- Remaining ten homes of a successful Build-For-Rent (BFR) community
- Opportunity to form a relationship with an experienced BFR developer and builder
- Additional homes in the area from this builder to increase portfolio size
- Top-rated school system
- Close to downtown Memphis and the employment centers
- Homes are either completed or will be completed during 1Q2019
- 5.65% projected stabilized year 1 projected cap rate
- New homes will need fewer repairs and maintenance and capital improvements for a number of years
- Average home size of 2,422 square feet
This Build for Rent (BFR) investment portfolio allows a buyer to buy Cass A step-up homes from an experienced BFR builder and developer in the exciting Memphis MSA. The homes are constructed to a high quality with beautiful and durable granite countertops, hardwood flooring, and stainless steel appliances. A few of the homes have been completed and the remaining homes will be completed by March 2019. The homes are located in Olive Branch, Mississippi which has top-rated schools as reported by Great Schools. Residents will be able to enjoy the quiet neighborhood while being only about 30 minutes from downtown Memphis and the employment centers.
The Memphis MSA has been experiencing strong employment growth. Part of this growth is because Memphis is “America’s Distribution Center” and is home to the headquarters of FedEx and the second largest cargo airport, being fueled by the growth of e-commerce. Memphis is also home to first-class medical facilities, including the University of Tennessee medical school, St. Jude’s Children’s Research Hospital, and others. John Burns Real Estate Consulting ranks Memphis #6 on its Current Metro Ranking Matrix. This is based on the MSA obtaining a 2.3% YOY employment growth as of September 2018 and having strong projected rent growth and projected home value growth. The MSA also has a good median household income of approximately $53,500 with a low rent to income ratio of 21.5%. There were 495,596 households with an average of 2.66 people in the MSA in 2017. The estimated 2017 population for the MSA was 1,346,626 people, approximately 52.5% of whom rent.
This investment portfolio is comprised of ten homes. Eight of the homes have 4-bedrooms and are an average of 2,427 square feet with an average monthly rent of $1,900. The remaining two homes are 5-bedroom homes with an average of 2,401 square feet and a monthly rent of $2,050. This portfolio will allow an investor to efficiently control ongoing capital expenditures because the homes will be new, built to a high standard, and be under warranty.
Contact Jeff Cline at SVN | SFRhub Advisors
SVN | SFRhub Advisors, LLC
2400 E. Arizona Biltmore Circle
Phoenix, AZ 85016