All Forum Posts by: Jordan Ray

Wow! That is definitely a good reason why you NEVER skip a final walkthrough! Job well done!

Wow! That is definitely a good reason why you NEVER skip a final walkthrough! Job well done! 

Welcome to BiggerPockets, and thank you for your service! A lot of military buyers face the same question — buy where you’re stationed now or start building a portfolio in a more affordable, landlord-friendly market. San Diego is a tough place to hit positive cash flow, so you’re right to weigh your options carefully.

One reason so many active duty and PCS’ing service members invest in Memphis is the affordability and strong rent-to-price ratios. You can still find properties that meet the 1% rule, which is nearly impossible in markets like San Diego. On top of that, BRRRR is very doable here — with hard money lenders funding 100% of the purchase and 100% of the rehab, investors are usually only in for about $10K out of pocket per deal. That makes scaling while moving every few years much more realistic.

The key, especially for out-of-state military investors, is having local expertise you can trust: an investor-friendly agent who also owns rentals, partnered with a strong property management and contractor team. That gives you the eyes on the ground you need so you don’t feel like you’re gambling while away on orders.

If you'd like, I can share how other active duty investors are structuring their first Memphis deals and setting themselves up to scale while still serving? I also am a Veteran and got started by leveraging my VA loan so I am happy to elaborate on all possibilities! Reach out if you have any interest in Memphis! Talk soon!

Welcome to the community, Rudy — love seeing someone come in with a clear buy box and capital ready to deploy. Memphis is a great choice for exactly the reasons you mentioned: strong rent-to-price ratios, landlord-friendly laws, and plenty of fix-and-hold opportunities that fit the BRRRR model.

With your criteria (3/1s and 3/2s, all-in under $90K, rents $1,100+), you're right in line with what a lot of out-of-state BRRRR investors are doing successfully here. The financing side makes it even more attractive — hard money lenders in Memphis often cover 100% of the purchase and 100% of the rehab, which puts most investors in for only about $10K out of pocket per deal. That structure is why so many people scale portfolios quickly here instead of tying up all their capital in one property.

The biggest advantage you can give yourself is leveraging local expertise. Working with an investor-friendly agent who also owns rentals, and who partners daily with property managers and contractors, gives you the most eyes on the ground. That’s what keeps rehab budgets in line, gets units rented fast, and avoids the headaches that make some people nervous about out-of-state investing.

I work with a lot of out-of-state BRRRR investors in Memphis and can connect you with the exact pieces you're looking for — investor-friendly management, vetted contractors, and deal flow. Happy to share how others in your same position are structuring successful projects here. Reach out if I can be of assistance! Talk soon!

 Thank you @Robert Bell for the recommendation! 

That is totally fine too! I am helping a quite few out-of-country investors build their portfolios as well currently and I am very aware of the nuances that come with that factor alone from only being able to acquire funding up to a certain amount on your refinance, restrictions with the type of loan and structure, and other variables. As of right now, I have several out-of-country clients: Got some from New Zealand, England, Israel, and Canada and these guys are not afraid of the distance while working along side me.

Hey @Edward Dandrea congrats on the 5-unit and trailer, that’s a solid start! You’re right that Memphis pops up a lot for out-of-state investors, and for good reason: it’s landlord-friendly, rental demand is steady, and you can still find properties in that $110K–$150K range that hit the 1% rule. Deals under $25K exist too, but those usually come with heavier rehabs and tougher tenants, so it’s important to be selective.

The financing structure here makes it easier to scale as well. A lot of BRRRR investors in Memphis use hard money lenders that cover 100% of the purchase and 100% of the rehab, so on average you’re only about $10K out of pocket per deal. That’s how many out-of-state buyers build multiple doors quickly without draining their savings.

Your biggest concern — management — is spot on. That’s where most people trip up. The way to protect yourself is by leveraging local expertise: working with an investor-friendly agent who also owns rentals and has a network of vetted property managers and contractors. That gives you the most eyes on the ground, keeps you from overpaying on repairs, and ensures you’re not just handing your asset over to a random large management company.

If you want, I can share how other out-of-state investors I work with are structuring their first Memphis deals and what to look for when picking a property manager. Having the right local team is what makes or breaks out-of-state investing. Looking forward to chatting with you!

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $101,000
Cash invested: $2,188

Closed with only $2,188 using a 100% purchase & rehab hard money loan and also had my closing costs wrapped into my loan! Renovation took 3 weeks and I had it marketed in "Coming Soon" on Zillow and rented to a TBRA tenant for $1,781/month and they moved in literally the day after my general contractor completed the renovation! TBRA is another HUD program that is kind of like Section 8 (MHA) with 1 thing I like better... they pay the 1st months rent and the security deposit the same day as a passed inspection! To summarize this deal: $101K purchase + $20K rehab then it appraised for $165,000. Rented for $1,781 before the 1st mortgage payment. My cash on cash return is wild at 210.42%!!!! 🔥🔥🔥 Talk about a unicorn deal! 🦄

Welcome to BiggerPockets Nicolás Eduardo Larach León! — that’s a great book to start with, and you’re asking the right questions early on. You’re not wrong: in a lot of higher-cost markets, hitting even 0.5% rent-to-price is the norm, which makes it really tough to cash flow from day one.

That’s why many investors look out-of-state to places like Memphis. Here, it’s still very realistic to find properties that meet or even beat the 1% rule, which is exactly the math Brandon Turner uses in his examples. On top of that, a lot of BRRRR investors here leverage hard money lenders that cover 100% of the purchase and 100% of the rehab, so they’re usually only about $10K out of pocket per deal. That structure makes positive cash flow and portfolio growth much more achievable than in high-cost markets and increases your overall cash-on-cash returns!

The key to protecting yourself when investing out-of-state is leaning on local expertise: hiring an investor-friendly agent who also owns rentals and works closely with property managers and contractors. That way you’ve got real eyes on the ground helping you vet deals, run numbers, and keep rehab projects on track.

If you’d like, I can share examples of how out-of-state investors are structuring deals like this in Memphis to actually hit those rent-to-price ratios you’re reading about? Let me know! Talk soon!

I’m definitely seeing more STRs popping up here in Memphis, and a newer strategy that’s taking hold is what people are calling the “AirBnBRRRR”—using the BRRRR model but pivoting the exit into short-term rentals. Even some turnkey STRs are starting to pencil out profitably in the right neighborhoods.

I personally partner with a local STR management company that has this down to a science—they handle everything from pricing optimization to guest turnover—so investors can scale without it turning into a second job.

Would love to connect with you further if you're serious about building out an STR portfolio in today's market. Memphis has some unique dynamics that make this work really well, especially when you have the right boots-on-the-ground team.