Long Term Rental In Memphis

[Jason Koford]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000

I am the managing and credit partner on this investment. We have had the same tenant in this property since we purchased it.

What made you interested in investing in this type of deal?

I was helping other invest in these types of deals and wanted to buy one for myself.

How did you find this deal and how did you negotiate it?

I was working for a company that helps investors buy already rehabbed properties. They were turn key and ready for tenants. The company I worked for even had a relationship with the property manager.

How did you finance this deal?

My partner. He brought 100% of the funds for this deal. We purchase with 20% down.

How did you add value to the deal?

We didn't. Just put tenants in.

What was the outcome?

It has been going great for the most part. We tried to sell in 2023, but the tenant had health issues, so we decided to let them stay. In January 2024, our pipes froze, which caused major problems. We are still looking to sell, but we want to make sure the tenant is taken care of first.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a company providing turn-key rentals. It was great back then. And equity growth has been great since then. I could see how purchasing before the rehab I could have added additional equity but then I would have had to manage the purchase and rehab from out of state. For what it was I think it was a great investment.