Out of State Investing in Tennessee

Member since 2020 · 4 posts · 8 votes

Hi Everyone!

I was looking to do my first OOS investment and I see Memphis Tennessee pop up a lot. What zip codes would you guys recommend I look into. Any tips and advice would be greatly appreciated.

Thanks!

6 Reply

144 views

Most Popular Reply

Melissa JusticeBusiness Member

Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes

@Douglas Dunn,

Hi! Memphis is a solid choice for out-of-state investing, especially if you’re looking for cash flow and long-term appreciation potential. A few zip codes investors commonly target include:

38109 – East Memphis area; generally stable, some newer construction, good schools.
38117 – Germantown/Millbranch area; higher-quality rentals, but still room for cash flow.
38116 – Southeast Memphis; affordable, strong rental demand, mostly single-family homes.
38115 – Midtown/Central area; older homes but lots of long-term renters.
38119 – Frayser area; very affordable, higher cash-on-cash potential, but requires more vetting and a solid property manager.

Tips for OOS investing in Memphis:
Focus on single-family homes or duplexes for easier management.
Work with a local, experienced property manager - they’re critical for success when you’re out of state.
Analyze each property’s rental demand, cash flow, and neighborhood trends rather than just purchase price.

Turnkey properties can save time and reduce headaches for first-time OOS investors.

Always happy to share more about what sort of deals in Memphis have worked for others.

Best of luck!

[email protected]313-221-8718

3 Reply

See this reply in the discussion

7 Replies

Jump to latestLatest

Sort by

Monica Bynum
Real Estate Agent · Memphis, TN · Member since 2019 · 76 posts · 39 votes
1y
Hello Douglas! It really depends on what you are looking for and price range. I have investors invest mostly inner city depending upon their needs. Memphis is a street by and sometimes block by block city. I will share some zip codes with you. 38111, 38122, 38127, 38128, 38115, 38118, 38116, 38109 are just a few to name. As stated it depends on your price point and strategy! Happy to discuss more.
1 Reply
Douglas Dunn
OP
Member since 2020 · 4 posts · 8 votes
1y
Hi Monica!
I was looking for homes under $200K that will cash flow and likely to have rent appreciation. I'm not sure what the home appreciations look like because different sources I looked into had different data sadly. I did look into 38111 earlier because I noticed the schools close by had some high ratings.
1 Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
1y
@Douglas Dunn,
Hi! Memphis is a solid choice for out-of-state investing, especially if you’re looking for cash flow and long-term appreciation potential. A few zip codes investors commonly target include:

38109 – East Memphis area; generally stable, some newer construction, good schools.
38117 – Germantown/Millbranch area; higher-quality rentals, but still room for cash flow.
38116 – Southeast Memphis; affordable, strong rental demand, mostly single-family homes.
38115 – Midtown/Central area; older homes but lots of long-term renters.
38119 – Frayser area; very affordable, higher cash-on-cash potential, but requires more vetting and a solid property manager.

Tips for OOS investing in Memphis:
Focus on single-family homes or duplexes for easier management.
Work with a local, experienced property manager - they’re critical for success when you’re out of state.
Analyze each property’s rental demand, cash flow, and neighborhood trends rather than just purchase price.

Turnkey properties can save time and reduce headaches for first-time OOS investors.

Always happy to share more about what sort of deals in Memphis have worked for others.
Best of luck!
[email protected]313-221-8718
3 Reply
Bernice RetzloffPro Member
Memphis, TN · Member since 2024 · 234 posts · 100 votes
1y
Hey @Douglas Dunn!
Great to see you considering Memphis for your first out-of-state investment! You’re right, it comes up a lot because of the strong rent-to-price ratios and steady rental demand.

When it comes to zip codes, it really depends on your strategy (cash flow vs. appreciation, tenant class, maintenance tolerance, etc.). In Memphis, you’ll find:
- B-class / solid rental areas – Often in parts of East Memphis, Cordova, and some pockets of Southeast Memphis where rents are strong and tenant turnover is reasonable.
- Higher cash flow / more management-intensive areas – Certain parts of South Memphis and North Memphis can offer lower entry prices and high yields, but they require a solid property manager and stronger screening processes.
A good starting point is to first define your ideal tenant profile and risk tolerance, then match that to neighborhoods. In Memphis, even street-by-street differences can make a big impact on returns and management effort.

I’m a local Memphis agent who works almost exclusively with investors, so if you’d like, I can share more specifics on the zip codes that align with your goals and connect you with vetted PMs, contractors, and lenders here. That way, you’re set up with the right team from the beginning.
901-664-1949
0 Reply
Monica Bynum
Real Estate Agent · Memphis, TN · Member since 2019 · 76 posts · 39 votes
1y
You can find that here and you may not have to go to the 200k mark. Once you start to get in that ballpark it doesn’t make sense cash flow wise unless you get a really good rental amount.
0 Reply
Jordan RayBusiness Member
Real Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 337 votes
1y
Quote from @Douglas Dunn:

Hi Everyone!

I was looking to do my first OOS investment and I see Memphis Tennessee pop up a lot. What zip codes would you guys recommend I look into. Any tips and advice would be greatly appreciated.
Thanks!

Welcome to BiggerPockets and glad to see you looking at Memphis — you’re on the right track. Out-of-state investors love this market because it’s landlord-friendly, rental demand is strong, and you can still find properties that hit the 1% rule (which is tough to do in most bigger cities).

As for zip codes, it really depends on whether your focus is cash flow, appreciation, or a balance of both. I work with a lot of out-of-state buyers, and most are targeting areas where the numbers make sense for BRRRR: using hard money lenders that cover 100% of the purchase and 100% of the rehab, averaging only about $10K out of pocket per deal. That strategy lets you recycle your capital and scale much faster than buying one property with all cash.

If you’d like, I can break down which Memphis zip codes tend to perform best for different strategies (cash flow vs. appreciation vs. Airbnb). Happy to share what I’m seeing investors succeed with here on the ground. Hit me up if you are interested in learning more and connecting! Talk to you soon!
[email protected]662-642-1458
Jordan Ray - eXp Realty5109 Reviews
Website View Page
1 Reply
Jeb Williams
Property Manager · Clarksville, TN · Member since 2025 · 14 posts · 5 votes
1y
Hey, Douglas!
I can't speak for Memphis, but I recently moved to Ashland City, Tennessee and started working with Rent My Home based in Clarksville, TN. Clarksville experiences strong renter demand stemming from the military base Ft. Campbell. Military bases are a great source of real estate traffic from new enlistees and people leaving the army.
What kind of investment did you have in mind? Looking to buy and flip or cash flow a rental property?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.