Brand new homes available in Memphis, TN

[James Wachob]

We have had a great response to brand new homes as rental properties. My clients from AU to China have decided that a new home is "the way to go!"

On paper the homes do not preform as well as the fix and flip homes. Let me explain... a brand new 3 bed 2 bath 2 car garage home that sells for $127,900 only rents for $1200 per month.

Compared to a 30 year old home that sells for $85,000 and rents for $950 per month.

However, a brand new 25 year Owens Corning shingle roof, high efficiency HVAC unit, new hot water heater, Delta faucets, and local code is much more strenuous today compared to 30 years ago.

Building materials are more efficient and homes are much better insulated. 

Another factor is the quality of tenant we are attracting! Renters absolutely LOVE new construction. So we are able to have more strenuous guidelines, no pets, 2 year or longer rental agreements, etc.

We have recently started a lease-purchase program and the tenants seem to have more of a homeowner mentality. The yards are well kept and the homes were decorated for Christmas this past December.  It feels really amazing to be involved in a project like this were everyone wins!

The renter gets a great house, the investor makes really good returns, and we will build several more hundreds of homes for the next few years.