All Forum Posts by: Jordan Ray

Memphis has plenty of opportunities. I recommend Jordan Ray at EXP Realty for a good Agent who knows the Memphis investor market well. 

I’m here to make a bold claim: Birmingham, Alabama, is a better market for out-of-state investing than any other Midwest market. Yes, you read that right. And I’m curious to hear your thoughts—whether you agree, disagree, or fall somewhere in between.

Here’s why I think Birmingham deserves more attention, especially for out-of-state investors looking to build a steady, cash-flowing portfolio. My argument boils down to five key points:

1) Population Trends Favor the South

Let’s face it—people are leaving the cold behind.

The U.S. Census Bureau shows clear population trends favoring warmer climates. Alabama, for example, grew its population by 4.2% from 2010 to 2020, and Birmingham has directly benefited from this trend. Meanwhile, key Midwest states like Illinois and Michigan saw population declines during the same period, with Illinois losing 0.6% and Michigan remaining stagnant.

2) It Flies Under the Radar

Markets like Detroit, Cleveland, and St. Louis dominate the Midwest investing conversation. But what about Birmingham?

Less attention means less competition, which translates to more deals, fewer bidding wars, and greater opportunities for investors willing to explore this under appreciated market.

3) Exciting Real Estate Developments Signal Growth

Birmingham is transforming before our eyes with projects like:

• The Star at Uptown: Revitalizing the old Carraway Hospital into a mixed-use district. 

• The Silos at Parkside: Turning industrial spaces into vibrant communities.

These projects (and more) demonstrate a city investing in its future. Even the permitting process has become more investor-friendly, further encouraging development.

4) It’s in the Path of Progression

Birmingham is strategically located just three hours from booming cities like Atlanta and Nashville—both of which experienced explosive growth over the last two decades. As these cities become overcrowded and overpriced, Birmingham naturally benefits as a more affordable alternative for transplants.

5) It’s Stable and Consistent

Birmingham may not have the meteoric rises of markets like Austin or Orlando, but it doesn’t have their wild swings either. Its appreciation over the past 50 years has been steady and predictable, which is exactly what cash-flow-focused investors should want.

Birmingham doesn’t get the respect it deserves from out-of-state investors, but it should. The data supports it, the developments confirm it, and the trends validate it.

Of course, you can make money in any market—but for a steady, cash-flowing portfolio with growth potential, Birmingham checks all the boxes.

I’d love to hear your thoughts. Am I overlooking something, or does Birmingham deserve a bigger spotlight in the investing world? 

Hi, 

I have two houses that I purchased from Memphis Investment Properties (M.I.P.) who still manage them. Property one is a 3 bdrm 2 bath with a garage that rents for $1,350 and property two is a 3 bdrm 1 bath, driveway parking, that rents for $950.

Before I bought the houses, M.I.P., provided a proforma on each property. They allowed in the proforma for a 3% maintenance. The proforma's would have been accurate but, what they didn't allow for, is the turnover cost between renters that left excessive damage. Also, the vacancy rate was understated.  

My first house had a tenant in it when I bought the house and they just up and left and left the house in rough shape. Then my second house which was freshly turned had a tenant that up and left after a couple of months and caused excessive damage. 

On the first property, we sued and won a judgement of over $6,000 but I have not seen a penny and it's been over 18 months since the judgement. We sued on the second home but don't have a ruling yet. Now my first property currently has a tenant that is not paying rent, so we started the eviction process. I expect that I may have excessive damage on this home as well. 

Out of 4 tenants, only one has abided by the lease. 

Am I just unlucky or is this  what I can expect in this market? 

I was really excited to be a real estate investor but having 3 out of 4 tenants break leases and cause excessive property damage as well as unexpected turnover cost from excessive damage, is making want to get out.

Thank you for your any input you would like to share. 

Damon

I’ve found a “deal” but I’m having trouble understanding if this is a good fit for me. I’d love to hear some perspectives from more experienced and local investors on what you think about the numbers below:

$130k for 3bd 1ba for a single family house:
- Reno Budget: 42k
- Projected Rent: $1400

Pros:

1. 1. Currently tenanted 
2. 2. Appraisal came ~10 higher than PP
3. 3. Potential for ~7.5% cap rate

Cons:

1. 1. Long distance investment (will be using property manager)
2. 2. The house needs heavy renovations
3. 3. Located in HornLake, MS – I'm a bit concerned about declining population and overall economic drivers

@Jordan Ray thanks! I am excited to be with this new team and pumped to see where 2025 takes us!

Hello,

Has anyone invested with Memphis cashflow? Their model looks great. Appreciate if anyone has first hand insight.

Hi BP! :)

General question here: I invest in long term rentals in Memphis, but I live out-of-state in NYC, so I was wondering if anyone had any general advice about starting an LLC in my situation.

Would you form the LLC in Tennessee or would you recommend forming the LLC elsewhere? Any advice would be great, thank you in advance! :)

Hello! My name is Jared Smith and I have been involved in various real estate investments since 2006 when we did our first flip in the PNW all on a CC! (not recommended). In 2017 we started our journey with long-term buy-and-hold investment properties in the Memphis, TN area after selling a property that we were losing money on every month in NOVA that we purchased as a primary residence in Jan 2007 (talk about all-time bad timing) and then had to move with the Navy in 2009 (2nd all-time worst timing). We have done all kinds of deals on our own ranging from buying, selling, flips, BRRRRs, and now are also invested in commercial properties along with our SFR portfolio.

After retiring from the Navy last summer (2023) and working in a corporate office for 18 months, I have made the leap to working for REI Nation, the country's premier turnkey investment property company. The Clothier family is a real force and I am all in on my new journey.

I'll see you all in the forums!

Hello all,

Looking at a 3 bedroom 2 bath built 1970 in a fair part of memphis.

Price 39,000
Repairs 10,000
ARV 77,000
Rents in the area 925

Would you buy and hold?

Thanks for your thoughts!!

Hello BP community! I am looking to get into out of state investing. I live in San Diego, CA and as you all know, it’s a very high entry point here so looking to get into a long term rental elsewhere. I am looking to use all cash, under 200k, preferably under 180k for a single family or a duplex if viable with my budget. I am a small business owner, business is not doing too well right now so that’s why I’m looking at an all cash buy, so I can get a nice cash flow to supplement. Would like to be in a city where I could get potentially $1,500 to 2k in rent. The list of cities that I’ve come up with so far by my own rookie research is the following, but always open to other suggestions from members that have experience else where. 
Waco, Dallas, El Paso, TX

Indianapolis, IN

Pittsburg, PA

Looking to connect with locals who can help build a boots on the ground team as well. Thank you guys so much for any help here.