Memphis market and deal analysis Covington TN

[Tim Bergstrom]

Hey BP,

I specifically have a question for those who know and understand the market in Memphis, TN and the surrounding areas. Rather, I would love to get a second (or third or multiple) opinion(s) on a deal I'm looking in to.

I'm considering making an offer on a property in Covington, TN, which I understand to be about a 50-60 min drive from downtown Memphis. It's looking like the numbers are making sense and I could Flip or BRRRR it.

I guess I should say that I'm located in Nashville, hence my reason for not knowing detailed specifics on the market and not being able to easily pop over and go see for myself. 

The property is on the south edge of town (a little south of James Ave and a few streets over from 51), but still very accessible. My realtor I'm working says that ARV's in that area for a 3/2 1500sf-ish property would be safe to bet on around $100k. And that rents should be in the $1000/month range. And for this particular property we're guestimating around a $30k rehab.

So my question is do these numbers on ARV and rents sound about right to y'all that also know the area? I trust my agent, but just like going to the doctor I find value in getting a second opinion. Haha.

If so, would a Flip make more sense or BRRRRing it make more sense (perhaps that's just a matter of what I'm wanting to do). If you have thoughts on that I'd also be open to hearing whatever you have to say!

Thanks in advance for your advice! If I can return the favor in some way I'd be happy to do so.

-Tim