Affordable new construction investment opportunity. This 4 bed / 2 bath, 1,250 sq ft property (built 2025) is currently under construction and available for early pre-sale purchase. With an asking price of $175,000 and estimated MHA rent of $1,650 to $1,750 per month, this property offers strong cash-flow potential in a growing Memphis rental market, ideal for long-term buy-and-hold investors seeking low-maintenance returns.
Investment Summary
Purchase Price: $175,000
Estimated Market Value: $175,000
Down Payment (20%): $34,000
Closing Costs: $3,000
Total Cash Investment: $37,000
Estimated Monthly Rent: $1,650 to $1,750
Annual Gross Rent: $19,800 to $21,000
Cash Flow Analysis
Gross Annual Income: $21,000
Vacancy (3%): -$630
Effective Gross Income: $20,370
Operating Expenses:
Property Management (8%): $1,680
Taxes: $1,500
Insurance: $1,275
Maintenance (3%): $630
Total Operating Expenses: $5,085
Net Operating Income (NOI): $15,285
Annual Debt Service: $11,692
Estimated Annual Cash Flow: $3,593
Financing Example
Loan Amount: $136,000 (80% LTV)
Down Payment: $34,000 (20%)
Interest Rate: 7.75%
Term: 30 years
Monthly Mortgage (P&I): $974
Annual Debt Service: $11,692
Cash-on-Cash Return: 9.7% to 11.0%
ROI Breakdown
Cash-on-Cash ROI (Rental Income Only): 9.7% to 11.0%
With Depreciation Benefits: 14% to 18%
With Loan Paydown: 18% to 22%
With Appreciation Assumption: 25% to 35%+
Property Highlights
4 Bedrooms / 2 Bathrooms, 1,250 sq ft
New construction (2025 build)
Maintenance-free siding
LVT flooring throughout
Carport included
1-year builder warranty
Strong rental demand area supported by MHA program
Ideal for long-term buy-and-hold strategy