All Forum Posts by: Account Closed

Hi @Dominique Jones, 

I'm also considering investing in Memphis as an out of state investment. Where in Memphis are you thinking of buying?

Thanks so much! I'm indeed looking for a SFH as an investment and also finally got a chance to go through every comment and compiled the pros and cons of both markets (below), hopefully to the benefit of others also looking in these markets.

Anyway, below is the compilation of all the comments on this thread:

KANSAS CITY, MO:

- At the time of this post, it appears to be a buyer's market, at least according to zillow.

- Landlord friendly state

- Less expensive and possibly better cash flow

- Lower taxes

- Diversified economy, but lower population

- Slowly growing in population and jobs (though there's no telling when it'll reach its peak)

CHICAGO:

- Huge, so there are likely both great and bad neighborhoods to choose from

- Tenant friendly state

- More expensive and possible appreciation potential (though there appears to be a bit of disagreement on this)

- Possibly a riskier investment

- Apartments are in demand

- At the time of this post, it appears to be a seller's market, at least according to zillow.

- Chicagoland was mentioned as a possible alternative for lower prices and property taxes.

I might also go back and give Memphis, TN one final look as I've been talking to a turnkey provider there, but truth be told the vacancy there seems a bit high, though I realize the rent to value ratio might make up for it. I've also heard from others' experiences that buying there is either a hit or miss. Anyway, thanks again for all the input!

Thanks for the feedback, they seem like a very reputable provider and most people who recommended them seem to be generally happy. I'm currently going over their listings.

I also want to do a bit more research on the location of Memphis, TN before proceeding though, as I've came across mixed information on the city, both positives and negatives. On the one hand, it seems like Memphis has excellent cash flow opportunities. On the other hand, I'm a bit worried about what the numbers would look like once adjusted for vacancy, capex, repairs, etc. The historical vacancy rate data seems to be higher than other cities at the time of this post ( http://www.deptofnumbers.com/rent/tennessee/memphi... )

Thoughts?

Greetings,

I've been exploring a few different hybrid markets for an out of state investment (considering possibly a turnkey property). So far, I'm deciding between Kansas City and Chicago. 

From my research:

- Kansas City have a lower population and lower home prices

- Chicago have a higher population and higher home prices

- Kansas City currently have about a 5.74% vacancy rate but as recently as 7 to 12 years ago, a 10.58-12.40% vacancy rate (source: http://www.deptofnumbers.com/rent/missouri/kansas-... )

- Chicago currently have about a 5.22% vacancy rate, trending downwards from 9.26% in 2005 ( http://www.deptofnumbers.com/rent/illinois/chicago... )

Was wondering if anyone have any strong opinions about investing in one city or the other? As a side note, I've also considered Memphis which appears at the moment to be a stable market with a lower rate of appreciation, but my only concern is that the appreciation may not catch up with inflation and the city appears to have the highest vacancy rate of the three markets described at the time of this post.

All inputs are welcome and greatly appreciated :)

Hope everyone's enjoying the holidays!

A friend recently introduced me to this management group in Memphis called midsouthhomebuyers. I'm currently on their waiting list and figured I'd poke around in the meantime and find people who have done business with this group before who would be willing to share their experiences.

Anyone worked with this company before? If so, could we hop on the phone for a few minutes for a quick chat about your experience?

P.S. If you're in the New York area, I'll treat you to lunch to discuss the numbers.