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Investment Opportunity: New Construction Rental Property in Memphis, TN
Address: 3424 Madewell Dr, Memphis TN
Price: $165,000
Monthly Rent: $1,700
Property Overview:
Discover an outstanding investment opportunity with this newly constructed 4-bedroom, 2-bathroom rental property in a thriving Memphis neighborhood. Designed with modern amenities and energy-efficient features, this property is perfect for investors seeking a dependable and high-return asset.
Key Features:
- New Construction: This property features the latest in construction quality, energy efficiency, and contemporary design.
- Spacious and Functional Layout: The home offers an open floor plan with ample living space, ideal for attracting quality tenants.
- Turnkey Investment: Currently rented at $1,700 per month, this property delivers immediate rental income.
- Low Operating Costs: With annual property taxes of $1,550, insurance at $1,000, and an 8% property management fee, operating expenses are minimized.
Financial Highlights:
- Purchase Price: $165,000
- Down Payment (20%): $33,000
- Loan Amount: $132,000 at 7% interest
- Monthly Mortgage Payment: $878.20
- Annual Gross Rent Income: $20,400
- Net Operating Income (NOI): $16,218
- Annual Cash Flow: $5,679.60
- Cash on Cash Return: 15.65%
- Appreciation Potential: With an estimated annual appreciation rate of 3%, the property is expected to appreciate by $4,950 annually.
- Tax Benefits: Benefit from an annual depreciation deduction of $6,000, resulting in tax savings of approximately $1,440 per year.
Investment Summary:
This property offers a robust investment with a cash on cash return of 15.65% and a total ROI of 33.26% when considering appreciation and depreciation. The new construction status ensures minimal maintenance and strong tenant appeal, making it a hassle-free investment in a growing market.
Location Highlights:
- Proximity to Amenities: Conveniently located near schools, shopping centers, and public transportation.
- Growth Area: Memphis is experiencing steady economic growth, enhancing the demand for rental properties.
Contact us at Homekeybuilders.com
