Updated over 6 years ago on .
East Memphis Single Family
Investment Info:
Single-family residence buy & hold investment in Memphis.
Purchase price: $65,000
Cash invested: $22,250
Contributors:
Taylor Adams
Cute little 3 bedroom house with a carport in desirable East Memphis.
What made you interested in investing in this type of deal?
We were looking for an easy deal to help us break into the Memphis market. It only needed a small amount of repair, had long term tenants on a two year lease, and had good cash flow compared to he price.
How did you find this deal and how did you negotiate it?
We found this deal through an agent on the MLS. We negotiated mostly on price. The seller had recently replaced the roof and had a low tolerance for making more repairs, but was willing to drop $7,500 from the original list price.
How did you finance this deal?
A conventional loan with 25% down.
How did you add value to the deal?
We are adding value by fixing some small cosmetic water damage from a previous roof leak and other minor repairs.
What was the outcome?
We own the home and are collecting rent every month!
Lessons learned? Challenges?
This was not only our first home in Memphis but our first time inheriting tenants. We learned a lot about the pace of how things are done in Memphis and people to know, as well as what to look for in the due diligence process when inheriting a tenant.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ben Reed with Reed and Associates is an excellent agent and property manager. He has outstanding character and hustle and I would recommend him and his company to anyone.