Spencer Buys Houses
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Real estate investing isn’t always about making a big profit at the closing table. Sometimes, the real opportunity comes from buying the right property, structuring the financing correctly, and turning that property into a long-term income-producing asset.
That’s exactly what we recently accomplished with a property on Misty Crest Cove in Memphis, Tennessee.
Within a short period, our team was buying one property, selling another, and completing a refinance on this investment. It’s a good example of how the right purchase price and a solid strategy can create long-term cash flow.
The refinance allowed us to return the private lender's capital while keeping the property as a long-term investment. That creates an opportunity to continue using available capital for future acquisitions instead of having all of it sitting inside one property.
For investors, this is one of the biggest advantages of finding properties with enough value and cash-flow potential to support a long-term strategy.
That meant we weren’t simply refinancing an empty house and hoping the numbers would work later. We already had a tenant and an income stream in place.
After accounting for expenses such as the mortgage, taxes, insurance, and reserves, the property is generating approximately $923 per month in net cash flow.
That adds up to more than $11,000 in projected annual cash flow if the property maintains that performance.
It’s about finding properties where the numbers make sense and creating multiple ways to build value.
Sometimes that means renovating a property and selling it. Other times, it means holding the property as a rental. In certain situations, owner financing or refinancing can provide another path to make the numbers work.
The strategy can vary from property to property, but the objective remains the same: buy intelligently, create value, protect capital, and build sustainable cash flow.
We buy houses in Memphis and surrounding communities in a variety of conditions and situations. Whether you have an inherited property, rental house, fixer-upper, vacant home, or simply want a straightforward sale, we can review the property and discuss your options.
You don’t have to spend months preparing a property before finding out what it may be worth.
Call or Text: (901) 979-9848
Website: SpencerBuysHouses.com
Whether you’re an investor looking for your next opportunity or a homeowner looking for a simple way to sell, our goal is to make the process straightforward.
Spencer Shadrach has been buying homes across Memphis, Shelby County, and the Mid-South for more than 10 years. Spencer Buys Houses focuses on helping homeowners and property owners find straightforward solutions for selling houses, including properties that may need repairs or have complicated circumstances.
That’s exactly what we recently accomplished with a property on Misty Crest Cove in Memphis, Tennessee.
Within a short period, our team was buying one property, selling another, and completing a refinance on this investment. It’s a good example of how the right purchase price and a solid strategy can create long-term cash flow.
The Deal at a Glance
Here’s how the numbers came together:- Location: Misty Crest Cove, Memphis, TN 38141
- Purchase Price: $140,000
- Refinance Amount: $156,000
- Loan Term: 30 years
- Interest Rate: 6.8%
- Estimated Property Value: Approximately $210,000
- Net Monthly Cash Flow: Approximately $923
Why the Refinance Was Important
Instead of keeping our initial investment tied up in the property, we completed a refinance for $156,000.The refinance allowed us to return the private lender's capital while keeping the property as a long-term investment. That creates an opportunity to continue using available capital for future acquisitions instead of having all of it sitting inside one property.
For investors, this is one of the biggest advantages of finding properties with enough value and cash-flow potential to support a long-term strategy.
The Property Was Already Producing Income
One of the best parts of this deal was that the property was already leased before we completed the refinance.That meant we weren’t simply refinancing an empty house and hoping the numbers would work later. We already had a tenant and an income stream in place.
After accounting for expenses such as the mortgage, taxes, insurance, and reserves, the property is generating approximately $923 per month in net cash flow.
That adds up to more than $11,000 in projected annual cash flow if the property maintains that performance.
The Bigger Picture: Buy, Improve, Refinance, Repeat
For us, the goal isn’t simply to buy as many houses as possible.It’s about finding properties where the numbers make sense and creating multiple ways to build value.
Sometimes that means renovating a property and selling it. Other times, it means holding the property as a rental. In certain situations, owner financing or refinancing can provide another path to make the numbers work.
The strategy can vary from property to property, but the objective remains the same: buy intelligently, create value, protect capital, and build sustainable cash flow.
Looking to Sell a Memphis Property?
Not every homeowner wants to renovate, refinance, or become a landlord. If you own a Memphis property and would rather sell it without dealing with repairs, tenants, showings, or a long traditional listing process, Spencer Buys Houses may be able to help.We buy houses in Memphis and surrounding communities in a variety of conditions and situations. Whether you have an inherited property, rental house, fixer-upper, vacant home, or simply want a straightforward sale, we can review the property and discuss your options.
You don’t have to spend months preparing a property before finding out what it may be worth.
Ready to Talk About Your Property?
If you’re considering selling a house in Memphis, contact Spencer Buys Houses to discuss your situation.Call or Text: (901) 979-9848
Website: SpencerBuysHouses.com
Whether you’re an investor looking for your next opportunity or a homeowner looking for a simple way to sell, our goal is to make the process straightforward.
Frequently Asked Questions
What is a BRRRR strategy in real estate?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The strategy involves purchasing a property, improving it, renting it, refinancing it, and potentially using the recovered capital toward another investment.How did this Memphis property generate $923 in monthly cash flow?
The property was purchased for $140,000 and refinanced at $156,000. After leasing the property and accounting for mortgage payments, taxes, insurance, and reserves, the projected net cash flow was approximately $923 per month.Do all rental properties produce positive cash flow?
No. Cash flow depends on the purchase price, financing terms, rent, taxes, insurance, maintenance, vacancy, and other operating expenses. Every property needs to be evaluated individually.Can homeowners sell properties that need repairs?
Yes. Spencer Buys Houses considers properties in different conditions, including homes that need significant repairs or updating.Do I need to renovate my Memphis house before selling?
Not necessarily. If you’re considering a cash sale, you can discuss the property's current condition and your situation with the buyer before deciding whether repairs make financial sense.About the Author
Spencer Shadrach
Spencer Shadrach, Founder of Spencer Buys Houses | Memphis, TNSpencer Shadrach has been buying homes across Memphis, Shelby County, and the Mid-South for more than 10 years. Spencer Buys Houses focuses on helping homeowners and property owners find straightforward solutions for selling houses, including properties that may need repairs or have complicated circumstances.