There seems to be some good value in some, but I'm a little worried about the vacancy rates in those areas.

The numbers (since these matter):List is 75k, numbers are based on selling price of 70kMedian rents for 3br in area: $1200, I'm factoring in $900 due to my cash flow to play it ultra safe because of the small size.Factoring in PM at 10%.Rent - Mortgage&Insurance - Tax - Vacancy (10%) - Repairs (10%) - PM (10%)900 - 310 - 225 - 90 - 90 - 90 = +95$900 is likely very on the safe side so I feel that this is a good deal. 

HI,I'm looking at a deal in Memphis, TN (SFR, 3bd, 2ba, 1335sqft) from a turnkey provider at $77900 and wanted to get the community's feedback.It just got leased with a tenant at $995/month on a 2 year lease.The turnkey provider made it rent-ready (new AC/Furnance, carpet, flooring, etc.) so no fix-up costs.Property taxes = $1490/yearInsurance estimate = $700/yearProperty Management = 9%/monthEstimate vacancy at 8% (1 month)Estimate maintenance at 10% (built in 1985)income:  $995/monthmonthly expenses:$80 = vacancy$124 = prop tax$58 = insurance$82 = prop mgmt.$100 = maintenanceTotal exp = $444/monthNOI = $551With loan, 25% down, fixed 5% at 30 year$322 ; Mortgage payments$229 = net cashflowIt looks like its in a "B" class area. 

With a vacancy rate of 1.7% you are moving to a stellar market to begin your investing career.

 $80000 all cashAll the numbers for vacancy, taxes, and insurance I kept the same except condo has $125 HOA a month to maintain law care and pool maintenance, which I hate.I posted the numbers on the bottom, and I need to know which property would you choose and why?  

The rents are relatively high right now due to a super low vacancy rate, but there is also a wave of building on the horizon that might change that. 

My investor clients often start advertising that rental vacancy as soon as they have a purchase agreement, and often can have a tenant in there a day after closing.Good luck to you!

The first year was negative due to vacancy issues and delayed maintenance catchup but this year is going well.

Unless it's $1200, you won't cover vacancies, repairs, etc. and it will be cash flow negative.

We invest in class A properties, manage from across the country, have vacancy hovering around 0%, invest in appreciating areas so the rent/market price keep up or exceed with inflation maintain our margins and therefore are able to make small margin work.If you want to connect with specific people send them a pm.