Investor commentary
Memphis is a high-yield, high-management market. Only buy in B-grade neighborhoods or above; underestimate turnover at your peril.
How to interpret Memphis's rental yield
A 9.2% rental yield in Memphis compares favorably to coastal gateway markets (typically 4–5%) and signals meaningful month-one cash flow potential. Always underwrite with the property's actual taxes and insurance — neither tracks national averages perfectly.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 9% vacancy as baseline; stress to 12% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.