Want to invest in Memphis, but have reservations

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Want to invest in Memphis, but have reservations

Albert L.
Investor · Temple City, CA · Member since 2016 · 47 posts · 11 votes

In doing my research, I'm so-so on the Memphis market, but like some of the turnkey providers there with a long track record of credibility, trustworthiness and not disappointing investors, which is #1 in my mind.

Some of the concerns I've read, but I understand may be skewed as I haven't read as much regarding other markets are:

1 - Difficulty finding tenants without financial judgement against them from PMs? 2 - Common for no appliances supplied due to theft, even in higher end areas. Good for landlord as less things to fix, but does it say something about the market?

I understand you can't generalize a market, but I'd still like to gather some feedback. If I were to invest, I'd like to focus more on B+ areas, 120-160k, in hopes of a more hassle free tenant. Would this be a correct assumption?

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Michelle LaRue
Roswell, GA · Member since 2017 · 39 posts · 10 votes
9y

@Albert L. Just curious as to what you have decided about the Memphis market? I am new and looking to invest in Memphis as I grew up there. I still have family there and the prices aren't outrageous.  

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    9y
    You're mostly correct, if anything I'd say your range is a bit high
    1Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    9y

    Albert, we don't normally provide appliances Bc most tenants in the price ranges we sell already have them in many cases, it's not Bc they get stolen.  The price range youbststed for our market would surely be an A range. 

    Good luck 

    Curt Davis - KAIZEN Realty538 Reviews
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    2Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Albert L.:

    In doing my research, I'm so-so on the Memphis market, but like some of the turnkey providers there with a long track record of credibility, trustworthiness and not disappointing investors, which is #1 in my mind.

    Some of the concerns I've read, but I understand may be skewed as I haven't read as much regarding other markets are:

    1 - Difficulty finding tenants without financial judgement against them from PMs?

    2 - Common for no appliances supplied due to theft, even in higher end areas. Good for landlord as less things to fix, but does it say something about the market?

    I understand you can't generalize a market, but I'd still like to gather some feedback. If I were to invest, I'd like to focus more on B+ areas, 120-160k, in hopes of a more hassle free tenant. Would this be a correct assumption?

    Isn't that market becoming a bit over saturated with so many investors? I could be wrong, just rumors maybe. Good luck if it's not!

    0Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    @Albert L. I would say the market has to many "average rental homes" supplied by local landlords who do not want to fix up their homes, but most of these are paid for, so taking less rent is fine with them. There is also a lot of out of state landlords still subscribing to the all homes are created equal and putting a For Rent sign in the yard and the tenants will come. The market is in need of landlords who truly get why better homes will cash flow better and Property Managers who truly get the business.  Tenants are fed up with the Property Mgmt Vs. Me mentality. It takes some thick skin and fist biting, but treating tenants with respect, no matter how nasty they get, having the "customer is right" (within reason of course) and  excellent customer service PM companies are outnumbered by the PM companies that want to fight with tenants. Tenants will find the better companies and stick it out with them!

    901-848-9028
    3Reply
  • Jennifer Slaughter
    Real Estate Agent · Fort Collins, CO · Member since 2016 · 246 posts · 142 votes
    9y

    Hey @Albert L., I understand your hesitation and I remember feeling that way before we invested OOS in Memphis.  I think I tend to be more paranoid so being diligent about due diligence gave me peace as we were doing our first deal.  From what I understand, it takes 30-45 days to place a qualified tenant and I wouldn't compromise on a PM company that has less than stringent standards for a tenant because a troublesome tenant will eat away your cash flow.  If you are buying TK, the provider can begin marketing the property to tenants during the renovation period which will keep your vacancy rate low.

    0Reply
  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y
    Albert Leung check on the website RoofStock.com for rental properties in Memphis They already are tenant occupied, lease in place, most updates have already been done, inspected and financing can be provided too
    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
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    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Albert L.:

    In doing my research, I'm so-so on the Memphis market, but like some of the turnkey providers there with a long track record of credibility, trustworthiness and not disappointing investors, which is #1 in my mind.

    Some of the concerns I've read, but I understand may be skewed as I haven't read as much regarding other markets are:

    1 - Difficulty finding tenants without financial judgement against them from PMs?

    2 - Common for no appliances supplied due to theft, even in higher end areas. Good for landlord as less things to fix, but does it say something about the market?

    I understand you can't generalize a market, but I'd still like to gather some feedback. If I were to invest, I'd like to focus more on B+ areas, 120-160k, in hopes of a more hassle free tenant. Would this be a correct assumption?

     Not supplying appliances is common in many markets. Here in Cleveland we do not supply them for properties in the 1-4 unit range. They are a poor investment. Adds additional cost to the landlord with minimal increase in rental income. 

    1Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 897 votes
    9y

    @Albert L. The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.

    By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

    0Reply
  • Michelle LaRue
    Roswell, GA · Member since 2017 · 39 posts · 10 votes
    9y

    @Albert L. Just curious as to what you have decided about the Memphis market? I am new and looking to invest in Memphis as I grew up there. I still have family there and the prices aren't outrageous.  

    4Reply
  • Albert L.
    OP
    Investor · Temple City, CA · Member since 2016 · 47 posts · 11 votes
    9y

    I'm still open to it, but would probably want to stick to the better areas. 

    0Reply
  • Michelle LaRue
    Roswell, GA · Member since 2017 · 39 posts · 10 votes
    9y

    Thanks @Albert L. Best of luck!

    0Reply
  • Tyler Ferguson
    Calgary, Alberta · Member since 2017 · 2 posts · 1 vote
    9y
    Originally posted by @Michelle LaRue:

    Thanks @Albert L. Best of luck!

     Hey Michelle, 

    I am a Canadian investor and like some areas of Georgia and am looking into Memphis as well. Would you be interested in connecting? 

    1Reply
  • Elizabeth Wilson
    Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    @Albert L. -  come visit!  Seriously. And I'd say that about any market you are interested in investing.  I'm biased but Memphis continues to be great for us. The question for any market is buying right and having good PM.  We love our PM team! (Thank you Crestcore @Douglas Skipworth).  We are local investors and would be happy to talk with you about the Memphis market.

    Happy investing!

    2Reply
  • Michelle LaRue
    Roswell, GA · Member since 2017 · 39 posts · 10 votes
    9y

    @Tyler Ferguson I will keep you in mind and reach out should I find any amazing deals. Feel free to contact me to chat. 

    0Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 897 votes
    9y

    @Albert L. you should connect with @Mark Hart he is working with  investors in Memphis. 

    0Reply
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