MEMPHIS & CLARKSVILLE / TN?

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MEMPHIS & CLARKSVILLE / TN?

Scott Rudd
Brooklyn, NY · Member since 2016 · 22 posts · 7 votes

Hi Everyone,

I am brand new here and looking to get into cash flow property investing.  I was recommended to look into the markets of Memphis, TN & Clarksville.   Can anyone recommend a property management company in these areas?   Are these good areas?  Doing as much research as possible and planning to head out there next week.  Any recommendations would be amazing!  Also, thoughts on MarshallReddick?  Are they trust worthy?

Thanks!

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Derrick Craig
Memphis, TN · Member since 2013 · 969 posts · 524 votes
10y

@Scott Rudd

Glad to see you joined Bigger Pockets!! Memphis is a great area to earn passive income.. Let me know if I can be of any assistance in your search..

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  • Alexander Price
    Investor · Gilroy, CA · Member since 2016 · 255 posts · 195 votes
    10y

    Are you planning on doing the buying rehab and renting yourself? Memphis has some good Turnkey companies that have dle this for you and allow you to basically purchase a revenue stream, albeit in the form of a rental. There are some prominent players from Memphis on here regularly. talk to all of them. Another note is turnkeys typically offer PM with the purchase.

    People you should talk to @DouglasSkipworth @DavidHutson @JamesMartin @AlexCraig

    My @mentions don't work from my phone but they will see the Memphis tag. I have gotten valuable information from all these guys. Good luck and let me know if you have questions I might be able to answer.

    1Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y

    Hi Alexander,  

    Thanks so much for the response.  I am totally new here so I appreciate the help!  I am looking at turnkey properties right now to get started.  I am very new to all this but have been reading a researching a lot.  A am mainly interested in a very passive cash flow revenue stream to start off with.  

    0Reply
  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    10y

    @Scott Rudd

    Glad to see you joined Bigger Pockets!! Memphis is a great area to earn passive income.. Let me know if I can be of any assistance in your search..

    3Reply
  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Hi, @Scott Rudd.

    Welcome to BiggerPockets!

    Be sure to check out the blogs and podcasts as well as the forums.  You can learn a ton from the real estate experts on the site.

    As @Alexander Price said, there are several of us locals on BP who can help you learn about our market.  Just keep asking specific questions and we'll start answering.

    Best of luck to you!

    Investor's Guide to Memphis Real Estate
    View Page
    0Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y

    Thanks 

    @Douglas Skipworth @Derrick Craig

    I am planning a tour of memphis on the 30th (next week) and then heading up to Nashville area for a few days.  Wish I had come across Biggerpockets a little earlier.  I was referred to those areas by Marshallreddick but not sure how trust worthy they are? Id also like to meet property managers on my own and see who is the best fit (as I am based in Brooklyn).

    Am open to any other areas you recommend in TN.  I am hoping to find cash flow properties with a minimum NET Cash on Cash flow of at least 10% - is this a reasonable expectation?   I have invested in REITS and enjoy the high dividends but hate the "randomness" of the market - would also like to benefit from principle pay down, deductions and appreciation.  That being said, my main goal is as much passive income as possible.

    0Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    10y
    Hey Scott Rudd, welcome to the site! As far as property managers go there are several to choose from in Memphis but two that I know and recommend would be Douglas Skipworth or Alex Craig they are both the real deal investors in Memphis and own property management companies! I am also a licensed real estate agent and investor and would love to help out anyway that I can!
    2Reply
  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Hi, @Scott Rudd.

    What is your plan for your trip here on Thursday 6/30/16?  We'd love to help you that day if we can.

    Investor's Guide to Memphis Real Estate
    View Page
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Scott Rudd:

    Thanks 

    @Douglas Skipworth @Derrick Craig

    I am planning a tour of memphis on the 30th (next week) and then heading up to Nashville area for a few days.  Wish I had come across Biggerpockets a little earlier.  I was referred to those areas by Marshallreddick but not sure how trust worthy they are? Id also like to meet property managers on my own and see who is the best fit (as I am based in Brooklyn).

