Memphis Investment Properties
“Solid Income Property in the Mid South”
- Centrally located.
- Home to nation’s busiest cargo airport.
- Headquarters three Fortune 500 companies.
- Landlord friendly market.
Why Invest in Memphis Income Properties?
Memphis, Tennessee is an attractive real estate market for many of our clients looking for a high rent to value ratio and solid cash flow in a growing and business-friendly economy. The state’s laws are favorable to landlords, there is no state income tax, the cost of living is low, and a higher than average percentage of the population are renters. Memphis is located on the Mississippi river in Shelby county in southwest Tennessee. It is a 212 mile drive to Nashville, 395 mile drive to New Orleans, 389 mile drive to Atlanta, and 454 mile drive to Dallas.
How to Invest in Memphis Turnkey Properties
Jason Hartman has helped hundreds of clients find rental properties in Memphis over the last decade and owns property there himself. Memphis is a linear real estate market that has historically seen consistent and steady appreciation and not large ups and downs in home values seen in cyclical markets. In Memphis it is important to choose the neighborhood carefully and our experienced investment counselors have the knowledge to provide guidance to place you in the right type of homes and avoid unsatisfactory areas. Contact us to talk with an investment counselor who will help you find the right properties to reach your goals. You can view currently available properties in Memphis here.
Quick Facts about the Memphis Market:
About 46% of the housing profile are renters, much higher than the national average of around 30%.
Memphis residents have an average credit score of around 600, which is in the bottom 2% of cities in America. Only 19% of people in Memphis have excellent credit scores.
Memphis is the second largest city in Tennessee, just behind Nashville, with over 650,000 residents.
Memphis is the 23rd largest city in the United States.
Money.com named Memphis as one of the least expensive cities in the country to raise a child at $208,322. It is almost half as expensive as raising a child in San Francisco which costs $402,112.
Forbes ranked Memphis #47 in the country for cost of doing business and #105 for Best Places for Business and Careers.
Forbes named Memphis the #4 on their Happiest Cities to Work For
CNN named Memphis as one of the top 10 cities to launch a startup due to the low cost to start a business.
Memphis Economy
Memphis has a robust economy with several large companies in the distribution and manufacturing sectors. According to the Greater Memphis Chamber, the world class infrastructure and central location to a large portion of the U.S. population has helped Memphis gain the reputation as “America’s Distribution Center”. The healthcare sector is highlighted by the world renowned St. Jude’s Children’s Research Hospital, which attracts doctors, nurses, and researchers from across the country to help find cures for childhood diseases. The city also hosts many conventions, concerts, and sporting events at FedExForum, home to the city’s NBA basketball team.
Fortune 1000 Companies Headquartered in Memphis
FedEx (#58)
International Paper (#127)
AutoZone (#280)
ServiceMaster (#819)
Mueller Industries (#942)
Source: Greater Memphis Chamber
“75% of the U.S. population can be reached within a 20 hour drive time from Memphis, Tennessee” – Greater Memphis Chamber
“The Port of Memphis is the fifth largest inland port in the U.S.” – Greater Memphis Chamber
FedEx (#36) and St. Jude (#89) named to the Top 100 Best Workplaces for Millennials
Memphis Employment
According to the Bureau of Labor Statistics, employment in the Memphis metro area was 617,990 with an annual mean wage of $43,950 (May 2017). A lot of the jobs are in transportation and logistics due to the presence of FedEx. A good percentage of the workforce works in healthcare and education with St. Jude hospital attracting top researchers and doctors from across the country.
Transportation and Material Moving Occupations: 87,600 employed with an annual mean wage of $33,860.
Healthcare Practitioners and Technical Occupations: 38,200 employed with an annual mean wage of $75,380.
Education, Training, and Library Occupations: 32,870 employed with an annual mean wage of $52,380.
Construction and Extraction Occupations: 19,960 employed with an annual mean wage of $39,780.
Source: Bureau of Labor Statistics
Entertainment and Activities
Memphis Grizzlies – Memphis is the home of the NBA’s Memphis Grizzlies team which plays their games in FedExForum in downtown Memphis.
Graceland – Elvis Presley’s Graceland attracts between 500,000 to 750,000 visitors each year and is the second most visited private home in the United States (after the White House). The Graceland campus also has a 450-room resort hotel and a 200,000 square foot museum and performance space.
Memphis has over 200 miles of bike-friendly lanes and much more is being constructed.
Memphis was named one of “The South’s Tastiest Towns” by Southern Living.
Universities and Colleges
The University of Memphis – A public research university with an enrollment of over 20,000 undergraduate and graduate students.
Hospitals
St. Jude Children’s Research Hospital – One of the top children’s hospitals in the United States. It is ranked #4 in the nation by US News for the pediatric cancer specialty
Frequently Asked Questions:
Q: Is Memphis landlord friendly?
A: Yes, the state of Tennessee has fair laws for landlords and tenants. If rent is not paid, the landlord can give the tenant notice to vacate within a limited time and then file for eviction. The landlord is required to keep the home in a “fit and habitable condition” and the renter is responsible for keeping the home clean and safe, disposing of garbage, and following the landlord’s rules. See the The Tennessee Uniform Residential Landlord and Tenant Act for more information.
Additional Resources
The Creating Wealth Show, Episode 255 – Real Estate Investment Market Profile for Memphis, Tennessee
The Creating Wealth Show, Episode 539 – Memphis Market Profile from Ryan, Local Market Specialist
Client Case Study: Adam Jackson, 11 Properties in One Year in Memphis and Jackson
Client Case Study: Diana, 5 Properties in Memphis and Jackson
Memphis Housing Authority: http://memphisha.org/
Memphis Chamber of Commerce: https://memphischamber.com/