South Memphis Four-Plex

[Arthur Crum]

Hello! 

I'm fairly new to BiggerPockets and looking for some advice. I'm excited to announce that I'm about to close on my first multi-family unit, a value-add Du-Plex! I will occupy one side as my primary residence to eliminate a mortgage payment. The other side is already occupied and paying $950 a month. Market would yield $1200 but I don't want to go pissing off a 5 year tenant who pays on time (at least not yet anyway).

But I digress...I'm hoping to close on another multi-family unit shortly after the acquisition of the duplex. This property is going to be a four-plex somewhere out of state (I live in MD and RE is too overpriced in my market). Anyway, I'm looking at South Memphis as you can pick up a four-plex down south just north of $100K which would be perfect. 

Does anyone here have experience in this market? I know Memphis is a notoriously rough area but I'm from Baltimore and have a pretty good idea what I'm getting into. Anyway, is it worth the hassle to pick up roughly $2000 in cash-flow or should I save my money and try to buy more units in a better area? I really need the cash-flow to fund my real estate business (I'm an agent). Having no mortgage in addition to even $1500 a month is cashflow would be huge for me as I have no debt. My next purchase would be to step up into a commercial loan (4-6+ units) but that's a ways away. I can't afford the down-payment for anything more than $175K. Open to any and all suggestions!!!

- Art