Indianapolis Vs. Memphis: Rental Market Showdown

[Snehann Kapnadak]

Hello Everyone!

I'm a first-time investor looking to invest in a buy-and-hold SFH that has stable cash-flow in an A to B- neighborhood (any appreciation would be a plus, of course!). I'm looking for properties in the 60-80k range and narrowed down my markets to Memphis and Indianapolis. After some research, I found that both have stable and growing economies, a healthy list of available properties, and good job growth. Each market also has their fair share of "bad" neighborhoods and properties. So my question for you is: which market would you recommend for a first-time investor to jump into? Which zip codes would you recommend? What experiences have you had in these two markets?

Any feedback would be much appreciated. Thank you in advance!

[Haim Mamane Palman]

interesting showdown. I invest in both of these markets and I love both. I don't think you can find A-B class properties at 60-80k in both markets and especially if you plan to buy from turnkey companies. But I may be wrong and will let the turnkey guys to weigh in. Since the numbers are very similar, My best advise to you is to focus your time on researching the property management company that will manage your property as this factor can make or break your return on investment. I purchased two properties from two different turnkey companies in Memphis. The property that I purchased at a higher priced and at a lower rent (76k at $800) performed  better than the property I purchased at a lower price with a higher rent (62k at $925) why? Mainly because of the quality of the property management company that did a better job rehabbing the property, better job screening a tenant and overall better job managing the asset. 

Good luck