Tennessee Turnkey Rental sub 65k

Private Lending & Conventional Mortgage Advice
3dFollow

Tennessee Turnkey Rental sub 65k

Dylan Backer
Member since 2026 · 5 posts · 6 votes

Has anyone had experience getting a loan on an investment property under $65k?

I’m looking at a rental property in Tennessee for around $50k. It doesn’t need much work to become rent-ready, but I’m having trouble finding lenders willing to finance a loan that small.

If you’ve successfully financed a sub-$65 investment property, I’d love to hear what strategy you used and the process you underwent.

0Reply
464 views

6 Replies

Jump to latestLatest
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    3d

    I’m going to try my best to talk you out of this strategy. How do you cover ongoing operating expenses and major capital repairs when the property is worth less than $65,000? A roof, heating system, or sewer replacement can cost just as much as it would at a more valuable property. Lenders recognize these same challenges. On top of that, the administrative cost of originating and servicing such a small loan can make it unattractive to them. But for you, its the sustainability of the property that's the issue you should be concerning yourself with. Keep in mind you're still guaranteeing the loan and its incredibly easy to find yourself upside down.

    [email protected]
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3d

    @Dylan Backer

    nothing at that price point is turnkey

    0Reply
  • Bryce Axelrad
    Houston, TX · Member since 2025 · 34 posts · 9 votes
    22h

    @Dylan Backer , a $50k purchase with 20% down means you're looking for a $40k loan. That's a tough size for an investment property loan. The work involved doesn't shrink with the loan amount, but the compensation does. That's why a lot of lenders and brokers avoid smaller deals, and why fees can be high relative to what you're borrowing.

    We help investors with these smaller loans, often by packaging them with other rentals. If you have other properties, that's one route I'd look at.

    For a standalone loan under $50k, you'll need to find someone whose minimum fits or who can consider an exception. A private lender like myself will have more flexibility to look at the asset, its value, the location and how the loan gets repaid. I’m happy to look at the deal and see whether there's a structure that makes sense.

    0Reply
    • Dylan Backer
      OP
      Member since 2026 · 5 posts · 6 votes
      18h

      Absolutely I'd love to connect and discuss the deal further.

      0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    13h

    Most DSCR Lenders are going to have minimums of around $100k or maybe $75k, a rare lender will go down to $50,000 though so its out there right now in 2026!

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    4h

    Dylan, the challenge with a $50K property is that some lenders simply do not want to deal with a loan that small because their underwriting and closing costs are similar to a much larger loan. I’d look beyond traditional investment mortgages and compare the total cost of each option. A local bank, credit union, portfolio lender, seller financing, or even buying cash and refinancing later could produce very different economics.

    The important thing is to look at the property after all financing costs, not just the interest rate. On a $50K property, a few thousand dollars of closing and lender costs can have a much bigger impact on your return than they would on a $250K property. I’d also run the numbers as a cash purchase so you know what the property produces without debt. Then you can see whether financing actually improves your return enough to justify the additional cost and complexity.

    From the tax side, I’d also keep the acquisition and improvement costs well documented. Even on a small rental, depreciation, repairs, insurance, taxes, and interest can affect the actual after tax return.
    Happy to connect!

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®5241 Reviews
    WebsiteView Page
    TaxMD® | AI-Powered Tax Planning
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free