New Construction vs Rehab Memphis Rental Property ROI
This episode features a high-energy roundtable with Brett Bernard, Marissa Miller, Jeff McNett, Nick Gibson, and Jo Garner—Memphis’ go-to mortgage pro and seasoned investor. Together, they dive deep into Memphis rental property investing, comparing the pros and cons of new construction versus rehab properties. With actual property examples, financing strategies, and clear investment math, this episode is packed with everything new and seasoned investors need to make smart moves in the Memphis real estate market.
When it comes to real estate investment in Memphis, one question dominates: should you buy rehabbed properties or go for new construction? Brett and the crew walk through real examples like 4566 Rangeline and 3418 Rose Creek, comparing actual returns, upfront costs, and long-term strategies. A typical rehab property may cost $130K and generate $1,300 in rent with around $35K in out-of-pocket costs, delivering a 14% ROI. Meanwhile, new construction properties might require $45K upfront, offer lower maintenance, and bring in rents upwards of $1,900, still hitting a 12–13% return. The team lays out each scenario so investors can understand where their money goes and how fast it can grow.
They also dig into the real-world calculation of cash-on-cash return—no fluff, no California seminar formulas. If you invest $35K and bring in $400/month after expenses, you’re hitting a 14% return, and that’s before factoring in appreciation. Brett and Jeff explain how investors can build reserves from monthly cash flow, so expenses don’t come out of pocket. Jo Garner adds insight on lending and down payment assistance programs, reminding listeners that working with a local expert who understands the Memphis market can make all the difference. Whether you’re flipping or holding, the approach is clear: use rental income to build wealth, one smart property at a time.
Beyond the numbers, the episode zooms out to talk about cultural barriers to homeownership in Memphis. With over 50% of the city renting, many residents don’t see buying a home as possible due to bad credit or misinformation. The crew discusses how real estate investors can be part of the solution while still profiting. There’s even a discussion on land bank legislation and how unlocking thousands of county-owned lots could help build affordable housing and revive entire neighborhoods. By understanding the market dynamics and the people within it, investors can make more than just returns—they can make impact.
In this New Construction vs Rehab Memphis Rental Property ROI episode:
- Rehab Properties ROI Breakdown – Rehabbed properties in areas like Frayser offer strong cash flow and lower entry costs. A $130K home with $35K out of pocket can return 14% annually. Brett and Jeff walk through every cost, including taxes, insurance, and mortgage payments, so investors understand their true ROI without the hype. These properties often hit or exceed the 1% rule, making them a strong choice for both local and out-of-town investors.
- New Construction Cash Flow Advantage – While more expensive upfront, new builds offer fewer surprises. With minimal maintenance, builder warranties, and increased rent potential, they yield 11–13% returns right out the gate. The team explains how new construction fits into a long-term buy-and-hold strategy and why these homes often appreciate faster, making them a solid choice for investors focused on stability and lower risk.
- Building Wealth With Memphis Real Estate – Start with one property and scale smart. Over a decade, a $30K investment can turn into a portfolio worth $2 million or more. The panel breaks down the steps: using rent to pay down mortgages, leveraging equity, and buying more homes without dipping back into your own savings. It’s the long game that works—and Memphis makes it possible with affordable housing, high rent-to-price ratios, and a booming rental market.
- Cultural Barriers to Homeownership – Memphis has a large population of lifelong renters—many of whom are capable of homeownership but believe it’s out of reach. The team discusses how poor credit, lack of financial education, and cultural norms play a role. They explore how local programs, education, and better outreach can change the narrative—and how investors can help lead that shift while still profiting.
- Memphis Market Stability and Growth – Unlike volatile markets like California or Florida, Memphis remains stable. It saw a modest dip in 2008 and recovered quickly, thanks to its affordability and renter-heavy market. The podcast explains how this stability makes Memphis ideal for long-term investments, offering predictability in both appreciation and cash flow—something few cities can offer.
This episode brings real numbers, local expertise, and practical advice together for a full-spectrum look at investing in Memphis rental property. Whether you’re buying a fully rehabbed home in Frayser or stepping into a new build in Raleigh, the return potential is high, the entry costs are reasonable, and the long-term upside is undeniable. Brett and the team explain exactly how a modest $30K investment today can transform into multi-million dollar equity through strategic financing, tenant cash flow, and property appreciation.
If you’re serious about building wealth through real estate, this episode gives you the tools and the mindset to do it the Memphis way. From using rent to pay down your mortgage, to setting aside cash flow for repairs, to leveraging paid-off properties to buy more—all of it is broken down here. Plus, you’ll hear the human side of real estate, from first-time investors who “get it” to city leaders working on big-picture solutions. This is more than an investing podcast—it’s a blueprint for long-term financial freedom.
Jo Garner:
Send a text message or call (901) 482-0354. You can find Jo Garner online at: https://jogarner.com.
About 5 O’Clock Somewhere Real Estate Investor Podcast
5 O’Clock Somewhere Real Estate Podcast throws out the script, brings common sense back to real estate, and hosts casual conversations about the only market that matters—Memphis. We’re not quoting experts from California—we live and breathe Memphis investing every day. This is your go-to source for real strategies, real talk, and real Memphis rental property opportunities. If you’re an investor looking to get in or grow your portfolio, we’re here to help you do it smarter.
If you’d like to join the conversation, participate in an upcoming episode, or just get investment advice, call or text us at 901-692-7401 or send us a message.
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