Recently Funded DSCR Loan In Memphis, Tennessee

Loan Scenario:

A newer investor reached out to American Heritage Lending to pull cash out of a single-family rental he owned in Memphis, Tennessee, and put that equity to work on his next opportunity. Even without a long investment history, he qualified cleanly on the property’s rental income alone — our DSCR loan looks at whether the asset pays for itself, and at a 1.313 debt-service coverage ratio, this one comfortably did. Against an appraised value of $175,000, we structured a $122,500 cash-out refinance at a conservative 70% loan-to-value, giving him liquidity while preserving a strong equity cushion.

Memphis has long been a favorite among cash-flow investors, and for good reason. Affordable entry prices, a logistics-driven economy anchored by FedEx and one of the nation’s busiest cargo hubs, and steady rental demand across neighborhoods like Cooper-Young, Berclair, and Whitehaven combine to produce rent-to-value ratios that are increasingly hard to find elsewhere. It’s a market where a single well-chosen rental can meaningfully move an investor’s cash flow.

By keeping the leverage conservative and underwriting to the income, we handed this borrower a clean 30-year loan and a pool of capital to redeploy — no personal income documentation required. If you own a rental in Tennessee and want to tap its equity, we can help you get financing moving.

Similar Recently Funded Case Studies: DSCR Loan in Millington, TN  •  DSCR Loan in Memphis, TN  •  DSCR Loan in Nashville, TN

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