Steady Income: Most Memphis rents are trending gradually upwards, signaling potential growth in the future.The right Memphis rental can offer passive income after repairs and upgrades if you hire a good property manager.💰 2.

Municipalities have started banning STRs across the Country due to neighbor complaints about tenant turnover, noise, etc.Since you're looking at covering a large area, get good at finding and coordinating service companies to meet the needs of a hospitality business: cleaning, supplying, maintenance, etc.My $0.02 ...

Where I work our inventory is down to 3.6 months of supply (6 would be normal) and buyers are scrambling for homes.

A strong market (demand for apts exceeding supply of B/C) will contract cap rates all things being equal.

There is way more demand than supply during football season, and there is a surprisingly strong demand on off-football weekends due to the amount of travelers that come to Waco to go to the Magnolia Silos and do the whole "Fixer Upper" tour thing.  

(This can be seen from as early as kindergarten, where I took all of the cokes from my parents refrigerator and went door to door in the apartment complex selling them, 1st grade when I sold all of my school supplies in class so that I could buy a toy that I wanted, and even in high school when, due to the fact that I couldn't afford a paintball gun that I really wanted, I build a paintball club signup notebook complete with maps and rank structure and handed it to one of the most popular kids in school to get people to sign up for a small fee, would have worked if my mom hadn't found the notebook at home and got a little suspicious to say the least.)  

Purchase price at 1.2M gives 37,5 per unit.On water, figure out how the units are supplied.

Finally, I've heard it in several podcasts that great contractors are at Home Depot at 6 a.m. getting supplies for their job that day.  

Look for slow, steady, and inexorably rising markets instead.You won't get cash on cash returns in hot markets, and by the time the real estate journalists have identified a market as hot, it's because everyone is taking profits - i.e., the market's at the top.  

Go to local building supply companies or even menards/Home Depot and ask for some recommendations.