All Forum Posts by: Radhika S.

Hi @Radhika S.,

I totally get where you're coming from—diving into real estate can be a bit overwhelming, especially with kids and everything else on your plate. But it’s awesome that you’ve got a plan and are ready to make it happen!

I’ve lived in Memphis my whole life, and I’ve been helping investors for decades, so I can tell you that this market is one of the best for out-of-state investors. The prices here are affordable, which means your $50K can go a lot further than it would in places like California, and you can still get solid cash flow from rental properties. The big thing about Memphis is that it’s stable. There’s always demand for rental properties, and with the landlord-friendly laws, you don’t have to deal with all the red tape you might find in other markets. That’s huge when you’re investing from out of state, because it means less hassle and more reliable returns.

Turnkey properties are super popular here because they’re ready to go right away. No worrying about renovations or repairs, so you can start making money quickly. New construction is also a solid option because everything’s brand new, and you’re less likely to run into issues with maintenance early on.

As for research, I'd focus on the local economy and rental demand. Memphis has a steady, growing economy, and there's always demand for rentals, which makes it a great long-term bet. Also, make sure you're talking to your CPA and attorney about taxes, investment structures (LLC, etc.), and local landlord-tenant laws. Those are the key things you'll want to get squared away.

You’re definitely on the right track! Just take it one step at a time, and don’t hesitate to reach out if you need more insight into the Memphis market. 

Radhika.  Congratulations on wanting to start out in RE investing.  Rental property investing is a great way to begin a a real estate investor, but can have lots of pitfalls.  However, no one will watch out for your investment like you will so choosing, or even having a property manager is a major decision.  I have had varied experiences with property managers.  Having owned many residential and commercial properties I can tell you that having a rental property is like raising kids.  No one is going to do the job that you the parent will do.  Just like raising children, rental properties do best when watched closely.  Drive bys, Stop ins can tell you what is really going on in your property and staying close to home is usually best.  Have a good lease with "teeth" - late fees for late rent, occupancy rules, pet rules and etc. - and do not violate your own lease by being too easy, or very quickly you will not have any lease at all and your tenant(s) will do whatever they want at your expense.  Rental property management is business, not personal so always keep a business relationship with your tenant(s) - no friends or family wanted.  Take care of any reasonable property related issues quickly and expect your tenant(s) to take care of their responsibilities quickly also.  Remember the only thing that the landlord gets from rental property is RENT, so make sure that you get it!!  Also, some places like CA and MD have very tenant "friendly" laws (against the landlord in some cases) so make sure that you know the laws and if possible, have an attorney or service to collect overdue rent and/or eviction as needed.  Be flexible to your tenant's needs, but do not make the mistake of buying their BS.  Good luck.  

That is super strange on the xls file! I will DM you the "Where to Start" spreadsheet! you can open it on excel, numbers, or google spreadsheets.

@Radhika S.

you are right to be cautious.  'cash flow' has been way, way oversold.  it typically takes 5-10-15 years to stabilize a property, get a good tenant in, and actually generate net cash flow, especially with prices and interest rates so high.

if you're in it for the long term, and willing to weather some early storms, great.  but if you want immediate cash flow - you're better off in a savings account.  

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Ok kind of curious how Owensboro made your list. Out of the areas in KY that is not one I would have thought would be on most out of state investors radars.