Recently Funded Fix And Flip Refinance in Memphis, Tennessee.

Loan Scenario:

This fix and flip refinance features a detached two-unit property located in Memphis, Tennessee. Specifically, the property carries an as-is value of $79,256, paired with a $60,000 rehab budget. As a result, American Heritage Lending lent $108,750 in financing. Notably, the loan is a True Zero Point Loan, set on a 12-month interest-only term. Therefore, the financing carries a Loan-to-Cost (LTC) of 78.09% and a Loan-to-After Repair Value (LTARV) of 75.00%. Once finished, the property should reach an After Repair Value of $145,000. Also, the two-unit layout gives the investor added options across the rental and resale market.

The borrower is an experienced investor focused on a full reset of the two-unit asset. Because the deal is a refinance, this approach lets the borrower fund the rehab while holding the property. Also, the interest-only term gives room to manage costs across the build. As a result, the structure keeps monthly carrying costs low through the work.

First, the project begins with new flooring and subfloor repair. Then, the work moves to a full electrical system upgrade and new HVAC install. Next, the scope covers new windows throughout the property. Also, a new driveway adds to the exterior upgrades. Finally, the build wraps with fresh interior paint and trim work.

Memphis continues to draw steady investor interest, particularly across its older neighborhoods. As a result, a fully redone two-unit places the investor in a strong spot for the local market.

Overall, this deal shows how American Heritage Lending backs experienced investors with high-leverage refinance options. Specifically, the True Zero Point Loan keeps upfront costs low. As a result, the borrower can take on a full rehab while keeping cash on hand across the portfolio.