    Am open to any other areas you recommend in TN.  I am hoping to find cash flow properties with a minimum NET Cash on Cash flow of at least 10% - is this a reasonable expectation?   I have invested in REITS and enjoy the high dividends but hate the "randomness" of the market - would also like to benefit from principle pay down, deductions and appreciation.  That being said, my main goal is as much passive income as possible.

     Scott,

    Have you already purchased properties through Reddick's company and are now looking to put the pieces together?  I wasn't aware that they were still selling properties and/or never new them to recommend cities.  Did you attend an event?

    I think you are making a super wise decision to head out next week and check out the areas.  Both Memphis and Clarksville can be good cities for passive investors.  The dynamics of what make them tick are a little different, which is why it seems odd that they would recommend both. 

     Let us know if they are actually selling properties or if they are just recommending areas and you are simply starting due diligence.  I would be interested to know what they are selling to clients at events.

    As for your goals, they are absolutely achievable in both cities and I am sure with all the choices you will find a company that is a great fit.

    All the best - Chirs

    Podcast Guest on Show #224
    REI Nation4.576 Reviews
    WebsiteView Page
    1Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    10y

    @Scott Rudd

    I look forward to meeting with you when you visit next week. We will make sure you know about our market and what you an expect before you leave. See us next week!! 

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
    2Reply
  • Leo K.
    Nashville, TN · Member since 2015 · 100 posts · 64 votes
    10y

    @Scott Rudd

    Hey Scott, if you want to learn about Nashville, I'd be happy to help you out however I can.

    Nashville is a fast growing market with positive net migration and increasing job opportunities.

    There are opportunities for 10% COC returns.

    If I can help out in anyway, shoot me a pm.

    1Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    @Scott Rudd Hopefully you will spend some time in Nashville--great city. I will up there 6/6 to 6/8 to hang out with friends and watch the train wreck of a band Gun's 'N Roses.

    901-848-9028
    0Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y
    Chris Clothier Hey Chris! Thanks for the message - just tried to send a lengthy response via PM but not sure it went though? App crashed after I hit send.
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Scott Rudd:

    Chris Clothier

    Hey Chris! Thanks for the message - just tried to send a lengthy response via PM but not sure it went though? App crashed after I hit send.

     Scott - I appreciate your reaching out.  I hate that you typed up a lengthy message...especially since it did not come through!  I have had that happen on here before ~  Feel free to reach back out to me or maybe resend your message.

    all the best - Chris

    Podcast Guest on Show #224
    REI Nation4.576 Reviews
    WebsiteView Page
    0Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y
    Chris Clothier Hey Chris, Basically I was saying in my pm that I was referred to Marshall reddick from a friends uncle. They do have listings up on their site. One of their advisors suggested I check out the Memphis and Clarksville markets. Since they are reasonable driving distance apart and I'm far away I figured I'd kill two birds with one stone. I'm a newbie and a little skeptical of anything salesman related so wanted to do my own due dilligence on the areas as well. About me: based in NYC. Have been lucky to have a pretty good career (knock on wood) but really want to start getting some Passive income so I'm not "trapped" in one job / one location until I die. Love the idea of the freedom that comes with passive income. Want to travel. Not looking for get rich schemes or speculative investments. Want solid long term high cash flow returns. (Is this possible?). Also interested in mobile home investing as I've heard this is great for cash flow. That being said - no idea how that works. Whatever the best passive long term cash flow is I'm interested in. Best areas for return? What can I expect? Who can I trust? What type of properties? Etc etc. Would love to meet with as many people as possible while I'm in Memphis.
    0Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y
    Leo Khmelniker Hey Leo, Would love to chat when I'm in the Nashville area. Will be up there on the 2nd and probably 1st Scott
    1Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Scott Rudd

    Welcome take full advantage of the BP resources.

