Berclair
Working-class, voucher-friendly, distressed inventory available
Memphis, Tennessee · BRRRR
Memphis BRRRR works when you partner with the right local team and avoid the turnkey-operator markup. Distressed inventory + no state income tax + landlord-friendly law produce some of the strongest BRRRR economics in the country — for investors with boots on the ground.
Memphis has the deepest distressed inventory in the Southeast and a mature contractor + PM ecosystem. The BRRRR challenge here is sourcing: most Memphis investors buy turnkey-priced (already-rehabbed) properties at 10-15% above true ARV. Direct distressed acquisition + your own rehab management produces the real BRRRR math — but requires either local presence or a trusted partner.
Typical BRRRR deal in Memphis
Purchase price
$40-85k distressed acquisition
Monthly rent
$1,000-1,400 post-rehab
Cap rate
9-12% post-rehab
Rehab $25-50k. All-in $75-130k. ARV $115-160k. Refi at 75% LTV pulls $86-120k — recycles 80-95% of capital on clean executions.
Berclair
Working-class, voucher-friendly, distressed inventory available
Cooper-Young
Gentrifying — ARV upside, lower BRRRR haircut
Binghampton
Earlier gentrification cycle, lower entry, higher execution risk
Frayser
Deep distress, lowest entry, requires experienced PM
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