All Forum Posts by: Jack Inman

@Joel Owens summed it up pretty well. 

@Wesley H. I am a local investor in Memphis, I'd be happy to give you the contact info of a couple of agents that work in the area. Just PM me

@Veronica Zayas a good way to find good deals on properties is to contact real estate agents in the area where you are considering buying. I have used agents to find properties for me in the past; sometimes wholesalers are a good source but  you should try to negotiate the price down a lot when using them. I think Memphis is a great market and the city is certainly on the upswing. Good Luck!

Benjamin, 

The Memphis economy is doing very well right now. In the last two years I've witnessed many new businesses open up and many businesses are doing really well. There's been a large change in the fact that many new businesses are catering to the young adult crowd; this combined with the low cost of living is bringing new young people to the city. This city is setting up a strong foundation for some good long term economic growth. 

Do you have a specific area of Memphis in mind? I'd recommend a single family home that rents for around 800-900$ a month. That'll probably cost somewhere in the middle of your price spread. 

Can't speak for MemphisInvest, but I have heard a lot of good things about CrestCore. Might be worth taking a look at them also. 

To add on to what Curt and Dean said, multi family housing usually attracts a very low income tenant. The reason being is that renting a single family home is very affordable in Memphis so most tenants rent SFH.

However, I do know several investors that make some very good money investing in duplexes; the trick is being able to find a quality low income tenant. Most duplex renters are going to be irresponsible with money (hence why they are living in a duplex) and this makes it hard to collect rent. However, if you can attract an older, maybe even retired tenant, then you can have a relatively worry free landlord experience and still get the great cash flow that duplexes often have. 

I usually spend an hour or two every other day driving and looking for properties, if you want to tag along just let me know!

-Jack Inman

LumLee,

Yeah I manage some properties and own a couple houses myself in Memphis. I'd say the best areas to invest in right now are the areas south of the University of Memphis campus, and certain parts of Binghamton. Binghamton can be pretty rough in some areas but if you are using a property manager then it doesn't really matter since you won't be the one picking up the rent. Avoid Frazier like the plague. Orange mound can be dicey, and the areas called "North Memphis" and "South Memphis" are pretty rough as well. East memphis is high end but good deals are scarce.  Memphis is a great city and it is really recession proof; property values don't change a ton, but the cash on cash return is fantastic. 

Best of Luck,

Jack Inman

Alright guys I just wanted to post a little bit about my deal so that maybe some of you wiser folks could chime in. 

I'm paying cash (60k) for a house with 4 bedrooms and 1 and a half baths. It is currently rented at a little over 900$ a month with property taxes and insurance taking up $143 a month. The tenants (middle aged african american couple with 1 son my age who stays at the house sometimes and 1 older son in the army who does not live nearby)  have been there for 11 months and claim they have no interest in moving and claimed to have no grievances with the current landlord. The house is spotless and the yard is well kept, they both claim to have jobs, and the rent roll shows they have paid every month though some months have been a week or two late. 

Now things that make me uncomfortable: The lease is a month to month lease; the tenants have been paying the rent in two sections for the past three months (500 on the first and 450 later on in the month) and this month they paid 500 on the first but have yet to pay the second installment (450) as far as I know.  

So worst case scenario; I will get the house and have tenants who are behind payments and may cease to pay altogether. Since it is a month to month there is little commitment. 

I would love to hear some opinions.

 Assuming that the neighborhood is stable, the house is structurally sound, and the price of the house and monthly rent is around market value.