Memphis TN buy and hold?

[Chris Hutchens]

Hi everyone,

I am interested in buying a few homes in Memphis TN they will all be buy and hold.

Is this a good market for my first few rentals?

I am primarily looking for good neighborhoods and would like some advice as far as where around Memphis others have investments and what parts of Memphis are better than others.

Seems like appreciation is not very good so I would be mainly going for cash flow.

I am also wondering about vacancy rates in general in the Memphis area. Are your homes filling up fast or does it take a little while? I will be using a property management company also so recommendations would be great!

All thoughts and ideas are welcome!

Thank You, Chris

[Stephen Akindona]

Hello @Chris Hutchens! Welcome to the site! Of course I am going to be bias because I live here and invest here but Memphis is a great cash flow town! I would most definitely caution you against the 35-40k range properties that you can pick up on the MLS. Buying a house for 40k that is worth much more than that is not the same as buying a house that has a FMV of 40k. As an out of state guy you want to buy something that will cash flow but also comes with ease of management. Something that will cater to a very stable tenant class so you actually realize your returns. Buying in the low cost areas have great paper returns but are rarely actualized by out of state guys! If you lived here and was going to get heavily involved in the management of your portfolio then your chances of success are much higher. Look for strong C+ to B+ neighborhoods and invest there. Anything that will rent from about $750-$1200.