    To find a PM go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

    You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

    Paul

    1Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y

    Hey guys, just an update. Was in Tampa yesterday looking at the area. I came across a Condo in a community my friends were buying investments in. The condo was priced at approx 40K (CASH) with an expected rental of $800-850/month BUT it has a HOA fee of $260. I'm a little worried about those HOA situations as I feel it's an element I have no control over. What are you're thoughts? I believe after running #'s it should cash flow + $350-$400/month.

    My gut is saying beware of the HOA. Isn't the money better spent towards a mortgage payment?

    Thoughts?

    1Reply
  • Robert Wilson
    Real Estate Agent · Tampa, FL · Member since 2016 · 131 posts · 47 votes
    10y

    There's a few things to be aware of on an HOA deal.

    - First, the number one or two line item on the HOA budget is probably going to be exterior building insurance. If this is a case, there is a cost savings for you because you won't be required to carry that same insurance yourself.

    - Second, HOA vary widely in terms of their reserves and solvency. As part of your due diligence, you need to review the budget for the HOA. An HOA without reserves for basic maintenance will one day have to raise monthly fees or do a special assessment to the property owners.

    - Finally, be aware if a single entity holds more than 50% of the units in the development. That entity might hold an unusual amount of power in the HOA and also be able to either drive up costs by approving a larger budget, or fail to budget for costs leading to disrepair or a high dollar special assessment.

    Anyway... hope that helps.

    0Reply
  • Scott Rudd
    OP
    Brooklyn, NY · Member since 2016 · 22 posts · 7 votes
    10y

    Thanks @Robert Wilson

    Is Tampa a good cash flow market ?

    0Reply
  • Robert Wilson
    Real Estate Agent · Tampa, FL · Member since 2016 · 131 posts · 47 votes
    10y

    It depends... the submarkets I'm most active in for my builder clients are going to get you about 5-7% CAP rate. Other pockets that have better CAP rates are closer to the University or in more transitional neighborhoods.

    What part of town is that condo in?

    0Reply
  • Sylvia White
    Dyersburg, TN · Member since 2016 · 4 posts · 2 votes
    9y

    We are new to investing and live in the memphis area. Any help getting started is appreciated. Trying to think about best places. We could rehab ourself so looking for a duplex or something to start with. May look into Nashville or Jackson TN as well. Not sure exactly where to start.

    1Reply
  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    9y
    Scott Rudd Hey Scott! I manage a few hedge funds and private investors on a national and local basis. Memphis has some of the best opportunities for investing. My clients hold ROI's in the Mid-Teens on an annual basis. I'm happy to answer any questions you may have about Memphis. I have lived here my whole life so myself and my team are extremely familiar with our investing markets! Douglas Skipworth is the owner of CrestCore Realty and they manage thousands of homes here in Memphis and they will be a huge asset for you! Call me anytime and Good Luck!
    CrestCore Realty4.713 Reviews
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  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes
    9y

    @Scott Rudd I use reedyandcompany.net for property management in Memphis. 

    If you need help finding some great investment properties, I'd suggest finding someone with local knowledge. 

    1Reply
  • Ron Dayley
    Clarksville, TN · Member since 2016 · 238 posts · 96 votes
    9y

    Hi Scott,

    Clarksville TN is a great rental market.  Property is affordable and there is a high demand for rentals because of Fort Campbell Army Post, APSU, Hankook Tires and Google all being here.  

    Let me know if I can help in any way.


    Regards,
    Ron

    1Reply
  • Ahmed Rashed
    Rental Property Investor · Pompton Lakes, NJ · Member since 2019 · 2 posts · 0 votes
    6y

    @Derrick Craig saw your post about Memphis I found some potential locations was hoping you could give me some insight on the neighborhoods, thank you in advance.

    0Reply
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