Memphis compared to Knoxville Market for Multifamily

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Memphis compared to Knoxville Market for Multifamily

Sarah Seaton
Rental Property Investor · Knoxville, TN · Member since 2012 · 29 posts · 7 votes

I am a investor/ landlord in North Knoxville-- SFHs. We are looking at small multi-units. OR buy SFH turnkey instead of rehabbing. May need to to look outside our market to buy. Any thoughts or ideas as how Memphis compares to the Knoxville Market? Would be using a property manager if we did buy in Memphis. May have child attending Univ of Memphis next fall.. Love any thoughts or suggestions.

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James Martin
Property Management · Memphis, TN · Member since 2009 · 667 posts · 362 votes
11y

You can do very well with small Multifamily Units! If you buy in Memphis make sure that the fuse boxes have been upgraded to breaker boxes.  Know that the outside landing guard rails should be at least 42" high and if all is possible try to stay away from flat roofs (easy said than done)! Don't be discouraged by the insurance and taxes, but please be prepared. Your known enemy will be high turn over if you don't utilize some state program, bad manager, water leaks and aluminum wiring.  I hope this helps!

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    11y

    multi family in Memphis is mostly junk in bad areas of your under say $300,000. Stay away from duplex's.  Now if you can get something truly on the university area you can do well. Make sure thought it's true university as the college is in the hood for the most part. 

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  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    Hi, @Sarah Seaton.

    I can't speak to the Knoxville rental market, but we love Memphis.  @Curt Davis offers a great turnkey product here (as do several other turnkey companies including Discount Property Warehouse, Memphis Invest, Memphis Turnkey Properties, and Mid South Home Buyers).

    Small multifamily in Memphis are definitely challenging, but at the right price I wouldn't call them junk (we own and manage several 8- to 20-unit complexes).

    The U of M area offers rentals from the very low end to the high end depending how close to campus the property is.

    There are several good property managers in addition to the turnkey guys above.

    Hope this helps.  Best of luck to you!

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  • James Martin
    Property Management · Memphis, TN · Member since 2009 · 667 posts · 362 votes
    11y

    You can do very well with small Multifamily Units! If you buy in Memphis make sure that the fuse boxes have been upgraded to breaker boxes.  Know that the outside landing guard rails should be at least 42" high and if all is possible try to stay away from flat roofs (easy said than done)! Don't be discouraged by the insurance and taxes, but please be prepared. Your known enemy will be high turn over if you don't utilize some state program, bad manager, water leaks and aluminum wiring.  I hope this helps!

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    11y
    Originally posted by @Sarah Seaton:

    I am a investor/ landlord in North Knoxville-- SFHs. We are looking at small multi-units. OR buy SFH turnkey instead of rehabbing. May need to to look outside our market to buy. Any thoughts or ideas as how Memphis compares to the Knoxville Market? Would be using a property manager if we did buy in Memphis. May have child attending Univ of Memphis next fall.. Love any thoughts or suggestions.

    The only person/company I have heard on BP having success with multi-family in Memphis is @Derrick Craig.  He has a management company that manages the properties as well and I think for the most part he owns the units before he sells them so they are stabilized.  You would have to ask him if that is the case.  I would reach out to him for some context on the Memphis multi-market.  He can direct you as well if they are truly University housing if that is something you want. 

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  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    11y

    @Sarah Seaton

    I would love to speak with you about the small Multi-Family market here in Memphis TN. I have been VERY successful in purchasing rehabbing and leasing out 6 Mulit-Family properties here.

    Just PM me..

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  • Sarah Seaton
    OP
    Rental Property Investor · Knoxville, TN · Member since 2012 · 29 posts · 7 votes
    11y

    Thanks for all the suggestions!! much appreciated. I will be visiting Memphis in a couple weeks and will be having a look around.

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