Memphis is one of the most undervalued markets in the U.S. With over 45% of the population as renters, the city has become an attractive destination for investors seeking stable appreciation with positive cash flow. With the tremendous tax advantages associated with real estate, the opportunity Memphis has to offer is second to none. The main difference between the Memphis real estate market and other cities across the country is that here in Memphis you can buy a property in the $50,000 range that will rent for $900 per month which provides excellent ROI, especially when leverage is used.
The real estate investment market in Memphis provides a tremendous opportunity for those looking to acquire properties that cashflow from day one, with tenants who live in a stable economy with good employment.
The following are from the Urban Land Institute’s presentation of Emerging Trends for Real Estate in 2009 here in Memphis, which pointed out several facts MemphisInvestor has known about the residential investment market in Memphis and real estate investors for several years.
1. Memphis continues on a steady growth cycle in job creation, new development and property value. The metropolitan area does not take wild rises or dips in these areas – just fairly steady growth and slight dips.
2. Memphis is home to some of the country’s great corporations including, Federal Express, Autozone, Medtronic and International Paper. Its central location also makes Memphis a great business hub for many small to medium sized companies. Its easy access to rail lines, ports and world class airport make it the distribution capital of the country which means a continued supply of quality jobs.
3. Memphis ranks as one of the top “affordable” cities to live in the country with the suburb of Bartlett, TN. recently being ranked as one of the top 100 suburbs in America. The cost of housing ranks among the most affordable in the nation and well below national average.
4. Vacancy rates continue to stay below the national average, while the percentage of Memphians renting their dwelling continues to eclipse the national average by almost 90%. With over 45% of the city’s population renting, the opportunity to keep an investment property occupied with a quality tenant remains high.
The single biggest piece of information to come from the ULI’s presentation pertained to the way investors conduct their business in today’s market. It was clear that they wanted investors to know it was time to get back to basics and do business with proven companies.Having a strong team on the ground in Memphis with proven companies who have a history of success is essential to the success of those who know the value of investing remotely.
Remember: “Live where you want,, but invest where is makes sense!”