Memphis Rental Property #12
Last updated: 2026
NOTE: This article was published in 2026, but the property was bought way back in 2019. The Annual Updates section at the end of the article has details about how the property has performed since the time of purchase.
Here is my dozenth Memphis property! Just to review: this was one of the 14 I houses I purchased very quickly from May to September of 2019 — my opening acquisition sprint after I left my “first career” in retail, sold my NYC condo to become a renter, and used the proceeds to start building a portfolio that would generate real cash.
This one is not too far from Property #11, and is also in the 38135 zip code. Also like Property #11, it’s once of the nicest homes in my portfolio — it’s also the NEWEST home in my portfolio. Built in 2017, it was just a few years old when I bought it, and therefore can fairly be called a build-to-rent acquisition for me.
While the purchase price ($150,000) was among the highest I paid for a house in my portfolio, the house has performed well, attracted solid tenants, and been exceptionally easy to manage. These are the upsides you hope for with a newly built home, and they have certainly manifested with this property.
Alright, let’s take a closer look at this house and deal!
Property #12: The Deal
The sourcing of this deal was also very similar to Property #11. The turnkey provider I had been working with had purchased the house brand new in 2017, placed a tenant, and held it for a few years. This was among the properties he was willing to sell me when I told him I was looking to buy a bunch of homes, so this was technically an off-market deal.
As I mentioned, I bought the house for $150,000, and I inherited that first tenant who was paying $1,265/mo. Not the most amazing price-to-rent, of course, but it still produced solid cash flow, as we’ll see.
Here are some additional facts about this particular house:
3-beds, 2 full bath
In the 38135 zip code, great B+ neighborhood
Built in 2017
1350 square feet of interior space
Central air
LVP floors throughout
Driveway, 2-car attached garage
Tenant in place paying $1,265/mo.
Property #12: Due Diligence
My turnkey provider had already done a full home inspection, and shared this with me. It was perfectly clean, as we’d expect for a 2-year old house. The tenant had lived in the property for 6 months, and had no blemishes in their payment history.
However, there was an issue with the appraisal, which initially came back at $136,000, well below the contract price of $150,000. This meant that I would potentially have to bring additional cash to closing, since my lender would only lend up to 80% of the appraised value. After several weeks of delay, though, the seller was able to get a revised appraisal at $150K, and we eventually closed at the end of June 2019.
Here’s what the house looked like at the time of purchase — she’s a beauty!
Property #12: The Financials
I secured a conventional 30-year fixed rate loan at 5.10%, with a 20% down payment. Like many of my other loans, this mortgage is actually in my spouse’s name alone, a strategy you can use as a married couple to expand your access to conventional financing (max of 20 loans vs. the normal 10).
One other interesting thing about this house is that it sits in an “unincorporated” area of town, which means that no city taxes are due (not to Memphis, nor any of the other incorporated places surrounding Memphis, such as Bartlett, Germantown, and others.) This makes the tax burden lower on this house than it would otherwise be.
I used the RIA Property Analyzer to re-create the initial numbers on this property, so you can see what the numbers would have looked like back in 2019 when I bought it:
Purchase Price: $150,000
Monthly Rent: $1,265
Monthly Cash Flow: $186
Cap Rate: 6.7%
Cash on Cash Returns: 6.7%
Total ROI 2% Appreciation: 20.7%
(Want to use this calculator? It’s free!)
OR
Using the multi-year model in the RIA Property Analyzer, we can visualize some of the main long-term trends assuming a long-term inflation rate of 2%:
Cash flow increases over time. This is mostly because rent and expenses are expected to rise with inflation, but one major expense (my mortgage) is fixed.
Cash Flow Year 1: $2,240
Cash Flow Year 10: $4,207
Cash Flow Year 25: $8,374
Mortgage paydown accelerates over time. This is because of the way banks amortize loans – each month, a little bit more of your fixed payment is principal, and a little bit less is interest.
Mortgage Paydown Year 1: $1,731
Mortgage Paydown Year 10: $2,743
Mortgage Paydown Year 25: $5,906
Total returns on cash increases over time. This is a consequence of the first two graphs – I will make greater total returns over time on the same initial investment of cash.
Total Returns on Cash Year 1: 20.8%
Total Returns on Cash Year 10: 31.4%
Total Returns on Cash Year 25: 57.1%
Overall, this property had an excellent quality/desirability, while still offering very solid cash flow. It has performed well from Day 1, and experienced almost no surprises or major operation stress. That kind of “smooth ride” is never guaranteed, but you increase your chances significantly with a newly-constructed home in a good area.
Property #12: The Deal Sheet
Finally, to sum up Property #12 and its financials, here’s the full “deal sheet”:
Looking for YOUR Next Property?
If you need help finding, analyzing, and purchasing YOUR next property — or your first one! — schedule a free initial consultation with me. I’ve helped over 120 private coaching clients invest with confidence and build cash-flowing rental portfolios of their own.
Annual Updates
For all Property Spotlights, I come back at the end of each year to provide a brief narrative of what happened at the property that year. I also update my annual and cumulative figures for the property, including cash flow, equity growth, and occupancy.
2019
Very smooth first year after I bought the property in June, with no maintenance or repair costs. The property produced $2K+ in cash flow for the year — very good results for any Year 1!
2020
The tenant vacated at the end of their lease in May, but the turn was ideal: it cost only $1K or so for paint touchups and other misc items, and the house re-rented in less than a week at $1,395/mo. (This was at the beginning of the pandemic boom in home and rent prices — we also see that impact in the home value, which increased by over 10% for the year.) Cash flow was nearly $3K for the year despite the turn, which is pretty remarkable.
2021
Incredibly smooth year with almost no maintenance costs. Tenant renewed in June at $1450/mo., and cash flow for the year jumped to $5,700.
Home values continued to zoom upward this year, as with most of my properties.
2022
Tenant renewed for another year at $1,537/mo., which is pretty close to market rent. They continued to pay on-time every month without fail.
Very low maintenance again, with just $300 spent on occupied home inspections and a single plumbing visit. Cash flow for the year grew again to nearly $6,200.
2023
Pretty much the same boring story in 2023 (boring is great!) The tenant renewed again with an increase to $1,600/mo, maintenance costs were just a few hundred dollars, and cash flow exceeded $7,000.
2024
My wonderful tenant vacated after four years in the house, due to a job offer in another city. Once again, though, the turn was very cheap ($1,600), and the house re-rented quickly at $1,545/mo. These quick, inexpensive turns are a function of the house being newly built, but also because the tenants have take very good care of the home.
Even with the turn, the house produced over $3,500 in positive cash flow.
2025
Anothing boring, profitable year: the tenant renewed for a second year at $1,575/mo., maintenance costs were just $400 (an HVAC visit and a small fix to the garage door), and cash flow was again nearly $7,000.
About the Author
Hi, I’m Eric! I used cash-flowing rental properties to leave my corporate career at age 39. I started Rental Income Advisors in 2020 to help other people achieve their own goals through real estate investing.
My blog focuses on learning & education for new investors, and I make numerous tools & resources available for free, including my industry-leading Rental Property Analyzer.
I have also served as a coach to over 100 private clients starting their own journeys investing in rental properties, and have helped my clients buy millions of dollars (and counting) in real estate. To chat with me about coaching, schedule a free initial consultation.
