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Project Overview

4471 Kimball

Memphis, TN 38117

Above Picture Copyrighted.

1060 Brookfield Rd Suite 100· Memphis, TN 38119

(O) 901-410-5452 · (F) 901-205-0629 · www.MemphisTurnkey.com· www.LittleRockTurnkey.com

August 3, 2016

To our current and prospective clients:

Enclosed in this packet you will find various pieces of information about our latest

offering in Memphis, TN including pictures, scope of work, hard cost and projected

revenue. With any of our projects, our goals are to provide a property that will maximize

our clients cash flow by performing a thorough renovation that will reduce maintenance

and vacancy. We do this by addressing in our renovation deferred maintenance items,

adding upgrades such as vinyl plank flooring and ceramic tile that are more durable and

adding in several upgrades to make the home standout above other competing rental

properties in the area. As landlords ourselves, we have learned that the best way to

maximize profits starts with the renovation and continues on with a strong management

team, which we have accomplished through our in house property management company.

If you have any questions, please feel free to reach out to us at 901-410-5452. We

would be happy to provide you with any amount of information we can to make you feel

comfortable with your investment decision.

Thanks,

Alex Craig

President

Memphis Turnkey Properties

Little Rock Turnkey Properties

General Renovation Notes

Permits Pulled: HVAC

Start Date: July 22, 2016

Projected Finish Date: August 26, 2016

General spec along with specific details custom to this house. The list below are repairs and

upgrades that are designed to reduce maintenance and vacancy. Level of renovation for this

home is considered retail ready for the area at the estimated value of $85,000

Prior to buyers inspection, all utilities must be active. Existing HVAC & hot water tank we are

keeping are active, have been serviced and working. Water Cut off at the end of each day.

The Scope of Work while specific may change depending on unforeseen circumstances

discovered during the renovation.

Items such as laying and refinishing floors, ceramic tile install, painting, carpentry, landscaping

and other simple trades will be performed by in house crews. Electrical, plumbing and HVAC

work will be subbed out to our licensed vendors.

Cost Drivers:

These are items that work fine and do not need to be replaced, but are on the backend of their

lifespan or will improve the look of the house which maximizes cash flow through maintenance

and vacancy reduction, but reduces equity.

Furnace appears to have 5 to 10 years lifespan left, but sits in a bedroom closet. We feel a

new furnace in the attic will increase the rentability of the house: $1,300

Kitchen cabinets are old, but could be restored. Our experience is the updates for this area

help in quick rentals at the top of market rent: $2,000

Low lying tree branches do not effect the home, but being close to the house, tree

branches will likely fall on the house during big storms, thus creating increased cost

during vacancy for PM to clean off and tenant may not be physically capable of getting

on a roof. It will also improve curb appeal: $1,000

One of the sheds could be left, but it is beyond its lifespan and leaving it would increase

maintenance down the road: $500

Total Cost of maintenance and vacancy reducing upgrades: $4,300

4471 Kimball Scope of Work

Roof

New Roof with 1” Drip Edge. DJ will need approval for over repairs in excess of $250

25 Yr Weathered Grey GAF shingle

Inspect ceiling joist

General

New blinds

Refinish hardwood floors with the exception of 1 room which will need carpet

Closet rods in all closets

Interior Paint

Unnecessary wall plates removed, i.e. old phone jacks

Interior door open and close smoothly

Kitchen and hall smoke detector along with kitchen Fire Extinguisher installed

Eliminate old in wall heaters

Plumbing Spec

Check all valves, P-traps and DWV pipe for leaks (replace supply lines, valves and p-traps as necessary).

