Memphis BRRRR 2026: My Newest Acquisition & Refined Breakdown

Market Trends, Hard Numbers, and the “Whitehaven Edge”

Let’s be real for a second. If you’ve been scrolling through Zillow or listening to real estate podcasts lately, you’ve probably heard the doom and gloom. “Rates are stuck,” “inventory is tight,” “cash flow is dead.”

Late last year, I was sitting on capital, terrified to pull the trigger. The numbers in my usual go-to suburbs like Bartlett, just weren’t penciling out. But I wasn’t ready to sit on the sidelines while inflation ate my cash. So, I went back to the drawing board—specifically, I went back to Whitehaven.

And I’m glad I did. We just wrapped up a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) that honestly surprised me. It wasn’t perfect—I’ll get to the scary electrical issue in a minute—but the cash-out check cleared yesterday, and the relief is real.

Here is the no-fluff breakdown of exactly how we found, funded, and finished this deal in the 38116 zip code.

The Hunt: Why I Went Back to Whitehaven

For a while, I ignored Whitehaven. I thought the appreciation train had left the station. But in late 2025, I noticed something interesting. While houses in Cordova were sitting on the market for 60+ days, decent 3-bedroom homes in Whitehaven were still moving, but the “fixer-uppers” were being ignored.

Everyone wants a turnkey solution right now because renovation costs are still a burden. That’s where the opportunity was.

The Deal: How We Actually Got It

I didn’t find this on the MLS. If it’s on the MLS in Memphis right now, it’s probably already bid up or has a hidden foundation issue.

The Source: We sent out old-school yellow letters (yes, they still work) to out-of-state owners who had owned their property for 10+ years.

The Seller: We found a guy in Ohio who inherited his mom’s house. He was tired of paying the lawn guy and worried about squatters. He just wanted out.

• Asking Price: $115,000
• My Offer: $90,000 (I knew the roof was shot)
• Settled At: $95,000

The “Oh Crap” Moment: During the inspection, we ran a sewer camera scope. Always, always do this in Memphis. We found a “belly” in the line under the driveway where water was pooling. I thought the deal was dead. But instead of walking, I asked the seller for a credit. He knocked $4,500 off the closing costs to cover it. Crisis averted.

The Reno: Dust, delays, and Decisions

The plan was simple: get in, make it durable, get out.

The Budget: $35,000 The Reality: $36,100

I’m actually proud we stayed this close to budget. Here is where the money went:

• Flooring: We ripped out the nasty carpet. In 2026, if you are putting carpet in a rental, you are just asking to replace it in two years. We went with LVP (Luxury Vinyl Plank) everywhere. It looks high-end but is practically indestructible.
• Kitchen: We didn’t replace the cabinets. They were solid wood, just ugly. A coat of white paint and new black hardware made them look brand new. We saved about $3k right there.
• The Surprise Expense: This is the part that hurt. The electrician called me on Day 3 and sent a picture of the panel. It was an old Federal Pacific brand—a major fire hazard. Insurance wouldn’t touch it. I had to shell out an unexpected $2,200 to swap the panel and fix the grounding.

The Numbers: The Part You Actually Care About

Okay, let’s open the books. Here is the raw math on the deal.

Acquisition & Holding:

• Purchase Price: $95,000
• Closing Costs: $2,500
• Rehab Costs: $36,100
• Holding Costs (Interest/Utilities): $4,350
• Total All-In Cost: ~$137,950

5. The Refinance: Did We Get Our Money Back?

This is the scary part. You finish the work, place a tenant (we got it rented for $1,495/mo in 10 days—boom!), and then pray the appraiser sees the value.

I met the appraiser at the property with a list of every single improvement we made. I literally handed him a paper that said “NEW ELECTRICAL PANEL” in bold. Do not let them guess.

• Target Value: $185,000
• Appraised Value: $190,000

I could breathe again.

The Cash Out: We did a DSCR loan (Debt Service Coverage Ratio) at 75% LTV.

Cash to Me: ~$14,000

New Loan: $142,500

Payoff Old Loan: ~$124,000

Closing Costs: ~$4,500

Frequently Asked Questions (FAQ)

Q: Is Memphis still a safe bet for investors in 2026? A: Honestly, yes, but you can’t just throw a dart at a map anymore. The “easy” money is gone. You have to pick neighborhoods with stable job anchors (like Whitehaven near FedEx or areas near the medical district). If the numbers work, the cash flow is still better here than 90% of the country.

Q: How did you find a contractor you could trust remotely? A: It wasn’t easy. I kissed a lot of frogs. I found my current crew by asking local property managers who they use for their own repairs. Property managers hate bad work because they have to deal with the tenant complaints, so their recommendations are usually gold.

Q: What is the “70% Rule,” and did you stick to it? A: The rule says you shouldn’t pay more than 70% of the After Repair Value (ARV) minus repairs.

• My Math: $190k (ARV) x 70% = $133k. Minus $36k repairs = Max purchase price of $97k.
• I bought it for $95k. So yes, I stuck to it! That buffer is what saved me when the electrical issue popped up.

Q: Why didn’t you just sell it (flip it) instead of renting? A: Taxes and wealth building. If I sold it, I’d pay short-term capital gains tax. By keeping it, I get the tax write-offs (depreciation), the monthly cash flow, and someone else paying down my debt. I’m playing the long game.

Q: Can I really do this with a full-time job? A: Absolutely. I have a 9-5. The key is having a team. I don’t lay floors; I hire the guy who lays floors. Your job is to find the money and find the deal. Let the pros handle the hammers.