DSCR Rental Case Study
DSCR turnkey rental in Memphis: $92K purchase to $187/mo cash flow
Alex Rivera in Chicago has never visited Memphis. Using PocketSquad Marketplace heatmaps and the DSCR + Rehab Estimator tools, he negotiates a turnkey-leaning 3/1, runs conservative numbers, assembles a vetted local squad, and closes with a DSCR loan that cash-flows from month one — six weeks from first filter click to keys in hand.
Property snapshot
Binghampton brick cottage
- Address
- 1484 Faxon Avenue, Memphis, TN 38105 (illustrative)
- Market
- Memphis, TN — Binghampton submarket
- Property
- 3 bed / 1 bath single-family, 1,180 sq ft, built 1958
- Strategy
- DSCR acquisition + light value-add + long-term rental
Purchase
$92,000
Rehab budget
$14,500
Stabilized value
$128,000
Stabilized rent
$1,450/mo
DSCR (acq)
1.28
Monthly cash flow
$187
Filter for yield + liquidity in an unfamiliar market
Alex opens the Marketplace, sets Memphis ZIP filters for rent-to-price above 1.4% and list price under $110K. The Binghampton cottage surfaces at $98K with 35 days on market and recent comps showing renovated 3/1s renting $1,425–$1,475. Neighborhood Heatmap confirms B-tier rental demand with low vacancy history and stable logistics employment nearby.
He pastes the listing into Address Auto-Import, which seeds a draft in the rental yield calculator and pulls tax history + last sale data. Two Saved Scenarios from prior Memphis underwriting are cloned so expense and vacancy assumptions carry over automatically.
Asking price
$98,000
Days on market
35
Submarket rent yield
1.48%
Pressure-test every assumption before the offer
In the Rehab Estimator he scopes cosmetic refresh plus HVAC service and LVP throughout: $14,500 including 12% contingency. The DSCR calculator models $92K purchase at 20% down with 7.4% 30-year DSCR terms, 7% vacancy, $165 taxes, $95 insurance, 8% management. DSCR lands at 1.28 — safely above the 1.20 lender minimum even after stress tests.
Rental Yield calculator shows 11.9% cash-on-cash on the $22,400 cash-to-close after reserves. Deal Analyzer combines everything into a one-page summary Alex forwards to his DSCR lender for pre-approval confirmation.
Purchase (negotiated)
$92,000
Rehab + contingency
$14,500
Projected DSCR
1.28
Cash-on-cash
11.9%
Hire the operator and lender who will carry the asset
Alex filters the PocketSquad Network for Memphis property managers with investor reviews and <8% avg vacancy. He books a call with Mid-South Property Group (12 investor clients in the ZIP). The DSCR lender, Southern Portfolio Capital, is already in his shortlist from prior deals; he uploads docs directly in the platform workspace.
A local inspector is scheduled for the due-diligence window. All three are added to the deal pipeline card with roles and shared folders.
Squad members
3 vetted
Time to assemble
7 days
Close and stabilize without ever leaving Chicago
Closes at $92K with 20% down via Southern Portfolio bridge-to-DSCR. Rehab takes 19 days: contractor sends daily photos to the deal feed. One change order ($650 for extra subfloor) is logged, approved in-app, and instantly reflected in the live DSCR model.
Tenant placed in 12 days at full $1,450 rent with 18-month lease. First owner statement arrives in the portfolio dashboard showing net $187 after debt service, taxes, insurance, management, and $150/mo reserves.
Rehab actual
$13,900
Lease-up time
12 days
Monthly cash flow
$187
Outcome
Cash flow from day one, capital protected for the next deal
Six weeks from Marketplace filter to first rent deposit. Alex never flew to Memphis. Every number — purchase, scope, rent, DSCR, cash flow — was modeled in the same calculators, executed by the same vetted squad, and visible in one deal record.
The asset is now his second Memphis rental. Saved Scenarios for the next acquisition already import the realized expense and lease-up numbers from this deal.
Total cash invested
$22,400
Stabilized value
$128,000
Equity created (day 1)
$36,000
Monthly cash flow
$187
DSCR
1.28
Timeline
6 weeks
Next step
Model your own DSCR rental
Plug the same Memphis assumptions or your target market into the DSCR and Rental Yield calculators to see how the numbers move with different rents, rates, or rehab scopes.
Open the DSCR calculatorNext step
Filter Memphis deals
Use the exact Marketplace filters Alex used — rent-to-price, days on market, and submarket heat — to surface the next opportunity.
Browse MarketplaceNext step
Join PocketSquad
Save scenarios, message vetted Memphis operators, and track the full lifecycle in your own pipeline.
Create an accountThis case study uses a fictional buyer and a representative Charlotte address for illustration. Numbers are rounded to be mathematically consistent and reflect rules-of-thumb investors use to underwrite BRRRR deals — they are not a guarantee of outcome for any specific property.