Is Cordova, TN 38018 a good place to invest?
Most Popular Reply
Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votesWhile I do not disagree that Cordova is not the area it used to be as investors have bought heavy, the reality is, Memphis is a city that is going to have 50% + renters and Cordova will fit right into that. Cordova looked like the place to live up until 2008 and all of a sudden everyone found out they were severely underwater. There are still a lot of retail sales, much more then most of the other areas where investors look for cash flow. Ikea though highly enough of Cordova to open their first TN store and Dave & Busters will be opening in Cordova too. Cheesecake factory opened up to and is doing a ton of biz. Gus's Fried Chicken is getting ready to relocate their Bartlett store to Cordova and I am confident they will do $3,000,000 in sales. That is a ton of chicken. I am rarely out in the area, but I do like J Alexanders and that place is always packed too. One would not drive down Germantown Parkway and think "area of decline." I think it would be better described as an area that peaked and has come back to reality of what the Memphis market is in the sub $140,000 market. My thought on Cordova is that South Cordova is better and as you get closer to Wolfchase, the area gets even more saturated because hedge funds love homes built after 2000. We manage a few homes in Countrywood and that area continues to get $1,295 to $1,450 for 3 to 4 bed homes. We added granite to our Countrywood home along with vinyl plank flooring which gives a clear advantage to other homes in the area. Also manage a few homes just North of Countrywood and get $1,795 for one of those homes to a tenant that has been there for almost 4 years now. Cordova is certainly an area where upgrades such as granite work well. I would warn heavily into thinking one can buy out there and provide a home that looks like the rest of the rentals and not expect to have longer periods of vacancy. If that is the plan, then I suggest getting with a property manager that is good at marketing and knows how to get homes rented in these type areas.
@Jasmine Norris I agree with your areas, but for investors who want to own a large portfolio of homes will see several other good cash flow opportunities pass them. Keep in mind near the U of M area, there is new development apartments and condos that will be more attractive then some of the older homes for students that want to live within walking distance to the U of M. I own a triplex on Kearney and for the first time in 3 years, I had a vacancy go 30 + days and I fixed up that place up with our standard footprint. I have been buying homes for my own portfolio and would love if I had an all Germantown and Collierville portfolio, but I would also not have very many properties if I took that approach. I own 2 in Collierville and have never found a cash flow deal under 200k in Germantown where the #'s are good. CBU is good, but same deal, hard to find cash flow properties and your area to buy basically consist of the area close to Toby field .
13 Replies
- 9yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
this is a good area to invest. For a price tag of $170k I hope the rent is very good for this one your considering. Also should be newly renovated.
Good luck
Curt Davis - KAIZEN Realty538 Reviews - Thanks Curt. Do you think 170K for a 4 bed 2 bath is at the high end for this area? This one is a short sale and has been on market for sometime. My agent told me it is under market value. The rent is estimated to be 1.6K per month close to 1%. Does this area has potential for appreciation? Thanks
- One of the best places to buy and hold Though $170k is a high price point Even for $1600 potential rent. Since it is vacant you don't know what it will rent for @alex Craig @chris clothier can give advice
- Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes9y
I would not say this is one of the best areas to invest in. It is certainly not a bad area but in my opionion there are better areas in the city where you can get better returns. Actually what you will find in a lot of the Cordova area is actually a market decline. The areas are quickly being taken over by investors, so an area that has traditionally been an owner occupant area is becoming a rental area. When that happens you actually see a decline before that market levels out. Still a good place to invest just have to be careful to buy right.
- Real Estate Investor · West Columbia, SC · Member since 2016 · 32 posts · 13 votes9yI actually grew up in and graduated from Cordova high school in Cordova, TN. Cordova used to be a really nice area and is on the decline. If you are going to hold in Memphis you should target around the u of m and cbu areas, Germantown, and collierville. You could buy a large home in the u of m area and easily rent each room for $500 a month. It's so hard to find good affordable rent the students would pay you 6 months in advance.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
While I do not disagree that Cordova is not the area it used to be as investors have bought heavy, the reality is, Memphis is a city that is going to have 50% + renters and Cordova will fit right into that. Cordova looked like the place to live up until 2008 and all of a sudden everyone found out they were severely underwater. There are still a lot of retail sales, much more then most of the other areas where investors look for cash flow. Ikea though highly enough of Cordova to open their first TN store and Dave & Busters will be opening in Cordova too. Cheesecake factory opened up to and is doing a ton of biz. Gus's Fried Chicken is getting ready to relocate their Bartlett store to Cordova and I am confident they will do $3,000,000 in sales. That is a ton of chicken. I am rarely out in the area, but I do like J Alexanders and that place is always packed too. One would not drive down Germantown Parkway and think "area of decline." I think it would be better described as an area that peaked and has come back to reality of what the Memphis market is in the sub $140,000 market. My thought on Cordova is that South Cordova is better and as you get closer to Wolfchase, the area gets even more saturated because hedge funds love homes built after 2000. We manage a few homes in Countrywood and that area continues to get $1,295 to $1,450 for 3 to 4 bed homes. We added granite to our Countrywood home along with vinyl plank flooring which gives a clear advantage to other homes in the area. Also manage a few homes just North of Countrywood and get $1,795 for one of those homes to a tenant that has been there for almost 4 years now. Cordova is certainly an area where upgrades such as granite work well. I would warn heavily into thinking one can buy out there and provide a home that looks like the rest of the rentals and not expect to have longer periods of vacancy. If that is the plan, then I suggest getting with a property manager that is good at marketing and knows how to get homes rented in these type areas.
