Eyeing up Memphis, TN

[Chris LumLee]

Hi,

I've got my eye on Memphis, TN (Whitehaven) for my next rental property. I'm looking at Zillow for listings and a lot of houses looks really nice so I wanted to get feedback from anyone in the BP universe to see if anyone knows of which neighborhoods I should stay away from? I'm also hoping to learn what successes anyone here has had in Memphis?

THANKS!

[Jack Inman]

LumLee,

Yeah I manage some properties and own a couple houses myself in Memphis. I'd say the best areas to invest in right now are the areas south of the University of Memphis campus, and certain parts of Binghamton. Binghamton can be pretty rough in some areas but if you are using a property manager then it doesn't really matter since you won't be the one picking up the rent. Avoid Frazier like the plague. Orange mound can be dicey, and the areas called "North Memphis" and "South Memphis" are pretty rough as well. East memphis is high end but good deals are scarce.  Memphis is a great city and it is really recession proof; property values don't change a ton, but the cash on cash return is fantastic. 

Best of Luck,

Jack Inman