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Updated almost 12 years ago,
What is with Memphis?
I've already posted my bad experience with investing out of state in Memphis. Horrible tenants! Some on this board who SELL the "turnkey cash flow in Memphis" dream to out state (or country) investors come on and just say it depends on the neighborhood. Blah! Blah! Blah!
Well just happened again. Tenants moved out after two years and now the appliances are missing!!! Talked to my current PM (really like the guy and his upfront nature) and he said this is why his company DOES NOT PROVIDE APPLIANCES IN RENTALS.
So again, I will repeat what I've been told by three separate PMs about Memphis tentants. And remember these are people who have had to deal with the tenants in this city for years. Long after the turnkey hucksters disappear:
1. "We don't replace or provide appliances. The tenants will just steal them, and they know they can get away with it. The police won't do anything."
2. "9 out of 10 rental applicants in Memphis have poor credit and rental histories."
3. "You'd be hard pressed to find a rental applicant that doesn't have at least one financial judgement against them.
And, apparently, it doesn't depend on the income level of the neighborhood. My one property rented for 1200 a month and is a very nice neighborhood.
Bottom line: Yes, lots of renters in Memphis (45% is the figure much touted by sellers). That's the good news. Bad news is that they suck. Figure it this way. Homes are cheap in Memphis. Then why so many renters? Why? Because there is an INORDINATELY high percentage of folks in Memphis who financially irresponsible. That's the LOGICAL way to think about.
You have to figure in all of the above into your thinking process before deciding to invest there, or anywhere else.
PG