Tennessee Turnkey Rental sub 65k

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Tennessee Turnkey Rental sub 65k

Dylan Backer
Member since 2026 · 5 posts · 8 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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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
6d

@Dylan Backer

nothing at that price point is turnkey

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    6d

    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
    6d

    @Dylan Backer

    nothing at that price point is turnkey

    2Reply
  • Bryce Axelrad
    Houston, TX · Member since 2025 · 34 posts · 11 votes
    4d

    @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 · 8 votes
      4d

      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
    4d

    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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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    3d

    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!

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  • Dan Duenas
    Lender · Member since 2026 · 21 posts · 10 votes
    2d

    You're not getting turned down on credit — you're getting turned down on loan size. Most institutional and DSCR lenders run minimums of $75k–$125k (mine is $125k), so a ~$50k loan is below the floor no matter how good the deal is. That's the whole story.

    Realistic options at that price point: a local community bank or credit union portfolio loan (they'll do small balances, but slowly), seller financing from the current owner, or — the one most people miss — a blanket loan across multiple properties. One loan secured by 2–3 of your properties clears the minimum in a single loan and you save on fees vs. financing them one at a time.

    If you pick up another property or two and want to see what the blanket structure looks like, happy to run the numbers. — Dan

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  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 59 posts · 8 votes
    2d

    Honest take on ~$50k TN turnkeys: a lot of DSCR desks quietly floor around ~$75–100k loan amount, so you're not imagining the ghosting. Paths that usually still work are cash (or a local bank/portfolio shop that relationship-underwrites small balances), a short bridge/private money close then season and refi once you have rent history, or buying a slightly larger deal that clears those min floors. Ask every desk their min loan amount in writing before you waste a week on a prequal — TN coverage exists on investor desks; the filter is size, not the state.

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  • Jiao Liu
    Lender · Houston, TX · Member since 2026 · 25 posts · 8 votes
    2d

    Hi Dylan, small-balance DSCR loans do exist — the reason most lenders pass is that the fees and work are the same as on a bigger loan, so many set their minimums at $100K+. The ones that do go small look at three things: the rent versus the payment (the DSCR), your credit, and whether you hold the property personally or in an LLC. If you're open to it, share the city, what the place will rent for, your rough credit range, and whether it's in an LLC — I'll tell you honestly whether the numbers work for a sub-$65K loan before you spend more time chasing lenders.

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2d

    These properties are mostly garbage money pits at that price point. You can easily spend well over $20k on random repairs and then be in the red $20k as the property can not absorb the repair cost but if want do them I have some clients who buy a bunch cash and then do cash out refi DSCR on the whole package. So you have more then one property tied to one loan, saves fees that way too.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Hey Dylan,

    I have seen these properties financed with rehab with a bridge loan. There are some lenders that do not have a minimum as is value requirement, however their minimum loan amount is $50k.

    [email protected]818-269-7983
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  • Claudia Hawkins
    Member since 2026 · 7 posts · 1 vote
    1d

    Have you tried Sunny Y Chen's capital management? You should have his details right ?

    0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 666 posts · 227 votes
    13h

    Hey Dylan! You won't find much if any DSCR options at that but conventional loans don't have the same minimum loan size. That's typically what we end up doing for investors in that price point anyways. You can always apply for an exception to loan size for DSCR, but again that size may or may not take. Feel free to reach out though if you'd like to look at either of those.

    [email protected]734-645-7722
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