Memphis Market....what are your thoughts?

Question

Hello everyone!
I'm genuinely curious, has anyone found any success in the Memphis, TN area for specifically BRRRR-ing? I'm curious because the market that I'm used to is investing 220k on a run down home and refi the house for 350-400k. Memphis is really outside of my experience with homes between 20-50k.

What are the thoughts of people who are familiar with this area? Do I avoid or start investing?

Thanks!

Brian Cauldwell · Answer

Memphis can be tough. Make sure you get a good real estate agent in that market and lenders who can lend on low-value properties.

Chris Clothier · Answer

I am going to second what James Wachob said.  From your post, it sounds like you are an experienced investor, so you probably don't need my warnings or advice.  I doubt (hopefully) that you will fall for rosy numbers and sales techniques.  Again, hopefully, you have enough experience to dig deep, proceed with caution, and not be in a hurry.

Too often, investors rely on others or their "team," and they abdicate too many of their responsibilities.  The most significant responsibility is to question everything.  Ensure you thoroughly understand the market, the risks, and the reasons behind a deal that appears to be a good fit. You have to ask why a deal that pencils so well sits, waiting for an out-of-town investor to buy it.

Memphis is absolutely packed with active investors.  So, when you see BRRRR deals at low price points relative to where you live, you have to ask why?.  Memphis has homes that appear to be low-cost (often mistaken as low-risk) when compared with other areas, and specifically with cities where investors reside.  However, they are not low-cost relative to the location of the house, and Memphis is very risky at the low-price points.  An $80,000 home in Memphis may be wildly over-priced, which is why local investors are not buying.

Just be smart.  It is not as easy as it is sometimes portrayed, and probably not nearly as difficult as I am making it sound for an experienced investor who knows how to run an out-of-state project.  Connect with someone locally who can assist you, keep your responsibility in-house, and hold whomever you work with accountable to your expectations, and you should be fine.

James Wachob · Answer

Hey @Christopher Ramirez Babinski – welcome!

BRRRR can work in Memphis, but just know the numbers are gonna look a lot different than what you're used to. Also, just a heads up—be really cautious about buying in rougher neighborhoods. A lot of those deals look amazing on paper, but they can turn into a full-time job with tenant issues, break-ins, or just constant stress. It’s easy to get lured in by the numbers, but the reality can be a lot messier.

I’m a local Memphian and I’ve been helping out-of-state investors here for over 20 years. If you ever want to chat or need a second set of eyes on something, I’m happy to help.

Good luck out there!

Jordan Ray · Answer

Hey! I’m active in the Memphis market and have personally done BRRRRs here, so I can give you a boots-on-the-ground perspective.

Yes—Memphis absolutely works for BRRRR, but it’s a very different game than what you're describing. You're not going to see those same high price spreads like 220k → 400k, but what you will find is strong cash-on-cash returns and low entry costs, especially in the $50k–$115k acquisition range.

The key here is understanding hyper-local pockets. Some zip codes (like 38127, 38109, 38116, 38118, 38122, 38111 etc.) are investor-heavy, but you need to vet contractors closely and know your resale/refi values down to the street.

A typical play here might be:

• Purchase: $80k
• Rehab: $40k
• All in: $125k
• ARV: $190k–$210k
• Rents: $1500–$1750 (Section 8)
• Cash flow ~ $250–450/mo

Purchase: $80k

Rehab: $40k

All in: $125k

ARV: $190k–$210k

Rents: $1500–$1750 (Section 8)

Cash flow ~ $250–450/mo

It’s 100% doable. That said, if you’re trying to build a portfolio with velocity, Memphis is a top-tier city to scale quickly. Happy to share more if you’re seriously considering it. Good luck!

Christopher Ramirez Babinski · Answer

Chris, I really appreciate this post. This is if nothing else, very validating. I am currently building a memphis team(s). I may be taking two teams at a time to verify everything I'm hearing/seeing. Thank you again for the advice and the post. I truly appreciate it!

Christopher Ramirez Babinski · Answer

Thank you for saying that. I would just use cash so it would take the lender out of the equation. But, I am worried about not making money in those neighborhoods that I am looking at. I need someone who knows the area and knows the market. I'm hoping to find them here.

Brian Teeter · Answer

I recommend giving Andrew Akins a call also. 901-277-6567.  Memphis local, investor himself and works with a lot of BRRR buyers.  He's also very active in the Little Rock, Arkansas market

Christopher Ramirez Babinski · Answer

Jordan! This is EXACTLY what I was hoping to see! This is GREAT news!!! Thank you for sharing this! If you don't mind, I would love to connect with you and talk to you more about this market. I'm so interested in it, because it's so different than where I live (Seattle area). Thank you for taking the time to reach out!

Jordan Ray · Answer

Absolutely! I will dm you my calendar link now. Talk soon!

Memphis Market....what are your thoughts?

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