Memphis TN rental market - high vacancy?

[Diane Tycangco]

Hi guys, I am thinking of investing in SFR in Memphis. I have been doing my research and am so shocked to discover that average historical vacancy is 10-15%. Is this true in your experience?

How hard is it to evict a non-paying tenant, find a new tenant?  What are the rentals that are in demand in this market?

Are there a lot of delinquencies due to covid?

What are good areas to invest in in Memphis?

Would a $100k house be an investment in a good area?

What has been your experience with the Reedy Investment Properties?

Thanks a lot for any info!

[Stephen Akindona]

@Diane Tycangco those vacancies rates are ridiculously high! I don’t experience that in my own personal portfolio and the 400 homes or so that we manage don’t have vacancy rates this high. We are at about 5%. It will depend largely on the area in which you invest.

I would say 100k would get you strong sold C+ properties in bread and butter rental areas. Try to buy properties that rent for $700 a month or more. I think as your rent starts to be below $700 you start to get into rougher more unstable areas which come with tougher and more unstable tenants!