Keep existing if they function properly

Check shower drains and area drains for proper installation and drainage

Inspect plumbing in crawl space and attic

Check toilet for property installation. Repair and replace as necessary

Replacement toilet if needed (HD # 340995)

Repair & replace exterior hose bibs as necessary

Check WMOB for property function and drain fall and venting

Check DWV system for plumbing back up (run all fixtures simultaneously for long period of time)

H2O Tank age 2006

Electrical Spec

All outlets work and verified through tester

No open grounds/all new outlets and switches

Check electrical outlet box

Weather heads checked and replaced/repaired as necessary

All interior and exterior outlets/switches have ivory cover plates

Open junction boxes closed

All interior/exterior lights working

Proper Breaker Amps in box for reciprocating item

HVAC Spec

Remove old Furnace and store

New HVAC system

Condensate line checked for clearance

Exterior lines insulated

Ducts not smashed

AC’s exterior lines insulated

AC cage installed

Exterior

All windows open and lock, check for cracks

Security Doors seem to be ok – replace as needed

Paint trim and shutters (black)

Pressure wash walkway to the door

Repair soffit and siding

All exterior lights working

Spec Front of House light

Bring up canopy of trees in front yard where hanging low over driveway

Front planters boxed pressure washed

Seal crack on front patio

Build fence on East side of house between neighbors property line and house. Approx. 5 ft.

Exterior Back

Demo shed 1

Build a trench or French drain around addition since dirt is touching siding

Landscaping ($125)

Kill any weeds in walkway/driveway

Bushes in planter

Build bed on West side

No bed on East side of house

Crawl Space and Attic

Supply lines insulated

Attic clean

Attic door & attic in general insulated well

Hallway

Small Spec Light (HD# 287958)

Carport/Bonus Area

Rebuild garage with new joist and rafters. Goal is to pitch roof enough so that we do not have to use flat

roof

Den/Dining

Spec light in dining area

Spec Fan

Hall bath

Total gut

New toilet seat installed

Tub ok

Ceramic tile floor and shower with mosaic accent and single handle valve

New Vanity combo

Spec light

Spec shower head (HD# 725532)

Spec faucet (HD # 247368)

Kitchen & Area off Kitchen

Ceramic tile floor

New finished cabinets with brush nickel hardware

Spec brush nickel light 2 pack (can use other like from Fredericks)

New vent a hood

Spec faucet (HD # 709463)

New Surplus Warehouse countertops

Spec white kitchen fan (HD# 754470)

Spec black dishwasher

Bed 2 & 3

44” Fan

See if Closet door in Bed 2 (Front bed closest to street) fits bathroom door. That way, all doors on the

outside of rooms match

Remove furnace and store. New Furnace in attic

Master Bed

44” Fan

Before Pictures: https://app.box.com/v/4471Kimball

After Pictures

1060 Brookfield Rd

Memphis, TN 38119

901.620.6787 (O)

901.205.0629 (F)

Property Address

4471 Kimball, Memphis, TN

Rent Data

Projected Rent: $825 to $850

Closest in House Comp: 4614 Sea Isle is $850, rented July 2016

Area Overview

This property is located on the edge of Colonial Acres, a desirable area for younger individuals to

purchase first homes and millennials to rent. This has been a solid East Memphis area for decades in

Memphis and values maintained well during the downturn. Rents increase the further North in the

neighborhood and values expediently grow North of Poplar Ave. Values and rents slightly decrease South

of Willow Rd and drop even further crossing over I-240. Easy access to 240 here and the East Memphis

business hub corridor of Poplar Ave from Perkins to Kirby Rd. Plenty to do in the area as East Memphis

is known more for local flavor then chain establishments.

Marketing Plan

Heavy focus online with high res pictures upon completion of the renovation and descriptive marketing.

Currently 75% of our leads come from online; the other 25% are general neighborhood drive through and

calling the for rent sign. We utilize inside customer service for call in and a property management hotline

# that rings our leasing agents.

Online Marketing Copy

Lovely 3 bed 1 bath home located in Colonial Acres area of East Memphis, this home is a must see with

the multiple upgrades. The exterior home has great curb appeal and inside has updates you will love. The

living room and all bedrooms have designer ceiling fans. The home features mostly refurbished hardwood

floors. The bathroom has been redone with ceramic tile tub/shower with mosaic accent piece and ceramic

tile flooring, along with a new vanity. The kitchen will have new cabinets, ceramic tile and a new

countertop. The fenced in yard is perfect for small pets and children. Call today! We have an A+ Rating

with the BBB that is earned from taking care of the individuals that live within our homes.

