Investing in Memphis real estate has never been very fashionable. There are no beaches, mountains, or other geological factors that make it attractive for vacationing or massive amounts of appreciation. But Memphis has one thing that many cities in the US do not have right now. That is CASH FLOW. Memphis has a large percentage of the population renting because of many socio economic factors including high bankruptcy and foreclosure rates. The rental market here is very strong. Apartment occupancy is running 92% across the city and over 42% of our population rents, making it one of the most choice places for owning real estate investment property.
Memphis has long had a blue collar work force. Home to FedEx, Memphis is truly "America's Distribution Center". In addition to the 30,000 people that work for FedEx, Memphis is home to a significant number of trucking companies, a major railroad center, and being located on the Mississippi river, a strategic river port. Additionally Memphis lies at the intersection of interstate 55 and I-40, which is a national crossroads. Memphis' economy is growing, slowly, but it is growing. Many cities across the nation that boast positive cash flow lie in areas of the rust belt where populations are declining and factories are closing. Memphis is quite the opposite.
However because our growth is slow and calculated, we have not had the big run up in real estate prices that many cities across the US did. Many coastal markets prices have made positive cash flow real estate investing impossible. Prices have remained stable. Although our retail market is slow, the real estate investment market is hot. Often many people are bidding on the same foreclosures that are in strong rental neighborhoods. Prices are frequently bid up and houses are rented quickly. Thus we invest here. Homes in good neighborhoods rent in 0-45 days in most cases, and rents are high relative to the price of the home.
For example you can purchase an investment property here for $29,500 that needs $12,000 in work. In the end you acquire the property at and after repairs and costs, you are in the deal around $43,000. The home appraises for $62,000 and rents for $700. This is very real situation that happened to an investor in October of 2007 from Colorado.
If you think these numbers add up, then buying Memphis investment property might be for you!