Investment (Memphis, Germantown, Midtown: section 8, real estate, to rent)

[Scout12345]

I'm looking at an investment property in Hickory Hill, south of E Shelby Drive. Anyone have thoughts on the area and where it's headed?

Thanks.

[eastmemphisguy]

Hickory Hill was a middle class suburban neighborhood until about 20 years. It's still not the absolute worst part of town, but it's not nice like it used to be. It's not getting any nicer either. I'm sure there are people who do well investing in less than ideal neighborhoods though, so that doesn't mean it's a bad idea. I really don't know a lot about real estate investment, so I don't have any tips for you other than to know what you're getting yourself into.

[Darkseid]

What eastmemphisguy says is correct (They joking call that area "Hickory Hood" now). It depends on what you are trying to do. I assume that you are speaking of a residential property. If you are looking to fix it up and flip it, it could be on the market quite a while and you may even lose money. However, if you are looking to rent it out and/or put it on Section 8, it could be a pretty good deal depending on how much you pay for it.

FYI, I own several properties in the city (though none in that area)

[Scout12345]

Thanks guys.

Is it your view that Cordova is following in the footsteps of Hickory Hill, or on a better trajectory?

[eastmemphisguy]

Originally Posted by Scout12345

Thanks guys.

Is it your view that Cordova is following in the footsteps of Hickory Hill, or on a better trajectory?

The south side of Cordova is going to remain nice. Everything along Walnut Grove always does. Once, you cross 40, not so much. I don't have high expectations for the Wolfchase area. Take a drive down Appling, the difference is immense between the two sides of the interstate.

[Darkseid]

Originally Posted by Scout12345

Thanks guys.

Is it your view that Cordova is following in the footsteps of Hickory Hill, or on a better trajectory?

The short answer is that Cordova is on a better trajectory. Hickory Hill has a very complicated history though. Back in the late 90s and early 00s a couple of things were happening in Memphis. The city was aggressively expanding east and fought (and won) an initiative for many areas to become towns of their own. Hickory Hill was one of those areas that wanted to become its own town. Cordova was another. I think there may have been like 4 proposed towns in all. Long story short, the city won and the areas were annexed into the city limits. That wasn't so bad for Cordova, but was terrible for Hickory Hill as many whites and more affluent blacks packed up and moved further east outside of the city limits or even to Mississippi.

The other thing that was happening was that money was being spent to revive downtown as well as to uproot and place residents of many housing projects (many of which were downtown) into other areas of town after they were demolished. Hickory Hill, being in the city limits now, became the area to which many of these residents were placed. The area went into free-fall at this point (see the comments above on block busting etc). When I think back to what Hickory Hill was in the early to mid 90s and earlier, I am amazed at what it has become. All of the shopping, restaurants and businesses that were there, packed up and left. Meanwhile, Memphis and Shelby County building code enforcement continued its policy emphasizing sprawl and continued to approve more and more subdivisions and developments further and further east.

The reason I think Cordova will be spared is because of its proximity to Germantown, which unlike Hickory Hill, was made into its own town long ago and can protect its interests locally - otherwise it too would be part of the City of Memphis. The people in Cordova also demanded better services and police protection. Then on top of that, code enforcement has finally started to slow down on sprawl. Besides, there is no more money to expand sewer, water and other utilities to further and further regions. Mayor Wharton has put more emphasis on cleaning up the blight that was left behind in wake of all the flight. So there will not be another round of mass flight from Cordova. There's no place else to go - not en mass.

Hickory Hills' interests were left up to the fate of people all the way downtown. It would have been better for both the city and the areas had they been allowed to form their own towns and take their own local fates into their own local hands. It would have also forced the City of Memphis into more smart growth policies and to take care of the areas already under its control instead of constantly seeking new areas to annex to maintain its growth.

If you want my opinion, look for investment properties in the downtown area - specifically in close proximity to the Medical Center. That is where I am investing. I own several parcels in Memphis and none in Cordova or Hickory Hills

[jabogitlu]

I have to agree with Darkseid. If your investment can take on a 10+ year window (especially 20+ years), invest in the Poplar/Madison/Union corridors in downtown/Midtown.