All Forum Posts by: James Wachob

Memphis holds a lot of great opportunities for out-of-state investors. I'd love to be your go to person for anything REI related in Memphis, TN.

Hello @Shelby,

Turnkey is always a great option for new and seasoned investors as it requires minimal time and effort, as they come fully renovated and often with residents in place. If you have any questions, please feel free to connect. 

Hello @Artiom Bic,

Absolutely! Section 8 is a fantastic program, and we love working with them. Memphis is a strong market with a growing demand for Section 8 housing. If you have any other questions or need further guidance, feel free to reach out!

Welcome! Memphis holds a lot of hidden opportunities! Please feel free to reach out if you have any questions. 

Hello @Felicia West,

The BP calculator or any algorithmic calculators for that matter aren't going to provide that kind of accuracy that you could hope for, however, if this tool is married with raw data from PMs that are actually managing rental properties in the market that you are investing in, then it could be very useful in making projections, but it's not end all be all. It's imperative that you partner with someone who understands the market and has tons of experience in leasing/selling investment properties. If you'd like to learn about the Memphis market, I'd love to connect and be a source of great information for you.

Hello @Tanner Sortillo,

They could look at picking up two properties instead of just one—maybe a new construction alongside a turnkey property. This way, they can diversify their investments and spread out the risk a bit.

If they’re ready to jump in now, they might find some solid deals before the new year. 

Please feel free to reach out if you have any questions.

Hello @Deal H., 

Congratulations on reaching the point where you’re ready to make your first real estate investment!

When it comes to choosing between a turnkey property and a fixer-upper using the BRRRR strategy, it really depends on various factors, including your market conditions and where you are in your investing journey. Both approaches can be effective, but they come with different sets of considerations.

Turnkey properties are often a safer choice, especially for those just starting out. These properties are usually fully renovated and rented out, providing a more predictable and hands-off investment experience. Given the current market conditions, new construction and turnkey properties tend to offer a more stable and lower-risk entry point into real estate investing. This can be particularly advantageous as you’re learning the ropes and gaining experience.

On the other hand, the BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—can be a great way to build wealth and leverage your investments once you're more comfortable with the process. While it has the potential for higher returns, it also involves more risk and requires a deeper understanding of property management and renovation.

Feel free to reach out if you have any more questions or need further guidance. Best of luck with your investment journey!

Hello @Mirlyne Andre, 

It’s exciting to hear that you and your husband are looking to invest in Memphis. Finding a solid property management team is crucial, especially when managing from out of state.

Having everything you need under one roof can really make a difference. It simplifies the process and helps ensure that every aspect of your investment is handled smoothly. Our goal is to provide you with a cash-flowing, hands-off investment experience, so you can enjoy the benefits of your investment without the hassle of day-to-day management.

I’d be happy to offer advice and answer any questions you might have. 

In Memphis, TN, evaluating a property's potential involves more than just looking at its zip code. To attract long-term, responsible tenants, focus on these key factors:

1. Homeownership vs. Renters:
   • A-Class: Ideally 90% or more homeowners.
   • B-Class: 50% homeowners and 50% renters.
   • C-Class: Predominantly renters.
2. Land Value:
   • In A-Class areas, land should be worth rebuilding and upgrading.
   • In B-Class areas, rebuild as-is if the property were destroyed.
   • In C-Class areas, it might be better to sell the land if it’s not cost-effective to rebuild.
3. Crime Rates:
   • Use resources like Trulia.com to gauge crime levels. A-Class areas should have lower crime rates compared to C-Class.
4. Amenities:
   • A-Class neighborhoods have diverse shopping options and amenities (e.g., Chick-fil-a, Wholefoods).
   • B-Class areas often feature Walmart and Dollar Stores.
   • C-Class neighborhoods usually have fewer amenities and more basic stores.
5. Schools:
   • A-Class areas may have access to better private or charter schools. Check Greatschools.org or Zillow.com for school ratings.

Investment Strategy:

• A-Class Properties: Lower risk, lower return, suitable for long-term investors looking for stable, high-quality tenants.
• C-Class Properties: Higher risk, higher return, appealing to investors with limited capital who can manage more properties for less initial cost.

In summary, choose your investment neighborhood based on your risk tolerance and desired return.

Hello @Daniel Windingstad, Memphis could be a solid option for investors right now. For starters, the rental yields are looking really good. The property prices are quite affordable compared to places like Minneapolis, so you might find that your cash flow improves significantly. Plus, with the steady demand for rentals, you’re looking at potentially lower vacancy rates and consistent rental income.

The job market in Memphis is also pretty strong. Big players like FedEx and St. Jude’s keep the economy humming, which helps support a robust rental market. It’s always nice to see economic stability when you’re investing out of state.

Another cool thing is that some neighborhoods are getting a lot of attention and revitalization. Areas like Midtown and Downtown are buzzing with new developments and amenities, which could be great for property appreciation down the road.

And let’s not forget that Tennessee’s landlord laws are generally more investor-friendly compared to some other states. That could make managing properties a bit easier.

If you’re thinking about branching out into new markets, Memphis might be worth a closer look. Let me know if you want to chat more about this or if you need any help with research or connections in the area!