Case Study: 14‑Unit in Memphis – 7.9% Cap, Clear Upside
We’re reviewing a stabilized 14‑unit in Memphis, and I’d like to get feedback on how others would underwrite it
Asset: 14‑unit stabilized apartment building
In‑place cap rate: 7.9% (verified NOI: $76,680)
Upside: Clear path to 15%+ cap rate through rent stabilization
Profile: Profitable from Day 1, with substantial upside already built in
I’m curious how other investors here would underwrite this type of deal.
• Would you treat the subsidized tenant base as stable income or discount it?
• How would you model the rent‑up timeline for the upside?
Happy to compare notes. If anyone wants to see the full 5‑point investor package with our underwriting, DM me and I’ll share it.
Most Popular Reply
Hi
We are based in Memphis TN and have over 800 active investors. Don't want to step on any toes (I assume you have a local agent that is helping you). We'd love to see more multi-family properties sold and stabilized. It would be a win/ win for the whole area.
Best wishes!