Memphis: Long Term Prospects

[Scott Bolinger]

Hey guys, I own a property in Memphis and I'm looking into buying more there.

The cash flow is incredible, but I'm concerned about where the market will be in 20 years. It seems like everybody and their brother is getting cheap properties that cash flow, it's almost too easy. 

The market fundamentals seem ok, population and job growth is slow but positive. I'm worried it's this investor bubble that's all just gonna pop someday. I don't have any data to support this, it's just a feeling.

Am I totally wrong?

[Bill Manassero]

@Scott Bolinger I, too live in Mission Viejo and invest in Memphis .  I really love it for many of the same reasons already mentioned here in your post, but I'm also in Indianapolis and Atlanta -- and looking at other markets as well.  I believe it's wise to be geographically diverse as an out-of-state investor (avoiding the "all your eggs in one basket" scenario.  

Memphis is what some investors call a "linear" market - a solid, bread and butter, cash flowing market. It's geographic location and many other factors make it attractive for investors. But it definitely has it's glitches. One SFR property I bought for $62K in what I thought was a solid blue collar family neighborhood, assessed, one year later, for even higher for a cash-out re-fi. Today, it's listed by Zillow (not always a reliable source) at $28K because of a flood of recent foreclosures. You just have to buy smart and carefully do your homework.