How to Buy Rental Property in Memphis: Our Process

The Memphis real estate market is steadily growing, making it prime time for investors to buy rental homes in this southern US city in Shelby County, Tennessee. At Revid Realty, we have extensive experience with the Memphis area housing market, and also with helping real estate investors find and purchase the right investment properties for their needs and goals. We can help you make your dream of owning an investment property a reality. 

The Perks of Buying Rental Properties in Memphis 

There are numerous reasons for real estate investors to consider purchasing an investment property in Memphis. Just to name a few:

It's a Great Long Term Investment 

Property values in this city have increased by nearly 40 percent in the last four years, meaning buyers can expect their properties to retain their value, if not appreciate in price as the years go by. As an investment property, this is crucial because it means that the home you buy now can provide you with a rental income for the coming decades and then turn a profit when it comes time to sell. 

There's a Strong Rental Market 

Memphis has a strong rental market, and the number of single-family homes that are part of new construction projects is significantly more than the national average. Rent rates in Memphis have also increased in recent years, with Zillow stating that rent rates in November 2022 averaged $2,008 per month in the city. This rate demonstrates around an 8% increase from the previous year, benefiting landlords and investors taking on new tenants. Vacancy rates in the city are also down around 4% since 2019, indicating that demand for rentals in Memphis and elsewhere in Shelby County is also rising. 

Homes Remain Affordable 

The good news for investors is that buying a rental home in Memphis isn't expensive despite the strong rental market. Memphis is one of the most affordable cities in the southern United States, with a cost of living that is 19% below the national average. Known for its affordable home prices and rental housing as well as great job opportunities, Memphis attracts young professionals and growing families from across the country looking to put down roots somewhere budget-friendly. 

First Steps: The Real Estate Investing Process 

Purchasing a rental property in Memphis as a first-time investor can be intimidating, but these steps and the right real estate agent can take the pressure off. 

Consider Your Financing Options

Before starting your search for an investment property, consider your financing options. Are you a cash buyer who can buy the home outright? If not, ensure you are pre-approved for a mortgage from your chosen lender and start shopping within your price range. 

Work with an "Investor-Friendly" Real Estate Agent

Not all real estate agents in Memphis know how to assist you in expanding your real estate investment portfolio. A team like ours at Revid Realty has the experience and skills with real estate investing to guide you in your search for the right property in the Memphis rental market. 

We understand why you're purchasing an investment property; therefore, we know exactly what qualities you're looking for in a rental house. Our team is well-versed in the buying process and can show you homes that are likely to bring in tenants rather than focusing on the quality of decor and other superficial features. 

Schedule a Home Inspection 

While furnishings and finishes may not be of great concern to investors, the structural integrity of the property is critical. Always schedule a home inspection before closing a deal to ensure the property is safe for tenants and doesn't need any major structural repairs. 

Close the Deal 

Once you are satisfied with the results of an inspection and have the financial means to purchase, we help you make a competitive offer and close the deal, making you a Memphis rental property owner. 

After You Buy 

At Revid Realty, we go one step further as a one-stop shop for everything you need after purchasing your home. Property managers are often a critical part of a rental property’s success, dealing with everything from prospective tenant screening to rent collection to maintenance and repairs. As a full-service property management company representing investment property owners, Revid Realty offers Memphis property management services that include:

• Home repairs
• Tenant screening
• Property management
• Real estate marketing
• Addressing maintenance requests 

As Memphis real estate industry veterans, we are prepared to help you manage your investment property with our 70+ years of property management experience. Contact us today to get started with your search for the perfect rental property in Memphis or Shelby County!