Single-Family Rental Market Remains Strong
Local company, Memphis Invest releases strong Q2 results pointing increasing interest in Real Estate Investing
MEMPHIS, Tenn., Aug. 2, 2012 /PRNewswire/ -- Memphis Invest, one of the nation's leading providers of single-family rental real estate investment services, released its Q2 2012 activity report showing a 152 percent year-over-year increase in the number of homes sold to investors. The company sold 179 homes in the second quarter of this year, compared to 71 homes sold in Q2 2011. The report also shows that of the 179 homes purchased, 111 were sold to current investors with the company. With 62 percent of the homes being sold to current investors, it indicates a high-level of success and continuing interest in building multiple property portfolios.
Single-family rental real estate investment companies like Memphis Invest specialize in locating rental properties for private investors. After purchasing and renovating the properties, Memphis Invest places tenants in the home and manages tenant relations on an ongoing basis for its investors. Memphis Invest reported that as of the end of Q2 2012, they managed 1,321 properties in Memphis and Dallas, with 31 being managed in Dallas. So far in 2012 the company is purchasing an average of 46 homes per month in Memphis and 8-10 in Dallas, up from an average of 27 homes purchased per month in 2011.
The data reported for Memphis Invest Q2 2012 activity reflects continued growth in an investment strategy utilizing single-family rental properties by investors around the country. With 97 percent of Memphis Invests' clients residing outside the states of Tennessee and Texas, Memphis and Dallas continue to be attractive markets for individual investors. As demand continues to rise from renters looking for quality managed single-family homes, Memphis Invest sees opportunity for individual investors to enter the single-family home investment market.
Memphis Invest leased 158 rentals in Q2 2012 with an overall vacancy rate of 5.2 percent, down nearly 50 percent from Q2 2011 when it was 7 percent. At the national level, the current rental vacancy rate is hovering between nine and 10 percent.
The average home sale price for Memphis Invest during Q2 2012 was $80,902 up 9 percent compared to $74,378 in Q1 2011. Memphis Invest also reports that its year-over-year average renovation costs through Q2 rose 25 percent, from $14,125 to $18,730.
According to Memphis Invest Partner Brett Clothier, single-family property investors are buying right now for stable long-term returns and demand is rising fast.
"Our existing investors continue to post a very healthy demand for properties both in Memphis and Dallas," said Clothier. "By building multiple property portfolios, especially at discounted pricing, they are creating a fantastic hedge against inflation. After the properties are renovated, which 95% need extensive renovation, these properties provide consistent, quality housing where there is a high demand. That is a sound investment and real estate investors are recognizing that."
Local Memphis activity mirrors an emerging national trend. The National Association of Realtors recently reported investment home sales were up 65 percent in 2011, accounting for almost a third of all home sales in the U.S.
About Memphis Invest
Memphis Invest provides single-family rental real estate investment services to domestic and international clients looking to include residential real estate ownership in their investment portfolios. Founded in 2004, the company engages a professional network of portfolio managers, experienced contractors, appraisers and lenders to streamline the investment process for individuals looking to build their real estate investment portfolio without the burden of day-to-day property management. A privately held, family-owned business based in Memphis, Tenn., the company is led by two generations of employees committed to providing a personal level of customer service to investors by locating, renovating and managing tenant relations for each property.
For more information about Memphis Invest, visit www.memphisinvest.com or call 1-877-773- 9998.
SOURCE Memphis Invest
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