Memphis Cash Flow Doesn't Seem to Be That Great! So Why Memphis?

[Matthew Swearingen]

So I'm still doing my research on some properties in Memphis and I'm not seeing the cash flow return unless I'm missing something.

Have a few homes in the $60K to $70K range. After I put in all the numbers for a home that has an existing tentant at $800/mos I'm coming out with $261/month.

Numbers as follows:

Financing $44k

Mangement 8%

Property Tax $1500

Insurance $800

Vacancy 5%

Maintenance $60

= Cash Flow of $266/mos

Is this typical? I was hoping for atleast $400. And this is before CA taxes?

So why is Memphis great place to invest. $266/month doesn't seem impressive