About Our Investment Markets
Learn about why we choose to invest in the particular markets of Memphis, TN, Little Rock, AR, and DeSoto County, MS.
Why 2 Markets?
In the past, investors came to us, developed a relationship, and purchased all their investment properties in one market. When real estate prices were low, this strategy made sense.
As the housing recovery evolved and prices gradually rose, investors became more strategic with their acquisitions by spreading their portfolios across several markets.
Investing in two markets helps you build a risk-averse real estate portfolio; if one market sees a downturn, it won’t affect your entire portfolio. This makes sense for our investors and us. Also, it simply gives you more buying options to build your portfolio with 1 Investment Team.
Investing in two markets helps you build a risk-averse real estate portfolio; if one market sees a downturn, it won’t affect your entire portfolio. This makes sense for our investors and us. Also, it simply gives you more buying options to build your portfolio with 1 Investment Team.
We began building portfolios for investors beyond our own in Memphis in 2010. Recognizing the needs of our investor clients, we expanded in 2012. With many markets nationwide crowded with turnkey providers, we took a bold step into Little Rock, Arkansas, becoming pioneers in turnkey investments in that city. Today, while a few other turnkey companies have followed our lead, we remain the only one that is truly locally owned and operated as one of our operating partners is from, lives and deeply connected to the Little Rock.
Why Memphis?
Simply put, Memphis is on the map as a cash flow market. Memphis makes sense because:
- Acquisition price vs. rental amount is favorable for excellent cash flow
- Low property taxes
- The linear market provides a steady cash flow
- Favorable landlord laws
- Blue-collar city with a lot of blue collar jobs makes for a perfect resident base
- Occupying rental homes has never been hard for us
Economic Drivers - Stable Jobs
Memphis is a city built on a diverse economic foundation, with key industries driving growth and stability.
Logistics: The logistics and transportation sectors, led by FedEx based out of Memphis, are central to the cities economy. The presence of Fed EX has earned Memphis the nickname "America’s Distribution Hub." Major rail lines along I-40, which spans coast to coast, and I-55, a critical north-south route crossing the Mississippi River, establish Memphis as a key logistics hub. When it comes to port cities, Memphis boasts one of the largest river ports in the nation, supporting extensive river-based freight operations. Combined with the presence of FedEx's global hub, Memphis solidifies its position as one of the top logistics sectors in the United States. Not only does Fed Ex employ a large number of people, it has attracted numerous businesses to the area, fostering economic develo Memphis As of 2022, the Greater Memphis area boasts over 119,000 jobs in the supply chain and logistics sector, spread across more than 3,600 companies. This marks a 25% increase since 2012, adding approximately 24,000 jobs, and a 16% rise since 2017, surpassing the national average growth of 11%. - Source: Memphis Chamber of Commerce
Healthcare is another pillar of the Memphis economy. With institutions like St. Jude Children’s Research Hospital and Baptist Memorial Health Care, the city serves as a regional medical hub. These industries create a consistent demand for skilled professionals, from executives to support staff.
Manufacturing is a significant contributor to the local economy, with major companies like International Paper, AutoZone, Mueller Industries, ABB (formerly Thomas & Betts) headquartered in Memphis.
Education contributes to many faculty jobs and students with 21 colleges within a 50 mile radius.
The city’s thriving and diverse economy creates a steady flow of potential tenants. Job stability in logistics and healthcare translates into consistent rental income. The city's proactive approach to economic development ensures a continued influx of new businesses and workers, keeping the rental market in demand. Memphis is a blue-collar, hard working town, with a workforce that thrives in industries like logistics, manufacturing, healthcare, and transportation. This strong foundation of steady, skilled, and essential jobs creates a stable tenant base looking for well-maintained homes lose to their jobs - ideal for rental property owners.
What is Happening Now - Updated December 2024
- Monogram Foods: This strategic food manufacturer announced plans to move its corporate headquarters to the redeveloped Crosstown Concourse in Memphis by spring 2025.
- xAI: Founded by Elon Musk, xAI is operating the world's largest supercomputer in Memphis, marking a substantial investment in the city's technological infrastructure.
- Reconext: The Texas-based aftermarket electronics company announced a $9 million expansion into southeast Memphis, bringing over 200 new jobs. The facility is expected to be fully operational by early 2025.
- Ford Motor Company ongoing construction of an electric vehicle and battery manufacturing plant at the Memphis Regional Megasite, known as BlueOval City. The 5.6 billion dollar project is expected to create 5,800 jobs to the regional economy.
- Buc-ee's - The Texas-based chain Buc-ee's is opening 2 new 74,000-square-foot stores in West Memphis, AR and Fayette County (1 county over), further boosting the regional economy with 400 well paying jobs. Both are short drives from Memphis.
Why Little Rock?
Like Memphis, Little Rock has some of the same drivers as to why Little Rock is an excellent cash flow market:
- Acquisition price vs. rental amount is favorable for excellent cash flow
- Low property taxes
- The linear market provides a steady cash flow
- Favorable landlord laws
- Growing number of people renting
- Unemployment consistently below national average, currently at 2.7% (December 2024)
Little Rock, Arkansas, has been recognized for its economic diversity. According to the City of Little Rock's Economic Development Division, Moody's Investors Service ranked Little Rock as having the second most diverse economy in the nation. Source: LittleRock.gov
1. Healthcare and Medical Research: University of Arkansas for Medical Sciences (UAMS) is one of the state's largest public employers, UAMS, along with its partners—Arkansas Children's Hospital and the Central Arkansas Veterans Healthcare System—has a combined annual economic impact of approximately $5 billion. These institutions not only provide extensive employment opportunities but also position Little Rock as a hub for medical research and healthcare services.
2. Government and Public Administration: Serving as Arkansas's capital, Little Rock hosts numerous state government agencies and offices, contributing significantly to local employment and economic stability.
3. Transportation and Logistics: The Port of Little Rock, designated as Foreign Trade Zone 14, serves as a crucial hub for trade and industry. It hosts numerous international corporations, solidifying the city's position in global commerce
4. Corporate Headquarters and Financial Services: Little Rock is home to the headquarters of several prominent companies, including Dillard's Department Stores, Windstream Communications, Acxiom, Simmons Bank, and Bank of the Ozarks. These entities play a crucial role in the city's economic landscape, offering substantial employment and fostering business growth.
6. Manufacturing: The manufacturing sector in Little Rock produces a diverse array of goods, ranging from aerospace components to consumer products, supporting both local employment and export activities. Approximately 12,000 jobs are tied to manufacturing. - Source: Industry Select
These sectors collectively underpin Little Rock's economic vitality, fostering a resilient and dynamic environment conducive to sustained growth and development.
