Crosstown Concourse Memphis, TN rehab and flip potential

[Julia Vang Hart]

I would love to get some opinions on the real estate northwest of the Crosstown concourse development. Over the weekend my husband and I drove the area north of North Parkway, south of Jackson Avenue, east of Watkins Street and west of 40/240 loop. There are so many beautiful craftsman built homes withing that 12 block area. Having said that the area appears to be one of object poverty, the homes are dilapidated with unkept lawns and trash strewn on the streets and it's an area of high crimes.  In spite of all that there's some gorgeous homes there screaming to be restored to their former glory. I want to save these beautiful homes. If money were no object I'd buy up everyone of them and rehab them. 

Does anyone think the development at the Crosstown Concourse will spill over and have a positive affect to this area?  The Crosstown Concourse will be a mix used development. The old Sears building is being rehabbed and will house a high school, residential living, business offices and shops and is slated to open in 2017.

So since the Crosstown concourse is the biggest rehab job in the area will the homes north of it also be rehabilitate-able? Am I barking up the wrong tree? Is the area a lost cause? Should I invest my time and resources elsewhere?  

[Alex Craig]

@Julia Vang Hart that area is very hit or miss. I am trying to connect the dots of the area you looked. The area North of Parkway, South of Jackson, East of Watkins is a good area with very good comps.  We manage several North of Jackson, but South of Henry that do well and rent quick. The values drop once you cross Jackson, but still good area. We recently rented a 3 bed 2 bath on Stonewall, north of Jackson for $950. We get $850 for a 3/1 on Dickinson, also North of Jackson. When we cross North of Jackson we stay in between Stonewall and McLean. I just bought 1447 Parkway for $52,000 and putting about $70,000 into it.  Bank appraisal came in at $167,000, which I believe is accurate. I just listed my 3 bed and 2 bath house for $1,495 and we are getting a ton of leads and appointments. I rehabbed this house very nice keeping in mind the value and better rehab will get me higher rent/better clientele. Rehab included granite in kitchen, upgrades in ceramic tile, new cabinets, create a informal dining space in kitchen with granite bar, all new window, architectural shingles, upgraded vanities, etc.  I am going to keep it for my portfolio as I do think the crosstown project will increase the values.  This is a 280,000,000 project bank rolled mostly by private investors.

The other area you are talking about (west of 240/40) is not good and once you head West off Cleveland it gets hit or miss. I would try to stay East of 240/40, actually I would stay East of Bellevue. 

Memphis in general is about the neighborhood and not the area and certainly not the zip code. As you move to Mid-Town it really gets complicated.  The right areas in Mid-town are premium places to invest if you can get in the right street (notice I did not say area).