Real estate investments are a substantial part of any healthy real estate market. Recently, the Wall Street Journal recognized Memphis as the number one city in the United States for investing in single family residential properties. Number one! The rankings were based on the cap rate, which in Memphis is 10.38%, followed by the number 2 city of Saginaw, Michigan, with a cap rate of 10.32%.

The Germantown local movers have found that the cap rate is correlated to the net profit compared to the current value of the asset. Memphis is an ideal location for investment property purchases thanks to the profit that can be made by interested real estate investors in the area. Keep in mind- a real estate investor does not need a huge portfolio–you can buy one house at a time and flip it to make a profit before purchasing further properties.

Foreclosures are dropping in the area, and institutional investors are moving into the area more frequently. As the inventory of available homes in the area decreases, the market will only get tighter and increase the eventual worth of properties for investors to resell or rent out to local tenants.

Interested in buying an investment property in the Memphis area? Don’t hesitate! Take advantage of these prices and get your personal finances poised to grow with a real estate investment.