Memphis offers lower entry price points than Nashville, with value-add fourplexes, 5 to 10 unit buildings, and mixed-use corners where cash flow math often works at smaller loan sizes.
Talk through a propertyShelby County investors often target affordable single-family rentals, duplex and fourplex value add, and modest 6 to 10 unit apartments along major corridors. Price points here are typically well below Nashville, which changes leverage targets and how you size DSCR minimums.
Capituro underwrites Memphis properties on program splits by unit count: four units or fewer on residential DSCR, five to ten on small multifamily, eleven plus on apartment DSCR. Mixed-use with retail ground floors routes to Commercial DSCR when commercial income leads the story.
Whitehaven, Raleigh, Frayser, and suburban Shelby County offer 1,200 to 1,800 square foot rentals often purchased between $120K and $250K. Loan sizing may need higher leverage to reach DSCR minimums of $300K on residential programs.
Midtown, Cooper-Young, and older corridors contain duplex and fourplex inventory common for BRRRR strategies. Six to ten unit buildings appear along Poplar, Union, and Lamar corridors and fit Apartment DSCR with portfolio-style rent roll review.
Retail ground floors with residential above appear on Broad Avenue, Cooper-Young, and highway frontage. Commercial-led mixed use fits Commercial DSCR. Pure apartment buildings route by unit count on multifamily DSCR.
Interest-only for up to the full term on an apartment building, often for more cash out.
Program detailsStabilized small apartments along major Memphis corridors.
Program detailsPull equity after stabilization on value-add residential and small multifamily.
Program detailsCommercial DSCR for retail, office, warehouse, daycare, self storage, mixed use, automotive, light industrial, and assisted living property. Purchase, rate-and-term refinance, and cash out when leases and NOI support the request.
Program detailsEntry rentals, duplexes, and fourplex value-add exits.
Program detailsPurchase prices may be modest while DSCR minimums start at $300K residential and $500K on small multifamily. Leverage and property count may need adjustment.
Pre-1970 housing often needs capex reserves reflected in NOI or repair credits at appraisal.
Memphis STR regulations differ from Nashville and other Tennessee metros. Confirm local rules before underwriting income on short-term rental assumptions.