38117 Colonial Acres 2016 Only Data Collection (#4)

Avg. Credit score: 727

Avg. Rent: $928

Avg. Income: $5,689

Data represents only tenant moves in for 2016 and may not be representative of the entire portfolio managed by CB Properties for this

respective zip code. Accumulate of past data is a work in progress.

“Better Properties, Better Areas, Better Investments”

All Memphis & Little Rock Turnkey Properties come with a maintenance guarantee of 90 days after the purchase date

listed on the closing settlement statement. If a tenant is not in place at time of closing, the 90 day warranty would begin

after tenant occupancy as listed by the 1st day on the tenant lease. Memphis Turnkey will also guarantee Heating and

Air system to be functioning properly for 180 days after the date on the closing settlement statement. This 90 day

warranty only includes maintenance issues within the 4 walls of the house. This warranty would exclude but not limited

to decks, fences, sewer lines, roofs, irrigation systems, retaining walls, free standing lighting fixtures in the yard and brick

structures such as patios.

Property inspections are not always successful in finding all the flaws with a property as these inspections are done

typically while the home is vacant. Such flaws that are present may only surface when a tenant is living in a house

cycling and running simultaneous items within the major systems of the house. The 90 day guarantee is designed to find

these flaws that were missed during renovation and property inspection. Depending on when the property was bought,

it may be impossible to test the entire heating and air system. For example, if a property was bought in January, it

would be impossible to test the AC for property function. The 180 day guarantee is designed to give our investor piece of

mind that the heating and air system is functioning properly.

Because the 90 day warranty only includes within the 4 walls of the house, it is strongly encouraged that an inspection of

the plumbing system by a licensed plumber to run a camera down the sewer line to test for blockage.

Certain items are excluded from the 90/180 day warranty. These items include:

Damage done due to tenant negligence

Vandalism/Theft

Acts of God

Force Majeure

Power Surges

Appliances not installed by Memphis Turnkey

Pilot lighting of Furnace

Vermin

Property Address:_______________________________________________________

Buyer:________________________________________________________________

Seller:_________________________________________________________________

Date:__________________________________________________________________

Memphis Turnkey Properties · 1060 Brookfield Rd. Suite 100 · Memphis, TN 38119

(O) 901-410-5452 · (F) 901-205-0629 · www.MemphisTurnkey.com

Dear Investor,

As you know, we are constantly developing new techniques and ideas for maximizing the

returns on our properties. One of our largest expenses is insurance, and thus we have

worked with a local broker, Insight Risk Management, to put together a program that will

afford all of our clients the best possible coverage at the most competitive rates. By

aggregating all of our insurance purchasing with a single company, we have been able to

leverage the volume to get better pricing than can be achieved by any one investor.

This program is tailored specifically for our rental properties and has the following

coverages:

1. Replacement cost coverage so that the insurance company is obligated to replace

the property, subject to the deductible, without any allowance for depreciation or

similar limitations

2. Limits of $90 a square foot, which should be appropriate under most

circumstances, though you should review your own home to ensure this is

sufficient

3. Lost rents of $12,000 a year should a large loss occur

4. $1,000 deductible without any other charges such as depreciation or coinsurance

5. $1,000,000 of general liability coverage per location, thus providing separate

limits for each house

6. Standard general liability wording without any exclusions for assault, battery,

sexual abuse or animals

7. No coverage for contents, so you are not paying for any contents that you do not

own

8. 60 day vacancy clause

9. “A” rated carrier

A typical house costs about 33% less on this program than with other carriers, and no

individual underwriting is required.

If you would like to get a quote for coverage, please contact the administrator of the

program, Mandy Roberts, at mroberts@irmllc.com or +1 901 202 8676 or you may

contact Pat Ashford at pashford@irmllc.com or +1 901 761 3100. They would be happy

to provide you with quotes or answer any other questions that you may have.

We have had great success with this program and hope you will take advantage of it.

Sincerely

Alex Craig

President

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