Is Memphis, TN 38127 Neighborhood Safe to Invest?

[Eagle Yeh]

Dear BP community,

I am looking into new constructions in Memphis, TN 38127. It's not an area I am very familiar with. I would like to seek feedback if anyone invests here or knows about the area.

Thank you!

[Monica Bynum]

Since Memphis is a street by streets case where is the new construction going to be. There are still decent pockets in Frayser. 

[Chris Clothier]

Quote from @Eagle Yeh:

Dear BP community,

I am looking into new constructions in Memphis, TN 38127. It's not an area I am very familiar with. I would like to seek feedback if anyone invests here or knows about the area.

Thank you!

38127 is a large zip code.  Where exactly is the newly built house?  

[Dean Harris]

38127 can be a great zip code to invest in. There are certainly some opportunities for "Value Add". However, there are some sections that you want to stay away from. I own a few there now but anything west of Highway 51 has historically been extremely tough. If you try to stay with a brick house that has at least 3 bedrooms and it is east of highway 51, you should be just fine if you buy it right.

I just completed my annual zip code break down on my podcast based on my personal investing experience. I

Best of luck!

[AJ Singh]

@Eagle Yeh

38127 is a tough zipcode. i would leave it to the local investors . The only reason you are getting a bite at this is no one local wants it. There are slim pickings in value add or wholesale plays nowadays. 

Try to buy in better suburbs like Cordova, Bartlett, collierville, Southaven, Olive Branch etc. these are great neighborhoods for equity and cash flow. you should be able to get a starter house in 150k to 175k and yielding 1300 to $1500 a month. rents have shot up in good neighborhoods of memphis over the last 3 years.

[Foti Karastamatis]

Quote from @AJ Singh:

@Eagle Yeh

38127 is a tough zipcode. i would leave it to the local investors . The only reason you are getting a bite at this is no one local wants it. There are slim pickings in value add or wholesale plays nowadays. 

Try to buy in better suburbs like Cordova, Bartlett, collierville, Southaven, Olive Branch etc. these are great neighborhoods for equity and cash flow. you should be able to get a starter house in 150k to 175k and yielding 1300 to $1500 a month. rents have shot up in good neighborhoods of memphis over the last 3 years.

Look into joining (MIG) Memphis Investors Group. Nonprofit with 350+ members from all over the country. Lots of great local info. Monthly zoom meetings and weekly "lunch with the pros" calls. I live in Collierville. Fantastic town. 

[Alex Evans]

Hey@Eagle Yeh

38127 is a large Zip Code and a lot of it that we do is on a street-by-street basis. If it is west of Highway 51 we will be more cautious and if it is in the northern part near the Links at Davy Crocket golf course we will also stay away from it. 

Everywhere else up there we will do properties. Where are you looking at buying?