Drastically varying prices for Memphis, TN 38127 properties

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Drastically varying prices for Memphis, TN 38127 properties

Jeff Young
New to Real Estate · Sarasota, FL · Member since 2020 · 22 posts · 6 votes

I'm looking into Memphis, TN for rental properties. I see some interesting deals, but I'm having trouble understanding how some properties sell for $90-125,000, then others on the same street only sell for $20-40,000. For example, 612 Leavert Ave, Memphis, TN 38127 AND 618 Leavert Ave, Memphis, TN 38127. $34,000 vs $132,000 respectively.

Are there any agents or property managers that can shed some light on this and/or show me some deals. I'm looking to buy rental properties in any cash flowing/appreciating market(s).

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Dean HarrisBusiness Member
Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y

@Jeff Young

I'm happy to help. I represent OOS buyers everyday to buy a liquidate. One important thing you should know is that 38127 is a really tricky zip code. I usually tell OOS investors with zero experience in 38127 to stay away from anything west of Highway 51. The tenant pool drops off considerably over there, very little commerce or jobs west of Highway 51. If you have property there and you know what you are doing, you can make it work but I never suggest it if you arent local or have lots of experience in that immediate area. 

There are several other zip codes in similar prices ranges that I would suggest go to before you look into 38127. Im happy to answer any question you may have based of my personal experience in Memphis. 

CrestCore Realty4.713 Reviews
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  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Jeff Young

    I'm happy to help. I represent OOS buyers everyday to buy a liquidate. One important thing you should know is that 38127 is a really tricky zip code. I usually tell OOS investors with zero experience in 38127 to stay away from anything west of Highway 51. The tenant pool drops off considerably over there, very little commerce or jobs west of Highway 51. If you have property there and you know what you are doing, you can make it work but I never suggest it if you arent local or have lots of experience in that immediate area. 

    There are several other zip codes in similar prices ranges that I would suggest go to before you look into 38127. Im happy to answer any question you may have based of my personal experience in Memphis. 

    CrestCore Realty4.713 Reviews
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  • John DirksPro Member
    Rental Property Investor · San Francisco · Member since 2019 · 8 posts · 8 votes
    6y

    Hi Jeff,  I have been looking in Memphis as well.  Those properties on Realtor.com are listed 62,500 and 64,600 respectively.  Those are their last sold prices, but if you look further into detail, 618 sold for $62,226 above list price.  Its also part of a investor portfolio.  "Investor liquidating rental inventory. Seller may entertain splitting properties into a minimum of 20 to 25 properties."  

    It could have been sold in a package deal and they just split the cost even amongst the properties.  Im not tax specialist, but if you purchase an investment at 132k and sell it for 65k, you have no gain I think.

    I have found it useful to dive deeper into the Memphis properties to find out why things dont make sense up front.

    Hope this helps a little

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  • Jeff Young
    OP
    New to Real Estate · Sarasota, FL · Member since 2020 · 22 posts · 6 votes
    6y

    @john dirks

    Thank you for that information. I didn't know that was possible.  I would have thought they individually price each house in the portfolios.

    I'll be sure to dive deeper.

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  • Sean Tagge
    Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    6y

    Hey Jeff

    A simple look on in the Shelby county register of deeds you can see 

    https://register.shelby.tn.us/search/

    as mentioned the $128k was for 3 properties see below. 

    $128,700 ON 05/08/19, Sale price is total for 3 parcels, Warranty Deed, 19048063. Recorded 2019.CSMA BLT LLC to CSMA SFR HOLDINGS II LSE LLC. Loan $0, % Cash Sale Or Mortgage Type Unknown. Normal Sale. (Physical Data from Appraiser WIET on 04/1990) Residential Single Family, built in 1963, 1209 sq ft, ($106/sq.ft.), 1 stories, 5 rooms, 3 bedrooms, 1 full bath(s), 0 half bath(s), No Pool, fireplace(s), Brick/Wood Composition Construction, Forced Air/Gas, No Central Air, C4 -Average Condition.

    You can use these public websites to figure out everything on a property who bought it, how much of a loan did they get and when etc. 

    https://register.shelby.tn.us/search/index.php

    https://www.assessormelvinburgess.com/welcome

    https://gis.register.shelby.tn.us/

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