Simple numbers and a simple plan for investment real estate that regular people can understand.
My wife and I work side by side to buy, remodel, and sell homes at a fair price to regular people who want to invest in their future. We specialize in turnkey rentals, and we take pride in giving working-class families a beautiful place to live.
How it works
Four steps, start to finish.
We buy a house that needs work
Distressed houses in Jackson with solid potential.
We fix it right
Roof, A/C, plumbing, electrical, floors, paint. The work that matters to tenants and to your return.
You see the numbers
Price, estimated rent, and yield, laid out clearly. Each house shows its own yield and cash flow.
You close, then rent it
You buy a finished house that's ready for a tenant on day one. Use your own property manager, or we'll point you to one we trust.
We don't just slap paint on a house that's falling apart.
The most important things we deal with are the things you can't see in pretty pictures. They don't grab attention in before-and-afters, but they make all the difference in the world on an investment.
Plumbing
We fix leaky pipes and make sure the plumbing works the way it should.
Electrical
Safe, updated electrical you don't have to worry about.
Heating & cooling
Dependable heat and AC.
Roof
A solid roof over your investment.
Appliances
We almost always put all-new appliances in every one of our turnkey rentals.
Buy one, then buy the next one
Many of our buyers finance with a DSCR (debt service coverage ratio) loan. Instead of qualifying you on your paycheck, the lender looks at whether the house's rent covers the loan payment.
How it works
You buy the house from us with cash. Then you go to our DSCR lending partner, the house is appraised, and you can often borrow approximately 75% of the appraised value. Use that cash to buy the next house, and repeat. You can start building a portfolio with roughly enough cash for one home.
Regular 30-year loan
Example only — your numbers will vary.
Step 1: Buy & refinance
Step 2: Monthly
Loan paid down
30-year loan, paid like a 15
Example only — your numbers will vary.
Step 1: Buy & refinance
Step 2: Monthly
Loan paid down
Your required payment stays $577, so you can stop paying extra in a lean month.
Check your loan for prepayment penalties before paying extra.
Six ways this house pays you
Example only — your numbers will vary.
Equity capture
You buy under appraisal, so you start with equity the day you close. See below for how that equity grows with 5% appreciation.
Principal paydown
Every month, the tenant's rent pays your loan down.
Regular 30-year loan. Pay it like a 15 and it is paid off by year 15.
Appreciation at 5%
Based on recent Jackson growth (about 5% a year over the last 5 years). Not a promise.
Cash flow
That is after vacancy, repairs, management, a capex reserve, taxes and insurance.
Tax savings
Depreciation is a paper expense. It can shelter the rental's cash flow from income tax.
Talk to your CPA. Depreciation may be recaptured when you sell.
Your money keeps working
The refinance gives back about $68,000 of your cash. It's a loan, so it isn't taxed as income. Put it into the next house, and that house does all of this again. One stack of cash can build a portfolio.
All six work at the same time, from the same house.
Two more benefits
Rent growth. Rents tend to rise over time while your loan payment stays the same, so the gap widens.
Inflation. You repay a fixed loan with dollars that are worth less every year.
Your equity over time (with 5% appreciation)
House value at 5% a year, minus what you still owe on the $75,000 loan at 8.5%.
| House value | 30-year loan | 30-yr paid like a 15 | |
|---|---|---|---|
| Year 5 | $127,628 | $56,010 | $68,060 |
| Year 10 | $162,889 | $96,438 | $126,891 |
| Year 15 | $207,893 | $149,331 | $207,893 paid off |
| Year 20 | $265,330 | $218,818 | $265,330 paid off |
| Year 30 | $432,194 | $432,194 paid off | $432,194 paid off |
Get your cash back out
With a DSCR loan, buyers can often pull most or all of their money back out right after closing. That leaves little or no cash tied up in the house, so you can move on to the next one and build a portfolio.
No three-month wait
Most lenders want you to own and rent a house for three months before they'll refinance it. We work with lenders who don't require that waiting period.
Based on the house, not your income
Some lenders don't look at your income or debt-to-income ratio. They lend based on the value and the rent of the house.
Lenders who know Jackson
Many lenders won't touch a house under $100,000. We have relationships with lenders who know this market and lend on these homes.
Loan terms depend on the lender and the property.
What we're working on now
Come watch the work get done
Demo days, surprises behind the walls, and what things really cost. We show the problems along with the progress.
Questions? Get in touch.
Tell us what you're looking for, and we'll tell you directly whether we have a fit.
If a number isn't solid, we'll say so. If a house isn't a fit for you, we'll say that too.