly share just message me or comment below!
MS has a state income tax so when considering investments there you'll need to build some state income tax that will need to be paid on any taxable MS income. The good thing is that it's easy to file your taxes as a non-resident either using tax software that extracts MS income and expenses. As a TN resident with commercial real estate investments in MS, I have found the reporting and paying electronically easy using Turbo Tax.
DeSoto County has been growing for at least the last 20 years with the county now having many large employers that has reduced the amount of commuting into Memphis, major retail and a good road system with access to north/south I-55, US HWY 78 (I-22) connecting Memphis and Birmingham and the recently completed I-269 which is the new interstate that creates a bypass around Shelby County and opens up a tremendous amount of developable land for industrial/distribution and future residential.
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