All Forum Posts by: James Wachob

Hello @Rafael Ro,

Thanks for sharing your situation—it's really helpful to understand where you're coming from. I can definitely see why you're cautious, especially with the real estate landscape in California and concerns about the economy.

When it comes to Memphis, I think it’s a great option for your out-of-state investment. The city offers affordable property prices, which can provide solid cash flow potential compared to the high prices in California. Homes in the low $100k range are pretty common, and that’s an attractive price point for real estate investors, especially when you’re looking for properties that can break even or provide positive cash flow. With your $50k to invest (and access to more), you could quickly scale your portfolio without stretching yourself too thin financially.

Memphis also has a steady rental market, which is driven by factors like population growth, job opportunities, and a strong economy. The demand for rentals remains strong, and with tenant-occupied properties, the risk of vacancies is relatively low. You’re looking at a market where cash flow is more predictable, and that's something you can count on in the long run.

Another reason Memphis is popular with out-of-state investors is the city's history of solid returns. Many people choose Memphis because the market offers a good balance of cash flow and long-term appreciation. It’s a market with low risk and high potential, which makes it an attractive option for those looking to diversify outside of expensive markets like California.

Regarding turnkey properties, it sounds like you’ve already found a good provider. The advantage of buying through a turnkey company is that they’ve done most of the work for you—finding the property, getting tenants in place, and handling property management. This can be a great option if you don’t have the time or desire to deal with the day-to-day operations of managing a property. Sure, the premium they add (20-30%) is something to consider, but you’re paying for the convenience of having everything handled. Plus, if you want to scale quickly, turnkey providers make it easier to buy multiple properties without worrying about finding each one individually.

If you’re feeling comfortable with taking on a little more responsibility, you could also buy directly through an agent and work with a property manager to handle everything. That route might save you some money, but it would require a bit more of your time to find the right team and manage the process. Luckily, Memphis has a strong network of real estate professionals who are used to working with out-of-state investors, so you'd have plenty of support.

In terms of risk, I think buying in Memphis is a good way to manage that. The more affordable price points, combined with a steady rental market, provide some peace of mind. If you buy multiple properties, you can spread out your risk and avoid putting too much pressure on a single investment. Even with potential vacancies or slow periods, the demand for rentals should keep things stable enough to cover expenses.

Ultimately, I think Memphis is a great place for your real estate investments. You can grow your portfolio, maintain manageable risks, and still see some solid returns. Whether you go with a turnkey provider or build your own team, I’m confident it’s a solid market that will work well for your goals.

Please reach out to me if you'd like to learn more about our city. 

Hello @Dennis Li,

I’m a lifelong Memphian, so I can tell you firsthand that Memphis could be a fantastic choice for your real estate goals. I’ve helped a number of investors, and honestly, the city offers so much potential, especially for out-of-state buyers like yourself.

When it comes to cash flow, Memphis is pretty hard to beat. With properties in the $150K–$250K range, you’re almost guaranteed positive cash flow—more than $200/month per door is definitely achievable. The price-to-rent ratio here is super investor-friendly, so you can get more property for your money compared to other cities like LA or Vegas.

Being a landlord in Memphis is also a breeze. Tennessee is a landlord-friendly state, so the legal side of things is pretty straightforward. There’s no rent control, and eviction laws are reasonable, which makes it easier for out-of-state investors to manage their properties without a lot of red tape.

Memphis has a diverse economy, which is another reason why it’s great for real estate. The city is a major logistics hub (thanks to FedEx), and industries like healthcare and education are growing. The job market is steady, and that keeps rental demand solid. Plus, the city has been investing in infrastructure and revitalizing areas, so there’s definitely growth potential for the future.

I’ve lived here my whole life and helped many investors take advantage of what Memphis has to offer. Whether you're looking for solid cash flow, affordable entry points, or long-term growth, this city checks all the boxes.

If you want to talk specifics or get more info on neighborhoods, I’m happy to help!

Hi @Rafael Ro,

I completely get where you’re coming from, and it sounds like you’ve done a lot of thoughtful research. Memphis can actually be a great choice for real estate investing, especially for someone with your situation.

First off, property prices in Memphis are much more affordable compared to markets like CA, so with $50k, you can actually make a bigger impact. You can potentially purchase multiple properties, which is a huge plus for spreading out risk. Memphis has a relatively low cost of living, and that’s reflected in the property prices. For example, you can buy properties in the low $100k range that are already cash-flow positive or close to break-even with good tenants in place. Plus, the property taxes are typically lower than in California, which can be a huge cost-saver in the long run.

Another benefit is Memphis’s strong rental demand. With a large and diverse population, there’s a steady demand for rental properties, particularly in the affordable price range. With tenants in place and a property management company handling everything, you’re not having to worry about much hands-on work. A good turnkey company can make things smooth for you, even if you’re out of state.

