Criteria for multi-family in Memphis

[Jeff Mills]

I was just curious for those investing in Memphis, do you have a minimum for the rent amount that you will purchase? For example I'm currently looking at a duplex that will rent for around $550 each. I know some property managers will have a minimum rent they will take on but do any investors out there have a minimum as part of their criteria?

I'm a little bit worried about quality of tenants at that price. Should I be?

[Jack Inman]

From what I've noticed, once you dip below the 600 dollar range the quality of tenants drops off pretty quick. I know a local investor who only buys duplexes and he has great luck, but it can be very hit or miss with the tenants.