Investment Opportunity: Updated Rental Property in Memphis, TN
Address: 3931 Ajanders Dr, Memphis TN 38127
Price: $125,000
Monthly Rent: $1,250
cash to cash return 17.07%
Property Overview:
Discover a lucrative investment opportunity with this updated 3-bedroom, 2-bathroom rental property in a desirable Memphis neighborhood. Featuring modern upgrades and a functional layout, this home is perfect for investors seeking a stable and profitable asset.
Key Features:
- Updated Home: Recently updated with modern finishes, including new flooring, updated kitchen and bathrooms, and contemporary fixtures.
- Spacious and Functional Layout: The property offers a generous floor plan with ample living space, ideal for attracting quality tenants.
- Turnkey Investment: Currently rented at $1,250 per month, this property delivers immediate rental income.
- Low Operating Costs: With annual property taxes of $850, insurance at $1,000, and an 8% property management fee, operating expenses are kept low.
Financial Highlights:
- Purchase Price: $125,000
- Down Payment (20%): $25,000
- Loan Amount: $100,000 at 7% interest
- Monthly Mortgage Payment: $665.30
- Annual Gross Rent Income: $15,000
- Net Operating Income (NOI): $11,950
- Annual Cash Flow: $3,966.40
- Cash on Cash Return: 14.42%
- Appreciation Potential: With an estimated annual appreciation rate of 3%, the property is expected to appreciate by $3,750 annually.
- Tax Benefits: Enjoy an annual depreciation deduction of $4,545.45, resulting in tax savings of approximately $1,090.91 per year.
Investment Summary:
This property offers a robust investment with a cash on cash return of 14.42% and a total ROI of 32.03% when factoring in appreciation and depreciation. The updated condition ensures minimal maintenance and strong tenant appeal, making it a hassle-free investment in a growing market.