Investors in Memphis TN??

Question

Hello All!!

I recently watched a bigger pocket video on cashflow unicorn areas. this is my main goal because I want to leave my 9-5 and invest full time. many of the areas that were mentioned have very high crime rates over the last 10 years. memphis TN is one area I would be very willing to invest in but after checking city Data I am a bit Leary. anyone have experience investing in memphis and what are things to watch out for. definitely trying to avoid areas where maintenance, pest eradication, eviction or tenant damage eats away at all cashflow. Any thought??

Mike Mosee · Answer

Hi Shira

We've been investing in Memphis successfully since 2011 in both sfrs, duplexes, small apartments, but you MUST have people you can trust there to pick the right areas &  good property management or it will go wrong.   Mid South Home Rentals, Chris Peak, is who we use.

Good luck,

Mike

Tony Clark · Answer

@Shira Albert I absolutely agree with the above statement. I am an investor and an agent and Memphis can be a tricky city to navigate, but the rewards are there. Anywhere you invest you will need to have a strong team, but Memphis especially having boots on the ground that you can trust is a must. The cashflow is great and I really believe that through the growth in the city that the appreciation will continue to be there for investors, it’s just all about having a team to protect your asset if you decide to purchase there. I’m happy to answer any questions you have, or offer any recommendations that might be helpful, best of luck!

James Wachob · Answer

Memphis is definitely a city you need to know intimately. I live in the heart of Memphis in the 38111 zip code. The northern half of this zip code is seeing double-digit property value increases. However, the southern half of this same zip code has a lot of room for improvement.

Many duplexes are in areas that are less than desirable - consult a local investor with experience to act as your "boots on the ground"

Shira Albert · Answer

@Tony Clark. That would be great to connect.. I really love TN and have family in Murfreesboro. This has always been an area I've been interested in. I'd love to hear you thoughts and recommendations about the first people on the team to establish there.

Shira Albert · Answer

Thanks Mike . Ill definitely give them a call.

Shira Albert · Answer

Thanks so much for the honest feedback. I'll keep doing my research and build up key resources there.

Arthur Neves · Answer

@Shira Albert maybe I am biased, but a few partners and I like the area. We finished a 40

Units building that we purchased for $10K/unit. We spent a lot of money and time, so it was a hard project. But you can’t find those opportunities in FL where we live.

I don’t have full numbers yet, as we are starting to move tenants in, but we should get 100% money out after refi at less than 60% ltv, which will bring a good cash flow from my estimates.

Glad to share numbers in the future.

Also we don’t find those MF anymore in the areas we wanted there. But still know a few.

So my take is that you will purchase low and eventually the city will come around.

Investors in Memphis TN??

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