Regarding the price premium from turnkey providers, you’re right in noticing the markup. But when you factor in the convenience of having everything done for you, it’s sometimes worth the extra cost, especially when you don’t have the time or resources to manage it yourself. That said, if you’re open to putting in some work to build your team and find properties yourself, you might be able to save some money and find deals directly. It just depends on how much time you’re willing to commit.

As for your concern about the economy, it’s understandable. Real estate does have risks, but in Memphis, you’re dealing with more affordable properties, which can help you weather potential downturns. A smaller mortgage means lower overhead, which is crucial if you’re worried about vacancies. Plus, with the relatively stable rental market in Memphis, it’s less likely you’ll face extended vacancies compared to more volatile areas.

Overall, option 2 (buying a few out-of-state properties) seems like a solid choice. It allows you to spread your risk and grow your portfolio without overextending yourself. Memphis offers solid rental returns with less of the volatility you might face in California or other high-priced areas.

Hope that helps! Let me know if you have more questions or want to dive deeper into any part of this.

Cheers!

Welcome to BP! It sounds like you’ve got a solid plan for getting into real estate investing. Based on what you’re looking for, I’d definitely recommend taking a closer look at Memphis, TN.

Memphis offers a lot of the things you’re after. First off, property prices are pretty affordable, so you can easily find places under $250K, and with the right property, you can definitely achieve positive cash flow—more than $200 per door is very possible here. It’s a great market for cash flow, especially compared to pricier areas like Tucson or Tempe.

Tennessee is also a landlord-friendly state, so the process of managing properties is a bit smoother and more predictable, which is always a plus for long-term rental investors. The economy in Memphis is diverse, with strong industries like logistics (FedEx is based there), healthcare, and manufacturing, so it’s not too reliant on one sector. That makes the economy pretty stable and less fragile, which is exactly what you want for long-term growth.

Let me know if you want more info on Memphis or any help diving deeper into the market there!

Hello @Amanda Skipper,

While there's no better way to truly get a feel for a market than by being on the ground and exploring the neighborhoods firsthand, I want to assure you that investing remotely is absolutely doable—and many successful investors do just that.

In fact, I know several investors who have built substantial portfolios in Memphis, and they’ve never physically visited the city, and they've done so successfully by leveraging local expertise, market data, and a solid support network. Technology today allows us to access detailed information and resources remotely, which makes it possible to make well-informed decisions even from a distance.

Memphis is a city with a lot of hidden gems and under-the-radar opportunities that many investors miss out on simply because they’re not familiar with the local landscape. Whether you’re interested in emerging areas, cash flow opportunities, or long-term growth potential, we can work together to identify those neighborhoods that best align with your investment goals.

I’d be more than happy to assist you in understanding the market dynamics and helping you make strategic decisions that align with your objectives.

Hello @Antonio,

Memphis offers strong cash flow potential, with affordable property prices and a solid rental market. The city has been growing steadily, and its landlord-friendly laws make it a great spot for real estate investors. You can typically find properties in the $100K range that can hit your profit targets, and the market tends to offer strong returns, especially for turnkey homes.

If you're open to expanding your search, feel free to reach out. 

Welcome @Renee Coss,

I hear stories similar to yours all the time. Many investors want to invest in real estate, but find it too expensive where they live, so they turn to our market in Memphis, TN (Workforce City), attracted by the low barrier to entry and cash flow potential. There are certainly many hidden opportunities here, and having boots on the ground along with a great property manager is essential.

For your first property, I recommend looking for something that will provide consistent cash flow and require low maintenance for at least the next 5-10 years. New construction or turnkey properties could be viable options for you. Please feel free to reach out if you’d like to learn more about the Memphis, TN market.

Welcome! 

Great to hear about your journey back into real estate! The markets you’re targeting sound promising.

If you’re open to it, consider Memphis. While it’s not typically known for multi-family deals, that could be a plus since there’s less competition. You might uncover some hidden gems with solid cash flow potential. Plus, the city’s growth in logistics is a good sign for rental demand.

Excited to see where your journey takes you!

Hello @Minnina, before diving into rental property investing, it's important to educate yourself and gain a solid understanding of the market and property management. Make sure to conduct thorough due diligence on the areas you're interested in, including neighborhood dynamics and the condition of the properties you're considering. Partnering with a strong team—such as a knowledgeable realtor, property manager, and reliable contractors—will also be key to your success. Starting with a property that is either new construction or turnkey that offers positive cash flow is a smart strategy.

Feel free to reach out if you have more questions!

Welcome @Omer Peled, Memphis TN holds a lot of GREAT opportunities! Please feel free to reach out if you have any questions.