Memphis is one of the country's best-known single-family rental markets. Brick ranch homes built from the 1950s to the 1980s sell at prices that let rent cover the payment, and investors from all over the country own them, often five, ten or twenty at a time.
In short: LendingStreet's blanket portfolio loans let Memphis investors combine 5 or more rentals, each with 1 to 8 units, under one loan with one closing and one payment. The loan qualifies on the portfolio's combined cash flow, with portfolio pricing and release provisions for selling individual homes. For Memphis investors, a blanket also solves the minimum-loan problem: homes priced below about $190,000 that cannot support a $150,000 loan alone can be financed together.
A typical Memphis portfolio is built from three-bedroom brick ranches in neighborhoods like Raleigh, Berclair, Parkway Village, Hickory Hill, Frayser and Whitehaven, where prices are lower and rents are steady. Investors with more capital add homes in Cordova, Bartlett, Arlington and Lakeland, where prices and rents are higher and tenants often stay longer. Midtown adds older duplexes and small multi-unit buildings.
Many Memphis investors also own across the state line in DeSoto County, Mississippi, in Southaven, Olive Branch and Horn Lake, which are part of the same metro and rental market.
Our loans start at $150,000. A $140,000 Berclair house cannot carry that on its own, and many Memphis rentals are priced in that range. A blanket loan combines them with higher-priced homes so the total loan clears the minimum easily.
It also replaces a long list of small loans. Investors who bought turnkey homes one at a time often have different servicers, payment dates and maturities. One loan simplifies the books and one payment replaces many.
A blanket compares total rent against the total payment for all properties. Lower-priced homes in Raleigh or Parkway Village often have strong rent relative to price but higher turnover and repair costs. Suburban homes in Cordova and Bartlett may run a little thinner on paper but rent to longer-term tenants. A blanket lets the whole portfolio qualify together.
Lenders still review each property's condition, leases and market rent. Vacant or rundown homes need a plan before they go in.
Property management matters here too. Many Memphis portfolios are run by third-party managers, and their rent rolls, delinquency reports and repair histories help show that the income is real. Bring the last few months of statements along with the leases.
This example is illustrative and not a quote. An investor refinances eight rentals worth $1,510,000 combined, with total rent of $12,600 a month, property taxes of about $1,925 a month and insurance of about $1,200.
At 70% of combined value, the blanket loan is $1,057,000. Estimated principal and interest is about $7,391, for a total monthly payment of about $10,516. Portfolio DSCR is about 1.20x.
Five of these homes would be too small for a standalone $150,000 loan at 70% LTV. Inside the blanket, they qualify as part of the portfolio. The Southaven home shows a Mississippi property included; multi-state portfolios are possible on some programs.
| Property | Value | Monthly rent | Monthly taxes |
|---|---|---|---|
| Cordova single-family | $215,000 | $1,750 | $280 |
| Bartlett single-family | $235,000 | $1,800 | $265 |
| Raleigh single-family | $145,000 | $1,300 | $200 |
| Hickory Hill single-family | $160,000 | $1,350 | $220 |
| Parkway Village single-family | $135,000 | $1,200 | $190 |
| Berclair single-family | $140,000 | $1,250 | $195 |
| Midtown duplex | $280,000 | $2,300 | $385 |
| Southaven single-family (MS) | $200,000 | $1,650 | $190 |
| Total | $1,510,000 | $12,600 | $1,925 |
Tennessee assesses residential property at a 25% assessment ratio. Homes inside Memphis pay both city and Shelby County taxes, while homes in Bartlett, Germantown, Collierville or unincorporated areas pay county taxes plus any suburban city tax. That is why two similar homes a few miles apart can carry very different bills.
Shelby County reappraises on a regular cycle, and a reappraisal can lift values across a portfolio at once. Use current bills and leave room above 1.0x.
Insurance is a real cost in Memphis. Carriers look at roof age, wiring, plumbing, vacancy and neighborhood claims history, and premiums have risen. Severe storms and the occasional tornado affect the region, and the area sits near the New Madrid seismic zone, so some owners consider earthquake coverage. Get current declarations for every property before you apply.
Older ranches may have aging HVAC, cast-iron drain lines or foundation movement in clay soils. A portfolio with good maintenance records is easier to underwrite.
Release provisions let you sell one home without refinancing the rest. The loan documents set how much of the sale pays down the balance, and the remaining homes must keep supporting the loan. Release terms vary by program.
Tennessee charges a transfer tax on recorded deeds, so selling one home has closing costs on top of the release amount. If you plan to sell several homes over the next few years, compare a blanket with separate loans.
Think about which homes you are likely to sell. Releasing a low-priced Raleigh house has little effect on the portfolio, while selling the Midtown duplex or a Bartlett home removes more rent. Run the numbers on the remaining portfolio before you list.
Each property must be a 1 to 8 unit investment property. The minimum credit score is 620, LLC borrowers are standard and no W-2s or tax returns are required.
Send your property schedule through the form below or call (877) 298-1001. Out-of-state owners are common in Memphis, and we work with investors wherever they live. Include your property manager's contact details and recent owner statements. We will calculate portfolio DSCR and compare it with your current loans.
If you are still building toward five properties, separate DSCR loans on homes priced above about $190,000 can come first, with a blanket later once the portfolio is large enough.
Five or more investment properties, each with 1 to 8 units.
Yes. That is a key benefit in Memphis. The blanket as a whole must meet the $150,000 minimum.
On some programs, yes. Multi-state portfolios are possible.
Yes. Many Memphis rental owners live elsewhere. The loan qualifies on the properties' cash flow.
Total monthly rent divided by the total monthly payment, including principal, interest, taxes and insurance.
The release provisions set how much of the sale pays down the loan. The other homes stay in the blanket.
No. Blanket loans qualify on the portfolio's cash flow.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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