Memphis Wholesale Market Analysis
Memphis is widely regarded as the cash flow capital of America. Ultra-affordable housing, strong rental demand, no state income tax on earned income, and one of the highest concentrations of out-of-state investor activity in the country make Memphis a top destination for buy-and-hold investors. For wholesalers, Memphis offers high volume deal flow, a deep buyer pool that includes both local and remote investors, and market dynamics heavily weighted toward rental investors.
Market overview
Key market indicators:
- Metro median home price: $170K-$220K
- Average wholesale assignment fee: $5K-$12K
- Primary buyer types: Landlords (60%), out-of-state investors (25%), flippers (10%), turnkey operators (5%)
Pricing by submarket
| Submarket | Median Price | Investor Activity | Primary Strategy |
|---|---|---|---|
| South Memphis / Whitehaven | $80K-$150K | Very high | Cash flow rental |
| Frayser / Raleigh | $100K-$170K | Very high | Rental |
| Orange Mound / Binghampton | $90K-$160K | High | Rental, flip |
| Bartlett | $220K-$300K | Moderate | Flip, rental |
| Cordova / Germantown | $280K-$400K | Moderate | Flip |
| Hickory Hill / Southeast Memphis | $120K-$200K | High | Rental |
What makes Memphis unique for wholesalers
- No state income tax on earned income (TN)
- Highest concentration of turnkey rental operators in the US
- Out-of-state investor activity is massive
- Property management quality varies widely — affects investor willingness to buy
Finding deals in Memphis
Successful deal sourcing in Memphis requires a multi-channel approach. Finding motivated sellers through direct mail, driving for dollars, and targeted outreach to inherited property owners all produce results. Pre-foreclosure outreach is another productive channel, particularly when combined with skip tracing for accurate contact information.
Build your buyer list before you have your first deal. Use Deal Run's investor search for Memphis to identify active cash buyers, landlords, and flippers based on actual transaction data in your target submarkets.
Recommended strategies
Turnkey pipeline
Source properties that need light renovation and sell to turnkey operators who renovate and sell to remote investors. Volume play.
South Memphis volume
South Memphis offers the highest volume of affordable deals. Assignment fees are smaller ($3K-$6K) but the pace can be very high.
Bartlett/Cordova flip market
The suburban flip market in Bartlett and Cordova attracts buyers seeking higher price points and better margins.
Common mistakes
- Ignoring property condition in ultra-cheap neighborhoods (some are worth less than repair costs)
- Not accounting for high crime areas that limit buyer pools
- Overlooking property management availability for out-of-state buyers
- Using flip pricing in what is overwhelmingly a landlord market
Deal analysis tips for Memphis
Accurate ARV analysis is essential in any market, but Memphis has submarket-specific factors that make neighborhood-level analysis critical. Run tight comps using proper methodology, account for local repair cost factors, and present both sale and rental analysis to maximize your buyer pool.
When presenting deals, create professional deal packages that include the financial analysis your buyers need to make quick decisions. In competitive markets, the wholesaler who provides the best deal package gets the fastest buyer response.
Related guides
- Find Cash Buyers in Memphis
- Wholesaling in Tennessee
- Complete Wholesaling Guide
- How to Calculate ARV
- Building a Buyer List