Are you looking to add a new investment property to your real estate portfolio? Look no further than a Memphis rental property. The Memphis real estate market has several elements that make it an attractive location for investors. They are affordability, a high percentage of renters, appreciation, and a high rent-to-price ratio.
Realtor says the average listing price for a home in Memphis, Tennessee is just $148. The average sales price is $180,000, which is almost half the average sales price in the U.S., according to Zillow's Home Value Index.
Over half (56%) of Memphis residents are renters. Renters are drawn to the Memphis area for its job opportunities and low cost of living.
House prices in Memphis have a one-year projected appreciation rate of 15-20%. One of the main reasons it's so high is that the demand for housing in Memphis is so high.
The Memphis real estate market also has one of the best rent-to-price ratios in the U.S. It averages just above 7%. This translates into the potential to earn an excellent opportunity for real estate investors to earn passive income and increase their cash flow.
The Memphis real estate market is an investor's market. Savvy real estate investors should consider purchasing a Memphis rental property while house prices are still affordable and there's still potential for a turnkey investment.
Memphis, TN, is located along the Mississippi River, east of Arkansas, and north of Mississippi. It's known for its BBQ, humid summer days, and as the birthplace of "Rock n Roll." But there's more to Memphis than ribs, the need for HVAC, and music.
Memphis is home to many incredible and unique neighborhoods and sprawling suburbs. Some of the best neighborhoods and suburbs in the Memphis area for real estate investors include Collierville, Cordova, East Memphis, Millington, and Southaven.
Forrest City, Arkansas, is another Memphis suburb worth noting on this list. Forrest City has even more affordable house prices than Memphis, which attract real estate investors, homebuyers, and renters who commute to Memphis. The median listing price in Forrest City is just $163 per square foot, and the median sales price is only $97,250.
Memphis presents the excellent potential for real estate investors to earn a solid return on investment.
Memphis has a solid rental market. Over half of Memphis residents are renters, and it's not likely to change anytime soon. Memphis has a strong economy with many well-known businesses that will continue to attract young professionals to the city for years to come.
According to the latest Freddie Mac House Price Index (FMHPI), Memphis has a one-year home price change of +16% and a five-year home price change of +55%.
A robust rental market combined with high projected appreciation rates makes a Memphis rental property an excellent prospect for real estate investors and property management companies.
Memphis has a diverse economy with many major industries. These include manufacturing, transportation, information technology, healthcare, and services.
Memphis is home to 9 Fortune 500 companies. They include FedEx, AutoZone, International Paper Company, and Mueller Industries. Memphis is also home to St. Jude's Children's Research Hospital.
Memphis's current and projected job growth rates outpace the national job growth rates. Combine the city's strong economy with its lower-than-average cost of living, and it's no wonder Memphis is growing at a rate of .6% each year.