4 Plex Rental Unit in Memphis

[Jason Stubblefield]

I've gotten my hands on a four unit small apartment building in Memphis.   I would be an out of state owner. The numbers seem good and on paper it looks like a sound investment.  The property address is 3071 Sharpe Ave.  Memphis, TN.  This definitely isn't the best area and I know I will need an excellent property management company to deal with the turnover/tenant issues.  I'm wondering if anyone on here has any advice about this area, this deal, or any advice with C to D neighborhoods.  It makes sense to me but I was wondering what others may think of it.  Here are the financials:

All the units are currently occupied at 500 per month ($2000 total).  100k purchase price.  I'd put 20 percent down using a heloc (1.5% minimum payment).  $2452 per year in taxes. $1897 Insurance. 10% property management fee. $252 per month (utilities and garbage).   All in all it should initially cash flow $400 per month or $700 per month if I use my own funds instead of the heloc. 

I'll definitely appreciate your feedback.  Thanks. 

[Douglas Skipworth]

Hi, @Jason Stubblefield.

Welcome to BiggerPockets!

You should definitely talk to @Jimmy Warr.  He's been looking at a similar-type deal and could help you a ton with all the research he's done recently.

You can also connect with @Derrick Craig or @James Martin.  They are good managers and fine individuals who know the area well.

Best of luck to you!