Tennessee Turnkey Rental sub 65k

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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.

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

    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.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2d

    @Dylan Backer

    nothing at that price point is turnkey

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  • Bryce Axelrad
    Houston, TX · Member since 2025 · 34 posts · 9 votes
    12h

    @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.

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    • Dylan Backer
      OP
      Member since 2026 · 5 posts · 6 votes
      9h

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

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3h

    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!

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