Looking to Invest in Memphis Real Estate (Midtown: real estate market, renter)

[ras100]

I am looking to invest in real estate in Memphis and was wondering if people could share their opinions on what neighborhoods would be good to invest in and which areas to avoid. I'm looking for decent neighborhoods with lower housing prices. Thanks for your help!

[SamHanks]

You need to specify if you are planning on renting, or flipping the investment properties. If you are planning on flipping(fixing up, and reselling) then stay away from rental neighborhoods. If you are planning on building a rental portfolio, think about who your potential renter would be, and what neighborhood would be attractive to that person. Look for neighborhoods that are trending up and not down. For example, downtown has experienced tremendous revitalization in recent years. Think about neighborhoods near downtown, Uptown, Midtown, near the Sears Tower area, Whitehaven, Near Cooper-Young. Areas near desirable Optional Schools, and near the University of Memphis- such as the East side of Orange Mound. Another area to watch is Binghampton because of its proximity to the Broad Street Revitalization. The Raleigh-Frayser area is interesting, too.

[Anongmous]

Opinion only :

At this point, there are far too many other desirable cities in which to invest, and live. I too invest in RE...currently looking more at multi's, not so much SF's...unless it's in a very depressed market like some parts of FL, and NV where people are knocking each other down to 'rent' as avoiding purchasing...rents are creeping up, and supply is so of tight (which means you can actually rent your inventory at a decent price)

We've bought nice homes..newer homes...several with pools, 3 car garages etc...cheap. This week I going to look at a nice little 4 plex (no junk) about 15 min from the beach.

Depending on your holiding period, I still think buying rental property in a declining population of a town like Memphis, TN is not competitive for the 'rental future'.

Look to growing communities, not shrinking ones. Believe it or not, people are still moving to places like Florida...including baby boomers, young folks, and retirees, who are looking to rent instead of buying. the same thing can be said for a few cities in SC, and even coastal AL.

Memphis has some real tough social issues as well....lots of sec 8, poverty, racism, crime issues in rentals, etc etc etc........all of which you can do without..at least on Memphis' scale.

[InvestinginMemphis]

I would tell you to get the advice of someone in the market who can help you get the "facts" about a city and not listen to someone intent on selling you on another part of the country. There are several very good neighborhoods in Memphis and some that you do not want to own long-term buy and hold rental property.

I invest in about 45% of the city today and I could nto disagree more with some of the areas listed here earlier. I stay strictly with the SFH's in or near the suburbs of Memphis and properties that will rent between $700 on the very low end and $1,100 on the high end. I stay away from Downtown and areas near the downtown including Frayser, Cooper-Young and University of Memphis area. I invest where the heaviest portions of the population live.

The population of Memphis has also been growing and continues to grow this year. With over 40% of the population already renting and the economy built on stable industries which run in any market such as supply chain industries like transportation, distribution and warehousing, the Memphis market is a perfect market for long-term buy & hold success.

I urge you to do your research and consult those that are already investing before listening to the negative rant of someone who is not investing. In my opinion.

[Anongmous]

Ras100



In my opinion, I think there are better markets in which to invest..than solely Memphis, TN.

The US is a very diverse market, and all real estate markets are 'local'. Do your own homework, but you asked an opinion, and I provided one based on current experience, and certainly not just in little ole Memphis, TN.

If you think people look at Memphis as a huge destination of choice in the south or the rest of the nation, you have not done enough comparative research. People have been moving out of Memphis for years. People have been moving out of Detroit for years. I would not look to invest my money or my family's assets in Detroit either...perhaps the suburbs surrounding Detroit, but not so much either. Why ? it's a thing called 'future desirability' and 'future marketability'.

Sorry, I have the solid opinion that there are, and will be more marketable areas in which to invest in the future, than Memphis (or Detroit, or Montgomery AL or Stockton CA).

It's unfortunate that other posters seek to dicredit another poster's opinion about your own question...but that's Memphis TN.

I have no axe whether you invest in Memphis TN, or Asheville NC, or Marina Del Rey. I'm not selling real estate, and have no vested interest in promoting one area over another. That's stupid for anyone to suggest that. It's equally stupid for one poster to suggest that he or she knows anything about the investing habits, choices, or realities of another poster he or she knows nothing about whatsoever.

Good luck in your own choices and research..whether YOU choose to invest hard earned dollars in Memphis, TN or the near north of Chicago...my solid advice is of course, not to wear blinders geographically.

All cities change- all regions change- some are on the upswing, some are or will be on the decline...for a variety of reasons. We look at the longer term, the longer profile, the likely demographics in the near future, the amenities, the governments, the community relations, race relations, the infrastructure, the education system, the weather, and the business climate. There is nothing inappropriate with stating the reality and the obvious : There are much better places to invest soley than Memphis, TN. If you have not determined that investing solely in places like Memphis or Detroit can be more risky to capital than a few other US cities, then please do a bit more research for yourself, and never be held hostage to any one or two opinions made on the internet. That's stupid too.

[ras100]

Thanks, everyone, for your opinions. I'm sorry it took me so long to respond (I thought I would get an email telling me when people responded). I should have specified what we do. We buy properties for dirt cheap and then resell them with owner financing to homeowners or investors who then do the repair work themselves. We don't actually make the repairs, but we do need to buy in places that people want to live (homeowners or renters). We are looking all over the country, so I appreciate your comments on all areas. Thanks again!