Do You Know Values in Memphis, TN?

[Brett Ehart]

I would like a ballpark estimate of the value of 1934 Dessa Drive Memphis, TN 38127

[Kevin Perk]

I do not know what your investing strategy is for the property so I will tell you a couple of different things. I can tell you it is not worth anything near what the Shelby County Property Assessor says it is worth. And I would caution you on buying properties in other parts of the country sight unseen (if you have been here and toured the property than ignore this part). Property in Memphis is not undervalued! It is valued what it is due to the conditions found in our local market.

So, if you are planning to wholesale the property, it would be worth between $8,000 to $12,000. You can look here http://register.shelby.tn.us/ to find the sales records for the property.

If you are planning to retail the property, I will tell you there is no retail market in that part of town.

If you plan to buy and hold as a rental. I need to make some assumptions. I assume you can get about $675 in rent for a 3/1 in that part of town. I also assume you will have a management company manage the property for you charging about 10% of gross rents. In that section of town I would factor in a 15% repair credit and 15% vacancy credit (they will beat the property up and move frequently). I know you said it has been rehabbed, but there is always something more to be done. Factoring in your taxes and insurance I would therefore not pay more than $25,000 if it were in perfect condition, $20,000 would make me more comfortable.

I do not know you or your level of experience but I again caution you on buying property sight unseen. As president of my local REIA, I have witnessed more than one person get into trouble this way. You can make good money in real estate, and good money here in Memphis, just be sure you know what you are getting into.

Happy Investing and Good Luck,

kp1