Relocating to the Memphis area -should I buy this house?

Question

Hello everyone! I am active duty military relocating to Millington, TN (near Memphis). I am considering utilizing my VA loan to purchase a home in Cordova. At this time, inventory is scarce so it is definitely a sellers market. I am considering a home and I wanted to know if anyone could give me some feedback to see if this is a good or bad purchase (seller is unwilling to budge on the price) Please help!!

My perspective: as a naval officer I move every two or so years so this property would most likely be resold or rented out.

2751 N Rockcreek Parkway Cordova, TN

Thanks in advance everyone!

My perspective: as a naval officer I move every two or so years so this property would most likely be resold or rented out.

2751 N Rockcreek Parkway Cordova, TN

Thanks in advance everyone!

Raven Henderson · Answer

Hello @Jaleesa Harrigan ! How are you? You are correct, inventory is scarce and that is actually a nice property in a great part of town. I live in Cordova, TN as well. In my opinion, the property is priced fairly because of the square footage and quality of the home based on the photos. It looks to be well kept and has many updated features. On the other hand, if you have to move every two or so years if you do decide to move forward with the purchase of the property this would be a great rental property for you. The market rent is currently between $1625 - $1700. You will also want to keep in mind your commute to Millington which will be about 25-30 minutes depending on traffic. I hope this helps you. If you have any questions, I will be more than happy to assist you! Good Luck to you! :)

AJ Singh · Answer

@Jaleesa Harrigan

Millington has really progressed a lot in real estate values. i would not discount it out to live in that area

Otherwise Cordova and bartlett are great areas to live in and rent as well. they do follow the 1% rule if bought at the right price e.g. auctions, off market and wholealers.

Just wait to get to Memphis area and then make the decision. there is always a deal there.

Andrew Major · Answer

@jaleesa harrigan it depends on your market I am a numbers guy and have a spreadsheet and I collect data from rentometer, zillow, county website, and look at the city as a whole. But when it comes to it if i can conservatively input my expenses vs income and it is positively cashflowing it is good for me! It is normally around the 1% rule

Randall Weatherall · Answer

2 pennies: You could consider expending your search to Bartlett, Lakeland, and/or Arlington.

1. You may find a less-expensive, solid rental unit in one of these areas that you will be able to have more equity in by the time you leave if you want to rent it

2. If you decide to sell, Bartlett is always easy to sell in and Lakeland/Arlington are growing so that shouldn't be an issue.  Well-priced houses in these areas don't last long

3. The commute is much easier but these areas aren't too far away from the action

4. You should see houses similar in size and layout to the one you're looking at in Cordova for a little less and these areas are safe, residential areas where people want to live

Dominique Pradel-Lewis · Answer

I feel although I go by the 1% rule to quickly see which deal to analyze I don't agree with the 100 dollar per door deal,  specially if you are leaving the area and will be depending on someone else to manage the property and don't have much equity.  Do your numbers carefully and be conservative.

Jaleesa Harrigan · Answer

@Kiera Underwood okay I’ll check our how the numbers pan out. Thank you!

Jaleesa Harrigan · Answer

@Andrew Major okay great, I will give these a try! Thank you.

Kiera Underwood · Answer

@Jaleesa Harrigan reach out to a few property managers in the area and ask what you could rent it for. When you plug that number into your calculator, see if that makes sense as a rental. If so I'd go for it and keep it as part of your portfolio when you relocate. Excited for you!

Andrew Major · Answer

I like to use the calculator in conjunction with the county website, rentometer, Craigslist, and Zillow. It gives me all the key historical expenses and mg criteria is at least $100 cash flow per door. But as a quick rule of thumb I do use the 1% rule. I’ve only done this once. But I did buy it while I was in Afghanistan and had a good agent so now I’m living rent free

Jaleesa Harrigan · Answer

@Raven Henderson thank you so much for your response! I absolutely love this home and it seems to be for a reasonable price. I think my biggest worry right now has to do with renting or reselling further along the line but what you mentioned is reassuring. I’m currently stationed in San Diego so I am unfamiliar with the market in this region!

Relocating to the Memphis area -should I buy this house?

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