Are Multi Family Units Better Option in Memphis.

[Matthew Swearingen]

It was mentioned that multi family units are a better option as far as cash flow than SFR? Any thoughts?

Also, as far as Tennessee, are there areas that provide decent cash flow with decent home appreciation? 

It seems that Memphis does not seem to have the appreciation.

Thanks

[Steve Frye]

I agree with Memphis not having the appreciation but you can get good cash flow in that market going in and value adding class C properties since the prices are generally lower.  Biggest thing to watch out for is the area of town.  You can easily get something in the wrong neighborhood that might suffer from heavier damage and use over time and not appreciate.

Multi-family properties in Nashville core will appreciate but difficult to cash flow.  There are areas 30-60 minutes from Nashville (Clarksville, Springfield, Tullahoma, Columbia, etc.) that you can cash flow but also benefit from appreciation as the population of Nashville continues to push out.