Investment property has been the start of many secure financial futures. It’s also been the bain of many annoyed landlord who entered into the transactions without good counsel and advice. Investment real estate varies remarkedly from region to region in characteristics and returns. In California, for instance, it’s fairly typical for net rental cash flows to be extremely negative. This makes real estate and extremely risk investment and successfull liquidation dependent on catching the wave so to speak of a good surge in real estate prices.
If you live in Memphis, you’re fortunate to have access to one of the most desirable markets in the country for investment property. People fly in from California to buy houses here! There are several investment wholesale companies in the area that market specifically to out of state buyers; though regrettably some of them are extremely aggressive in describing the statistics of various neighborhoods.
Investment property offers a combination of inflation protection, returns, and stability unmatched in my view by any other investment vehicle. Unfortunately, these characteristics come at a substantial liquidity cost and an unstable investment return. This means that you either need to start investing in real property early have savings that you typically invest that you can invest in a temporary shortfall or have saved at least $750,000 towards your retirement.
This amount allows you to make investment property an important but not exclusive part of your retirement plans. You need to keep a substantial portfolio of more liquid assets outside of your investment property and will need to own multiple units.
These properties will be
- Newer or recently renovated.
- In stable or upcoming areas.
- Managed by a professional investment company.
- Will largely be in the $60,000 – $120,000.
- Will be single family dwellings or condos that are individually deeded. (So the market for resale isn’t limited to investors.)
Please contact me today to see how Memphis real estate can work into your financial future. Below is a search of newer Memphis homes in what I consider the sweet spot.