@Jasmine Norris I agree with your areas, but for investors who want to own a large portfolio of homes will see several other good cash flow opportunities pass them. Keep in mind near the U of M area, there is new development apartments and condos that will be more attractive then some of the older homes for students that want to live within walking distance to the U of M. I own a triplex on Kearney and for the first time in 3 years, I had a vacancy go 30 + days and I fixed up that place up with our standard footprint. I have been buying homes for my own portfolio and would love if I had an all Germantown and Collierville portfolio, but I would also not have very many properties if I took that approach. I own 2 in Collierville and have never found a cash flow deal under 200k in Germantown where the #'s are good. CBU is good, but same deal, hard to find cash flow properties and your area to buy basically consist of the area close to Toby field .
- Investor · Memphis, TN · Member since 2016 · 24 posts · 27 votes9y
@Jasmine Norris I'm not sure what metrics you're using to conclude that Cordova is on the decline. Cordova is a solid B+ to A- area. @Alex Craig is correct that many people in Cordova got caught up around 2008; my own mother being one of them. Cordova, as with much of Germantown, Bartlett, and Cordova, does not fit the traditional Memphis mold of strong cash flowing properties persay, but if bought right, there's still a ton of upside here. That area is not in decline. It's merely a different asset class in a strong Memphis investor marker. If you think Cordova is on the decline, I'd probably cringe at your assessment of 38127 where I have several strong cash flowing homes.
As far as the UofM area; do you currently own investment property there? If so, then your feedback is much appreciated, but if you're not in that arena i don't know that it's entirely productive to generally say on this forum that any area is one way or another, or that you "can get ______ for _____" in an area where one is not an active investor. This isn't a rant by any means, but if I were considering deals in the UofM or any area, I'd want a synopsis by someone with skin in the game there. Less nostalgia, more [real] #'s.
All the best to everyone as always
- Investor · Memphis, TN · Member since 2016 · 215 posts · 128 votes9yYou can surely find a better return on investment! Not to discourage you, but a "potential" $1,600/mo for a 170k investment isn't all that great of a deal. I would shoot for an "all-in" price around 140k, or you could drop to a c/d class neighborhood and have a reputable PM company run it for you. You could easily purchase 4 homes in such areas that could yield around $2,500/mo minimum! If you are insisting on a property in cordova, there are many homes in the 140k range that could yield your desired return. Speaking of, I currently have a nice 4 bedroom 2 bath home that needs nothing more than some updating in the country wood area for 119k. Memphis
- Investor · Memphis, TN · Member since 2016 · 24 posts · 27 votes9y
@Rashard Alomari pm me the specs on that house if you still have it.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
@Fernando Parker agree with your comments, but not sure about the 38127. It is well beyond an area in decline. I know Mayor Strickland has put together a plan for Frayser, hopefully it works, but I am skeptic because so many of the houses are renters without skin in the game. Typically homeowners have to take their neighborhood back. I hope I am wrong. Frayser has some great houses (all brick, carports, hardwood floors, etc) and is actually very pretty in the spring and fall with all the Crepe Myrtles and Azalea Bushes. I do agree, great cash flows can be made, afterall, one can be "all in" for $35 to 40k and get $795 in rent. Great mgmt is needed and I have always recommend 38127 to be owned locally. The massive losses here typically happen during vacancy as homes are vandalized frequently; my experience comes from mgmt of homes and I owned 1 for a short time. It is simply not the style of investing I am looking for myself or my investors. A local owner simply has more control and can focus more if they only have a few 38127 properties rather then a PM that manages 200 +. For the handful of "C" class I own, I have my guys boarding up the back of the house as the tenant is moving out, we pull the HVAC system and Hot Water tank. You really need to be patient on tenant screening and make sure the right tenant is placed. The massive returns that happen with C class can only happen with the right tenant and we all know the tenant pool in C class, including 38127, is not as good as other areas.
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