Real Estate Investing Experience in Memphis, TN

[Arron Paulino]

I have been investing in the Memphis, TN market for four years now. It has been a journey and I have been cash flow positive but nothing too crazy to boast about. It's been up and down with expected repairs coming up (HVAC, plumbing, misc. repairs) that has shaken my cash flow over that time span. How has everyone else been doing in this market?

I am thinking of moving into a different market as it has been pretty stagnant for me especially due to high interest rates not making the numbers make sense in this market in my opinion. I plan to still keep the few rentals I have here in my rental portfolio, but will be doing more research in other markets such as St. Louis, the OH-state cities, and Detroit. I am thinking of changing my exit strategy from my typical BRRRR to a little fix and flip to generate some side income.

It's like I am thinking of hitting the reset button to find better results elsewhere. I even created my first LLC to start the fix and flip business, funding it with enough skin in the game, elsewhere hoping to use OPM rather than my own capital to fund these projects as it has been difficult finding a lender who is comfortable with loaning to me solely without an LLC.

My goal has always been to match my W2 income and eventually double it and more so I can work as a hobby rather than relying on it to live. I thought I would be near this place since I started, but haven't quite reached it so I am at a point of restructuring my strategy to make it more effective. Basically doing some review here to see what worked and what needs to be improved. Humbly speaking, I would've thought within 5 years something would've clicked to reach my goal. Especially looking to hear from anyone that has successfully attained this sort of goal and able to share their input.

[Travis Biziorek]

Hey Arron, how many doors do you have in Memphis? It takes some time for the cash flow to build to anything significant and you'll need more doors in these lower cost markets.

I was actually living in Walnut Creek until 2017 when we relocated to Detroit Metro. My wife started investing in real estate there (in Detroit proper) in 2019, built a 12-door portfolio, and then moved back to CA in 2022. I'm in the Central Coast now.

The cash flow is significant for us at ~$16,000 gross rents/mo and about half of that profit. But I was strategic about where we purchased and did BRRRR's.

I'm still investing in Detroit (picking up a duplex this wee) but also building an ADU here at my primary.

Happy to discuss what you've been doing and where there might be holes in your plan, ways to improve, or if you just need to stay the course.

I don't love the fix-and-flip model in these kinds of markets. There's just not a ton of margin, and IMO not worth the hassle. Shoot me a DM if you want to talk more.