Memphis has been named one of the Best Markets for Real Estate Investments in 2019 by Forbes, making it an excellent place to pick up those key real estate investments. Whether you're interested in fixing and flipping houses or considering a long-term investment, if you're in the Memphis area, now is the time to get started!
Rental Properties are in Demand
The economy is doing well, but not so well that people are looking for opportunities to jump into home ownership. That means a great opportunity for landlords looking for renters in the median price bracket. By picking up rental properties, you can add to your investment portfolio and see regular income through the next several years. When you look for rental properties, look for properties that:
Fit the neighborhood
If you're in a great school district, look for properties that will allow for kids. Investing in properties in a senior-heavy community? Look for properties that are smaller and easy to keep up with, and consider including outdoor upkeep as part of the rent.
Require maintenance you know how to handle
If you're planning to DIY any upgrades to the home, make sure you don't jump in with a project over your head! On the other hand, if you're thinking about hiring contractors to handle your upgrades and maintenance, make sure you have reasonably-priced contacts who will provide you with honest estimates and quality work.
You can afford
Sure, renters often help pay the mortgage on your new investment property, but you have to assume that there will be months when you need to pay the mortgage on your own. Look for properties that fit your budget, rather than jumping in and investing over your head.
Fall somewhere near the median rent price range
You don't want to choose high-dollar properties that are going to have potential renters turning away before they come in. Instead, look for rental properties that are no higher than 25% over the median price.
Aim for Stability
Many investors want to jump in and make plenty of money fast. Forbes writer Ingo Winzer, however, notes that stability is just as important as a get-rich-quick investment. When you invest in real estate, you're often unable to make a fast turnaround. Instead, you need a market that will remain stable over time.
Memphis's rental market looks like a great place to start investing, not just because there's reasonable availability of decent rental properties, but because the market has remained relatively stable for several years and looks set to continue with that stability. If you're considering investing in rental properties, you want a stable market that:
Has plenty of appeal for long-term renters.
You want renters who are going to stick with your property, not necessarily renters who will be in and out all the time.
Offers the opportunity to find new renters
Choose an area where people are coming in, not an area that is slowly dying. Memphis is the perfect market for this opportunity, as the area is relatively stable and isn't seeing a sudden surge in people leaving.
Doesn't depend on one specific industry
Winzer notes that Orlando, for example, depends heavily on tourism--and if that decreases, then jobs go down and people start leaving the area. Memphis, on the other hand, offers multiple opportunities for jobs, which helps keep the real estate market consistent.
If you're looking for investment property in the Memphis area or thinking about jumping in after learning that Forbes has named it one of the best areas for real estate investment in 2019, don't wait! Contact us today to learn how we can help you start investing in this growing market.