Areas in Memphis,TN where " Average " rent = $1,100 - $1,300 ?

Question

Can other Investors/Landlords in the Memphis,TN area, recommend any particular Zip Codes / Neighborhoods, of which Rents usually go for  $1,100  -  $1,300  as the Average  ( Assuming Purchase Price of these homes are around  $100,000 -  $130,000  )

I am Looking at buying my Primary Residence in Memphis,TN  , and I want to make sure that I buy in an area that I will be able to charge rents in the  $1,100  -  $1,300  a month range )

I'm thinking ..... 38117, 38111, 38122  ZipCode areas ?

Either 2 bed 2 bath houses or 3 bed 1 and a half baths  ( as the minimum ) .  Would prefer  3 bed 2 bath , but not sure i can get this type of property given that my Budget is  $100,000 -  $130,000  ( This price range is the month I can afford/qualify for via the DTI  )

Thanks so much for any and all help and recommendations

Julia Blythe · Answer

Midtown is a hot area for flips and rentals. I not only live in midtown (Central Gardens) but invest in midtown. Rentals in the ~$1,300 per month range get snatched up in a hurry.  If you choose to buy a house that will eventually be a rental in midtown, my advice is:

1) Buy a house with 2 full baths (2/2 minimum but 3/2 is ideal). The house doesn't have to be huge, but having 2 full baths is very in demand.  Often it is 2 roommates who want their own space.  I've seen many half baths be made into full baths by being creative with the space.  There are some corky houses in this market so you have to think outside the box.

2) Most renters who want a house in midtown want a small fenced yard for a dog.  Many times that's why they want a house versus an apartment.

3)  In midtown, it's all about location, location, location.  One street over in the wrong direction can make a huge difference -- no exaggeration!

My parents live in Germantown and I know that area very well, as well.  I'm often shocked at prices per square feet in midtown versus Germantown.  For some reason, midtown is the trendy place to live and since more than 1/2 of the people in Memphis rent, it is definitely a lessor's market in my "hood".  The most important thing to consider is LOCATION, LOCATION, LOCATION!!!!

Dean Letfus · Answer

Cordova, Bartlett, Lakeland and Germantown. 38117, 111 and 112 have some great areas but some are funky. As far East as possible is safest long term. There are exceptions like Cooper Young and Midtown but you need to know which streets etc. to be in so a bit trickier to pick from afar.

38119 and 38120 are great areas that sometimes have homes under 150K.

Dean Letfus · Answer

Oh OK.  In New Zealand we would say quirky :-)

Alex Craig · Answer

I own one on N. Parkway that I get $1,395.  You could find a house for under $130,000 in 38119, likely not in 38120.

AJ Singh · Answer

i agree with @Dean Letfus

cordova and bartlett have rentals in that range.

if you have kids still in school, the school district in germantown and coullierville is better

Devin Davis · Answer

some parts in 38125 have average rents in that range as well

Julia Blythe · Answer

@Dean Letfus - Corky = cute + dorky all rolled into one 🙃

We are currently flipping a house not far from your Bruce house on Felix in CY.

Dean Letfus · Answer

@Michael Dunn it might be easier for you to put up properties you consider here and we can advise on location. It's just hard to say this is OK and this isn't in many places. We own homes close to Cooper Young on Bruce St for example. Where we are is a great location. 1 block down Bruce though it changes completely and you wouldn't want to be there.

Dean Letfus · Answer

@Julia Blythe, corky is a new expression to me, what does it mean?

Michael Dunn · Answer

Julia Blythe ,

Thank you so much for all of the Advice and tips, very informative.

A few things I'd like to ask/run by you please......

1. To get Rent in the $1,300 range ....... What Price Rage of the Property ( Purchase Price ) would I be looking at ?  Stick to looking at Properties in the  $95,000  -  $120,000 rage  ( This assumes the ARV ) ?

2. Great advice on the Bed/Bath being that 2/2 is the minimum .  I have heard too, that alot of the times it's roommates that move/Rent a house in Midtown , and therefore having at least 2 bathrooms is ideal

3. Definitely looking to put a Fence up , no matter what property I get.

4. The Street I decide to Buy on / Rent out later is very Key s you mentioned.... It really is all about Location Location when it comes to buying in the Midtown area.

Given that it is , Here is a List of Streets I am currently Looking to see if any Properties are for sell on them. Of the ones listed, are there any that You Strongly recommend I DON'T buy on , and any of them that you Strongly recommend i DO buy on ?

They are ............   Linden Ave. , Carr, Ave. , Harbert Ave. , Cowden Ave. , Hubert Ave. , N. Willet St. , N. Avalon , N. Watkins , Tutwiler , Washington Ave. , Court Ave. , Madison Ave. , N. Evergreen

Midtown ( Madison and Copper St. ) are definitely the " It " places right now , especially for the younger Millenials to hang out and wanting to live .

So I am trying to position myself , by Purchasing in a Desired area NOW , so that I can easily Rent out the Property at a nice Monthly Rental Rate ( $1,100 - $1,300 )

I would even be willing to purchase a Duplex or Multi-Family residence ...... All of course Depends on the Location of the Property  :)

Thank you again for all of your time and help - Michael

Areas in Memphis,TN where " Average " rent = $1,100 - $1,300 ?

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