Out of State Investing in Tennessee

[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!

[Melissa Justice]

@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!