We studied over 360+ metropolitan statistical to identify the best single-family investment markets across the

U.S.Key factors in our analysis included:

  • Major regional employers and economic forecast
  • Strong market fundamentals related to home prices
  • Stable market appreciation
  • Rents relative to home values (the rent ratio)
  • Regional unemployment rates and employment trends
  • Home valuations relative to median incomes
  • Property tax rates and insurance
  • Weather and geographic factors (e.g. tornados, hurricanes, earthquakes, cold weather, flood zone, etc)

Ultimately, we found that Memphis offered a unique combination of several key factors that made it ideal for single-family real estate investment. These included stable market appreciation, strong gross rent multipliers, solid economic infrastructure, and quality weather relative to the rest of the nation.

The average Meridian property is a detached, single-family dwelling built post-1980 or sooner, with three bedrooms, two bathrooms, and a two-car garage.

Meridian utilizes local market expertise to locate SFR investment properties in neighborhoods and sub-markets that demonstrate a very specific quality, demographic, and long-term growth characteristics. We target homes in attractive neighborhoods that draw long-term, quality tenants who seek housing comparable to the median-priced home in a given area.

In addition to attracting quality tenants, our properties are also carefully selected for their long term cash flow investment potential.

Meridian investment properties are typically valued from $90,000 to $180,000. Our average market sales price for a Meridian property is $135,000.

A typical renovation covers the following areas:

  • Cosmetic appearance, inside and out
  • Structural integrity: framing, walls, and roof
  • Systems: electrical, plumbing, and HVAC
  • Painting, flooring, countertops and fixtures
  • Landscaping and outdoor structures

Following renovations, Meridian homes are usually valued from $90,000 to $180,000. The average Meridian market sales price is $140,000.

Meridian, one of its subsidiaries, or in some cases, a Meridian affiliated partner company in Memphis, owns our properties at point of sale. Properties are acquired all cash and are owned free and clear.Once a property is purchased from Meridian, the property is owned solely by the investor. Home ownership, along with clear title and full legal ownership, occurs at close of escrow.

Meridian Pacific Properties makes money only between our initial purchase price and the sale to the client, less the renovation and holding costs. Meridian also charges a processing fee that is included in the buyer’s closing costs. The fee is $495 for financed properties and $250 for cash purchases.Meridian Pacific Properties does not receive any referral fees from insurers, property management companies, lenders or any preferred vendor Meridian suggests to our clients.

Our properties range from $90- $140K. The most conservative investment (most stable returns) is made by purchasing a property all cash. In addition, some investors finance (obtain a loan) requiring 20% down plus closing costs. So the anticipated initial investment ranges from $20-$150K per property.
Clients can obtain financing from lenders recommended by Meridian Pacific Properties or through their own lenders. In order to qualify for a loan, investors must have high credit scores (680 is minimum; 740 will have the lowest loan fees), meet the debt-to-income ratio (DTI), and provide documentation to the lender to verify all of the numbers.
Most Meridian Pacific clients purchase three to four homes. Most banks allow individual investors to have 10 loans in their portfolio, including their primary residence. Generally lending and underwriting guidelines become more restrictive after the fourth loan.
Prior to closing, a homeowner’s insurance policy must be obtained by the buyer. Clients can either work with a preferred personal vendor or with one of Meridian’s preferred vendors in the Memphis area. Meridian has extensive experience with insurance companies in Memphis, and has provided alternative insurance options to many clients in the past.
In 2012, Meridian formed Meridian Property Management, a property management company created to serve our real estate investors. Meridian Property Management currently manages 450+ properties and publishes quarterly data to our investors on average vacancy, maintenance, and rates of return.

Vacancy is part of the investment property process. Meridian Pacific Properties models the vacancy at 6% per year as an average based on our property managers’ history of performance.Some tenants leave after the first year, some stay several years. Once a tenant leaves, the property management company will assess the state of the property, ensure the proper cleaning and maintenance has been done, re-evaluate the market rent, advertise the home, and put the next tenant(s) in place.

Meridian has modeled the investment over a ten-year hold period. As the free and clear owner, you may sell as your investment portfolio dictates. At that point, Meridian is happy to make recommendation on realtors, market conditions, contractors, or answer any questions you may have.

Defined, Internal Rate of Return (IRR) is a measure of the total return on investment that considers the timing and amount of annual cash flows, pay-down of the mortgage and net capital gains over the life of the investment. Expressed as a percentage, IRR is stated as an average per-year rate of return.IRR is an important calculation used in real estate to compare investments to each other. When investing in real estate, we are typically dealing with properties that provide cash flow streams. The IRR takes into account the benefit and timing of these cash flows and provides us with a measure of our investments performance. This is the best single metric for comparing the total return on an investment, real estate or otherwise.

Meridian Pacific Properties, Inc. was founded in 2006 by Jeffery King and Kevin Conlon, two former military members with over 40 years of combined professional experience in high technology. Since its inception, Meridian has successfully sold over 400 single family investment properties.
A typical Meridian client is an experienced professional in the U.S. or overseas looking for a passive investment that is an alternative to the stock market or traditional IRA holdings. Our clients have an average net worth of $500K – $1 million+. Most of our investors are conservative Baby Boomers who are nearing retirement and seek a steady income stream as well as capital preservation of their accumulated nest egg. Our clients purchase on average 3-4 homes from Meridian and are looking to supplement their investment portfolio with a high returning, stable assets.
Apart from the processing fee, there is not a commission involved in a sale of a Meridian property. The homes sold by Meridian are “For Sale by Owner” and as such, there is no real estate agent that is representing either party, and, thus no commissions.