Memphis Market Oversaturated with Turnkey Providers??

[Matthew Pruitt]

I'm new to real estate investing. Been looking into the Memphis market as it's supposedly a hot market for rents. But as I run the numbers on most properties, they leave very little cash flow after expenses and the mortgage. 

I spoke to a Realtor and was told that investors have been unrealistically running up home values in the area. He also told me that if he finds a really good deal he's going to buy it himself instead of letting me see it. 

Anyway, it seems like there are too many turnkey investor groups in Memphis that are buying up all of the deals, so there's nothing left on the market for investors who aren't willing to go through the turnkey groups. Has anyone else seen this? Is it worthwhile going through what's on the market and submitting dozens of low-ball offers to see if one sticks? I'm mostly looking for positive cash-flow properties, but would like to have a built-in equity position, and the lower price would obviously help with cash-flow. 

[Chris Clothier]

@Matthew Pruitt - Your profile doesn't show what market you are in.  Would Memphis be an out of state market for you?  If so, there are plenty of strong secondary and tertiary markets where you can find discounted properties that may produce a positive cash flow.

What has made Memphis so strong IS all of those turnkey companies who manage the properties.  Probably more than any other market, the Turnkey industry has been professionalized in Memphis with companies at almost every price point and level of finish.  S, what makes it attractive for passive investors makes it unattractive for active investors - especially out of state.

My advice would be to look at secondary and tertiary markets for the particular deals you are after.  You are likely to find less competition at that level.