Welcome to the first installment in Reed and associates new series: Spotlight on Greater Memphis Investment Opportunities. In this series, we’ll highlight specific communities across the Memphis metro area where real estate investors are finding strong returns, rising property values, and growing rental demand.
We begin with Mason, Tennessee—a small town poised for massive change. With the arrival of Ford’s Blue Oval City, a multibillion-dollar electric vehicle manufacturing campus, and a surge of supporting commercial investment, Mason is quickly becoming one of the most talked-about areas for rental property investment in West Tennessee.
Whether you’re a first-time investor or an experienced landlord, understanding the financial and tax advantages of owning rental properties in growing areas like Mason is key to making smart, long-term decisions.
Why Mason and the Greater Memphis Area Make Sense for Investors
Memphis has long been a favorite among real estate investors due to:
Affordable home prices
Strong rental demand
Job market stability
Investor-friendly local laws
Now, with the opening of Ford’s Blue Oval City near Mason, the town is transforming into a hub for jobs, infrastructure, and housing demand. Thousands of workers will need housing—creating excellent opportunities for rental property investors.
Reed & Associates helps investors target these growing communities and provides full-service property management, so you can earn passive income without the stress of self-managing.
1. Tax Benefits: What You Can Write Off
Owning rental property comes with valuable tax deductions that may reduce your taxable income and increase your returns:
Repairs and Maintenance: Roof repairs, HVAC service, landscaping, and other fixes
Property Management Fees: Fees paid to Reed & Associates
Travel and Mileage: Trips to your rental property may be able to be written off—keep a mileage log.
Supplies and Cleaning: Pest control, lightbulbs, cleaning services, and similar expenses
Mortgage Interest: The interest portion of your mortgage payment
Property Taxes and Insurance4
2. Depreciation: A Long-Term Tax Saver
Depreciation allows you to deduct the cost of your property over time—even while it appreciates in value.
This powerful benefit may reduce your tax liability even if you’re making a healthy profit.
3. Offset Your Income with Passive Losses
If your rental property shows a “loss” due to depreciation or other expenses, that loss may be used to reduce your taxable income from other sources, such as a day job—depending on income requirements.
This is a great tool for part-time investors looking to build wealth while reducing their tax burden.
4. Long-Term Tax Advantages When You Sell
When it’s time to sell your rental property, the tax code works in your favor:
Capital Gains Tax: Long-term profits from real estate may be taxed at a lower rate.
1031 Exchange: You may be able to roll your profits into another property to defer capital gains taxes.
This lets you grow your portfolio while delaying taxes—keeping more of your money invested and working for you.
5. Build Wealth Through Appreciation, Equity, and Cash Flow
In addition to tax savings, real estate builds wealth in three ways:
Appreciation: Properties in areas like Mason may increase in value over time due to demand and development.
Equity: Each mortgage payment increases your ownership stake.
Cash Flow: Rental income that exceeds expenses becomes monthly profit.
With growing job opportunities and population expansion driven by Blue Oval City, now is the time to invest in Mason and nearby communities like Arlington and Oakland.
Work with Reed & Associates to Maximize Your Investment
As Mason prepares for long-term growth, early investors will benefit most. Reed & Associates helps identify high-potential single-family properties and provides full-service property management to protect and grow your investment.
We offer:
Expert market guidance in emerging communities
Local rental trend analysis
Tenant placement and leasing
Maintenance and rent collection
📍 This post is part of our ongoing series: Spotlight on Greater Memphis Investment Opportunities. Stay tuned for future articles featuring other high-growth neighborhoods and rental markets across the Memphis metro area.
This blog post is intended to provide general information with regard to real estate investing. The information provided herein is for informational purposes only and should not be construed as tax advice. Please consult your tax advisor for guidance specific to your financial situation and current tax laws.
Ready to explore investment opportunities in Mason, TN or beyond?
Contact Jeremy Snyder, Director of Client Relations, at (901) 287-1411 today.
Let Reed & Associates help you build wealth through smart real estate investments in the greater Memphis area.