Newbie Investor Considering the Memphis Market

[Dzung Doan]

Hello BiggerPockets Community,

I hope this message finds you well. My name is Dzung Doan, and I'm just starting out in real estate investing. My primary strategy is buy-and-hold for rental properties, aiming to create a passive income stream. I have an initial investment capital of about $35K-$50K and a monthly saving rate of around $3K-$5K. I intend to finance my investments primarily through conventional loans, with a 30-year mortgage and a down payment of 20-25%.

One of the markets I've been considering is Memphis, Tennessee. Its strong rental demand, favorable rent-to-price ratios, and growing economy are appealing to me as a potential investor.

As I'm residing out-of-state, I would like to tap into the collective wisdom of this forum to better understand the Memphis market. Specifically, I'd be very interested in hearing about:

1. The nature of different neighborhoods in Memphis and their respective investment potentials
2. Your experiences, challenges, and rewards from investing in the Memphis market
3. Your recommendations for local teams, including real estate agents, property managers, and contractors
4. Any tips or strategies that have proven successful for you in this market

Additionally, I'd greatly appreciate any advice on potential pitfalls, or critical factors to be aware of when investing in Memphis.

I am eager to make well-informed decisions and start my journey in real estate investing on the right foot. Any insights, advice, or recommendations you could provide would be immensely valuable.

Thank you in advance for your time and assistance. I look forward to learning from this community and embarking on this exciting journey.

Best regards,

Dzung Doan

[Jason Sousa]

Quote from @Dzung Doan:

Hello BiggerPockets Community,

I hope this message finds you well. My name is Dzung Doan, and I'm just starting out in real estate investing. My primary strategy is buy-and-hold for rental properties, aiming to create a passive income stream. I have an initial investment capital of about $35K-$50K and a monthly saving rate of around $3K-$5K. I intend to finance my investments primarily through conventional loans, with a 30-year mortgage and a down payment of 20-25%.

One of the markets I've been considering is Memphis, Tennessee. Its strong rental demand, favorable rent-to-price ratios, and growing economy are appealing to me as a potential investor.

As I'm residing out-of-state, I would like to tap into the collective wisdom of this forum to better understand the Memphis market. Specifically, I'd be very interested in hearing about:

1. The nature of different neighborhoods in Memphis and their respective investment potentials
2. Your experiences, challenges, and rewards from investing in the Memphis market
3. Your recommendations for local teams, including real estate agents, property managers, and contractors
4. Any tips or strategies that have proven successful for you in this market

Additionally, I'd greatly appreciate any advice on potential pitfalls, or critical factors to be aware of when investing in Memphis.

I am eager to make well-informed decisions and start my journey in real estate investing on the right foot. Any insights, advice, or recommendations you could provide would be immensely valuable.

Thank you in advance for your time and assistance. I look forward to learning from this community and embarking on this exciting journey.

Best regards,

Dzung Doan

 Here are some answers for you, I also invest in the area and would be happy to share my contacts. 

1. 1. Zip codes-
• Memphis (*Dont invest in 38002,38106,38108 iffy area)38109,38114,38126,38127*) GOOD Areas **38016,38018 38117,38118,38128,38133,38134,38135,38016, 38111 University area is ok for students and midterm rentals.
2. 2. Memphis is the king of cash flow in my opinion. If you want, there is also a ton of BRRR deals too.
3. 3. I use Renshaw for PM, Odyssey construction for maintenance and two agents, one regular agent and one wholesaler. 
4. 4. Build a team first, then invest.