Memphis, TN. Named #1 City For Single-Family Rentals
Realtytrac, the California based on-line foreclosure marketplace has quickly become a fantastic data aggregation site as well and their recent release naming the Top 20 markets to buy single-family rentals made a lot of headlines. Using data, Realtytrac names the 20 Top Markets by price point and income potential. At Memphis Invest, we realized several years ago that there were certain dynamics that made Memphis unique when compared to many cities around the country. This has been fairly well documented by the number of times Memphis appears on man Top lists for everything ranging from affordability, retirement, starting a business, starting a family, receiving health care...and now for investing in single-family homes.
The report names several cities located from Nevada to Florida and several cities in between. However, we want to make sure the focus remains on the opportunity to invest and remind everyone that opportunity alone does not make a property a good investment. We have spent years trying to find the balance between opportunity and security to help investors make smart, well thought out decisions instead of hasty decisions that leave an investor saddled with a poor investment in a great investment city. A great partner with excellent response and service as well as high quality property management have to be in place for an investor to be able to maximize their investment. There is a lot of competition for individual investors and a lot of poor quality investments being peddled looking for high-risk investors. Conservative investors who value patience, stability and long-term outlook have a chance right now to knock the opportunity out of the park. It appears that Realtytrac agrees.
"Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone," said Daren Blomquist, vice president at RealtyTrac. "But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment. It often just takes persistence and willingness to pass on bad deals. The top 20 markets we selected represent the best chance to buy rental homes that generate good cash flow, but opportunities are available in most markets across the country given the combination of relatively low prices, low interest rates and a strong rental market."
If you would like to learn more about investing in Memphis, we'd love to share some data on this great city and how we work with investors to put together consistent performing portfolios of single-family houses.