All Forum Posts by: Dean Harris

@Jake Fahey

To me, the best route to take is to BRRRR in Memphis. I have completed 4 myself this year and I am working on the 5th. I love the BRRRR strategy here in Memphis. You do need to make sure it is completed correctly but the idea of having a freshly rehabbed home with a tenant that you place or your management company places has really worked for me.

Best of Luck!

@Kyle Belleville

One thing I will advise is to make sure that whoever you use for an agent or property source actually owns rental property themselves. I think that really helps the conversation with you and helps you understand from someone who has been in the trenches in Memphis with their own rental property. There is a huge difference in those conversations. 

Let me get you some feedback on your questions. 

1. What is one mistake you've made investing in the Memphis?

Once I received a rehab back, I chose to cut about $2,500 from the budget because I wasn't wanting to spend that much. I then received multiple maintenance calls over the next several months. 

2. What is something you would tell previous self about Memphis investing?

Start earlier. Move quicker and build your team faster. There are deals out here and I needed to be ready sooner than I was

3. Any good recommendations in the area (agent, lender, property manager, contractors)?

I'm an agent that works exclusively with OOS investors. You can talk to several bankers including Mark Graves at Insouth Bank, Chuck Jackson at Guaranty Bank and Jordan Saslawsky at Renasant Bank. I can also send you contractors names in a separate email

4. Good for long term?

Excellent long term play here in Memphis. The rental rates haven't changed much at all even through the market crash of 2008. Very steady rental market for sure. 

5. How is section 8 in the area?

Section 8 as you know goes with the tenant. My experience in Memphis with Section hasn't been good. The tenants are rough on the homes and once the lease runs out, they just take their voucher to the next house. I advise against it in most cases. 

@Crystal Tai

Most investors settle on Memphis, TN because of the cash flow!

Will Griffin in Memphis is a great Real Estate Attorney. (Griffin, Clift, Everton and Maschmeyer)

@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. 

@Jenner Birukow I'm a life long "Memphian" and I have completed 3 BRRRR turns this year for myself. I'm happy to answer any questions on my BRRRR experiences. Inhabe also represented 4 different OOS investors who have completed the BRRRR in Memphis this year. Happy to help.

@Steven Silman

I prefer to buy property over there that is vacant. Then, I can control the condition from the beginning. What often happens is that investors will buy a property that is occupied over there and then get all kinds of surprises once the home goes vacant. To me, buying vacant and going over the top with the rehab is essential. I always have a plumber inspect, drain lines, etc. I always have an electrician update the panels. I always replace faucets, lighting and anything else that would cause a tenant to call in a maintenance request. I will usually install a new roof, install new AC window units (This is acceptable in this market) and make sure that the exterior is free of trees since this area is well established and full of mature trees. 

Those are just some of the basics that I cover when I by in 38122 and 38108. Feel free to reach out via PM if you have any other questions. 

I personally own several properties in Memphis, Tn that are under $50,000. They are preforming well too! You just need to make sure you take a few important steps on the front end of the purchase to ensure they go smoothly. 

I own in 38109. My only advice is to stay East of Highway 61 (3rd Street). I am not saying you cant find a deal over there and I am not saying you cant have some good luck and catch a good tenant but if you pay attention to overall stats and opinions of people who have experience there with more than 10 houses, they will tell you to stay East of Highway 61. 

@Andrew Spencer

As a life long "Memphian", this can be a difficult thing to figure out even living here my entire life. I also use Trulia for some limited info on crime but the advice I would give you is to find a source in the city that you can learn to trust. No matter who the source is that you learn to trust, I would ask them if they own rental property as well. To me, this is crucial in the type of advice, recommendations, referrals and types of properties this person would introduce you to. Then, you are having a conversation not from a "Sales Person" but rather a trusted partner who is thinking and acting like you would be if you were a local investor. 

Best of Luck and I am happy to answer any questions you may have based on my personal experiences in Memphis.