Many people know Memphis only as the home of Elvis’ Graceland. But that Tennessee city has much more to offer – a range of features that make it one of the hottest income property markets in the US today. In a recent episode of the Creating Wealth Show, host Jason Hartman talks with Memphis market specialist Ryan about what makes the city so desirable for investors.
And, as always, Jason Hartman opens the show with a rundown of the upcoming Chicago-area property tour, a 3 day event starting on July 15 and including stops in Chicago, Grand Rapids and Detroit. Details are available in the Events section of this website.
Jason also responds to a voicemail from Roger, a listener who asks about prior podcast episodes discussing the concept of “managing the manager” in rental property – strategies for getting the most out of your property management when you’re not able or inclined to manage your properties yourself.
Observing that even with rents rising faster than home prices, renters are not becoming home buyers, Jason notes that this is perhaps the best time in history to invest in rental property – and a search of the Jason Hartman site’s archive will turn up posts and podcasts on just about any topic related to income property investing.
Memphis is Heating Up
Episode 539 of the Creating Wealth Show features a conversation with guest Ryan, a Memphis based local market specialist who reveals what makes Memphis so attractive to investors today.
The Wall Street Journal has called Memphis the #1 housing market in the country. CNN’s Money magazine names it one of the ten hottest markets nationwide. And Jason Hartman has held his Meet the Masters of Investing and property tour weekends here as well. But what’s so great about Memphis?
Memphis is a Renter’s City
Today’s housing market in general is a “renter’s market.” Homeownership is hovering near record low rates, and economic conditions are making it harder for people to buy homes if they want them. And an increasingly mobile society led by the 18 to 35 year old millennials isn’t interested in being tied down with a house, which could quickly become a liability if a sudden opportunity arises in another area.
What’s more, increasing numbers of people are just choosing to be permanent renters, freed of the maintenance and expenses required to take care of a house.
Even in that kind of market, Memphis leads the way in rentals. The city’s housing profile consists of 46 percent renters, compared to around 30 percent nationwide. And according to reports by local property managers, Memphis boasts a vacancy rate of 5 percent or less year round.
Memphis Attracts Business and Industry
Memphis is becoming a mecca for businesses and industries of all kinds. Some are new startups taking advantage of the city’s climate, diversity and relatively low lost of living. Others are moving operations to the area from places in the Northeast, where flatlined economies limit opportunities and the West, where high costs and water shortages make it costly to conduct business.
Those businesses bring workers too, or create jobs for them that lure people to the area, which further fuels the demand for shorter term rental housing in the area.
Memphis is Diverse and Dynamic
Elvis aside, Memphis is growing as a cultural hub, with a thriving music and art scene as well as easily accessed shopping and other amenities. Renters want to live in these dynamic markets, and Ryan’s job is to help investors find the properties that appeal to them and promise a good ROI.
Ryan’s company is dedicated to helping investors find the properties that are right for them. They tour the city looking for appropriate properties, which they grade as A, B or C in terms of quality, location and other factors. Clients can set parameters in, many directions, too. For example, they can state preferences about whether or not they’d like to accept tenants on government assistance, such as Section 8, or not.
Taking all these factors into account, potential investors can find just about anything they’re looking for, with the poetntial to generate income for years to come in one of the most dynamic and investor-friendly cities in the US.
As Jason points out, there is no real “US housing market.” That’s why successful investors are wiling to become “area agnostics” with diversified holdings in several markets. And as Ryan reveals, the Memphis market is an investor–friendly destination for wealth building through income property. (Featured image:Flickr/davidscaglione)
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