Spencer Buys Houses
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Despite market fears, we found cash flow in Whitehaven with a disciplined BRRRR. This detailed case study breaks down the exact numbers, a surprise electrical fix, and how we pulled $14k out at refinance.
The Strategy: Targeting Overlooked Value
The key was shifting focus from turn-key suburbs to solid, older homes in stable areas. We targeted out-of-state owners via direct mail, finding a motivated seller in Ohio who inherited a property and just wanted out. Persistence and a smart inspection that uncovered a sewer line issue led to a great purchase price of $95,000.
The Renovation: Budget, Surprises, and Smart Choices
Our plan was durability on a budget. We allocated $35,000 and finished at $36,100. Smart choices like painting existing cabinets and using Luxury Vinyl Plank (LVP) flooring kept costs down. The big surprise was a $2,200 electrical panel replacement—a non-negotiable safety fix that protected our investment.
The Financials: The Numbers That Made It Work
The true test of a BRRRR is the refinance. After renting the property for $1,495/month in just 10 days, the appraisal came in at $190,000. By carefully presenting our improvements, we secured a loan that allowed us to pull out approximately $14,000 in cash while keeping the asset.
Key Takeaways for Memphis Investors
Hashtags:
#MemphisBRRRR #RealEstateInvesting #PropertyInvestment #BRRRRStrategy #WhitehavenMemphis #CashFlow #RealEstateNumbers #InvestorTips #MemphisRealEstate
A Real-World BRRRR Success in Memphis
While many investors hesitated in late 2025, we went back to basics in Memphis' Whitehaven neighborhood (38116). The result? A successful BRRRR deal that proves cash flow is still achievable with the right strategy. Here's the honest breakdown.The Strategy: Targeting Overlooked Value
The key was shifting focus from turn-key suburbs to solid, older homes in stable areas. We targeted out-of-state owners via direct mail, finding a motivated seller in Ohio who inherited a property and just wanted out. Persistence and a smart inspection that uncovered a sewer line issue led to a great purchase price of $95,000.
The Renovation: Budget, Surprises, and Smart Choices
Our plan was durability on a budget. We allocated $35,000 and finished at $36,100. Smart choices like painting existing cabinets and using Luxury Vinyl Plank (LVP) flooring kept costs down. The big surprise was a $2,200 electrical panel replacement—a non-negotiable safety fix that protected our investment.
The Financials: The Numbers That Made It Work
The true test of a BRRRR is the refinance. After renting the property for $1,495/month in just 10 days, the appraisal came in at $190,000. By carefully presenting our improvements, we secured a loan that allowed us to pull out approximately $14,000 in cash while keeping the asset.
Key Takeaways for Memphis Investors
- Focus on Fundamentals: Whitehaven offers stable rental demand, especially near major employers.
- Inspect Thoroughly: Always scope sewer lines in older Memphis homes.
- Build a Reliable Team: Trusted contractors and property managers are worth their weight in gold.
- Stick to the Rules: Adhering to the 70% Rule (ARV x 70% - repairs) provided the buffer needed for unexpected costs.
Hashtags:
#MemphisBRRRR #RealEstateInvesting #PropertyInvestment #BRRRRStrategy #WhitehavenMemphis #CashFlow #RealEstateNumbers #InvestorTips #MemphisRealEstate