memphis deal analysis

[Marky Suazo]

Hello fellow BP members!

I'm currently looking at two properties right now and I'd like to get the insight of wiser minds than my own. IDeally, I am looking to implement the BRRRR strategy, or some similar variation. Both properties are single families located in memphis TN Below is a brief summary of each individual property:

Property 1: $39,200 3 bedroom 2 bath approximately 944 sq ft. Built in 1925. Zip code 38122. Tenant in place until Feb 2021 currently rented for $550. I saw a video walk through of the property. It's by no means a luxury property, but liveable. At the most it looks like it would need new cabinets, paint job and other small cosmetic items. Realtor basically described it as an ugly house that will provide immediate cash flow and could probably appraise for a price sufficient to pull out my initial capital without much work having to be done. My concern is will a house this old be a money pit and the fact that there's a tenant in place, how much rehab can i do.

Property 2 $50,000k 3 bedroom 1 bath approx 1200 sq ft. built 1958. zip code 38118. tenant vacating property at the end of the month. Comparable rents are approximately $750-850. Could possibly add a half bath. not sure have to get more details. Comp sales are between 60-70k. maybe higher if i can add the half bathroom. This property seems to be more of a traditional BRRRR in the sense that it would need more rehab work and I'd have to rent it out before i can refinance. My information on this property is limited since the realtor just brought it to me today.

I'd appreciate any insight or new perspective anyone could provide! I'm just brainstorming potential strategies. Thanks  everyone