Turnkey Properties · 1060 Brookfield Rd · Memphis, TN 38117 www.MemphisTurnkey.com

Offering Summary 2864 Kenneth St

Memphis, TN 38128

1060 Brookfield Rd Suite 100· Memphis, TN 38119 (O) 901-410-5452 · (F) 901-205-0629 · www.MemphisTurnkey.com· www.LittleRockTurnkey.com

Date

To our current and prospective clients:

Enclosed in this packet you will find various pieces of information about our latest offering in Memphis, TN. Our goal as a Turnkey Provider is to provide an asset that will maximize our clients cash flow by doing a thorough renovation that will reduce maintenance and vacancy. We do this by addressing 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 know through personal experience 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

10/12/17 2864 Kenneth Street, Memphis TN 38128

The Offering

Area Highlights• Quite Neighborhood with only 3 entrances all from the North • Established neighborhood • Close proximity to I-40• Downtown / Midtown in 25 , Airport 25 minutes• 3,832 Commercial Properties within 3 miles• Solid track record with Prop Mgmt of >35 Day vacancy

Stars represent homes in the area under management through CB Properties

Population Demographics*• 80% of Single Family Homes are Owner Occupant • Avg Income: $45,570 (MF in the area pushing down that #. We estimate

$80,000 + based on similar area without MF to push down income)• Avg homes built in the neighborhood is 1966

Property Picture Link:

*Population demographics data taken from MAAR Data (Memphis Area Assoc Realtors)

This 3 bedroom 2 bath home was built in 1966 and has a sq ft of 1,707. This is one of our favorite areas for single family rents in the $1,000 + rent neighborhoods of Memphis. Our in house management company has a good presence and track record of success. We call this the Raleigh-Bartlett areas as it is about 2 miles down Stage Rd to Bartlett. Although our data shows avg household income of $45,570, that income is being pushed down my a multi--family complex to the Southeast. 2 areas area within 1.5 miles without MF in its sample features an avg income of $70,000 & $100,000. The floor plans in these areas feature separate living rooms and dinings rooms, which provides additional living space tenants routinely look for in this area. Our rental comps are based on other homes we manage in the area. Owner Occupants make up the overwhelming majority of single family homes.

Pics Coming by 10/23/17

Comparable Three Up Report

Subject Comparable 1 Comparable 2 Comparable 3

Property Photo

Address 2864 Kenneth StMemphis, TN 38128

5257 Longwood DrMemphis, TN 38134

5159 Dunnellon AveMemphis, TN 38134

2893 Boulder Creek CvMemphis, TN 38134

Distance to Subject - 1.01 mi 0.86 mi 1.39 mi

MAAR Subdivision Golden Acres Blk B-1 Stage Park Estates Blk C Bartlett Meadows Blk A Stage Road

Map 735B 735B 735B 735B

Sale Date 09/15/2017 08/10/2017 08/25/2017 08/10/2017

Sale Type Foreclosure Sale Normal Sale Normal Sale Normal Sale

Sale Price $65,000 $117,900 $107,000 $115,000

Seller Concessions - ($3,600.00) ($4,000.00) -

Adjusted Sale Price $65,000 $114,300 $103,000 $115,000

Mortgage % & Type 138PO 94CV 98FH 95TF

Source Apr MLS Apr MLS

Effective Date 12/94 08/17 08/17 08/17

SqFt 1707 1946 1624 1593

$/SF $38.00 $59.00 $63.00 $72.00

Stories 1 1 1 1

Total Rooms 7 8 6 9

Bedrooms 3 4 3 3

Baths (full.half) 2.0 2.0 2.0 2.0

Parking C2A G2A G2A C2A

Construction Brick/Wood Composition Brick Brick Brick/Wood Composition

Condition C4 -Average Condition C4 -Average Condition

Year Built 1966 1969 1972 1996

Acres 0.29 0.29 0.3 0.28

Central Air Yes Yes Yes Yes

Pool No No No No

Heat Gas Forced Gas Forced

Fireplace 1 1 1 1

Min Sale Price: $107,000Max Sale Price: $117,900

Median Sale Price: $115,000

Min Sqft: 1,593Max Sqft: 1,946Avg Sqft: 1,721

3 ComparablesAvg Sale Price: $113,300

Avg $/SF: $66

COPYRIGHT © 2017 COURTHOUSE RETRIEVAL SYSTEM. ALL RIGHTS RESERVED.Information Deemed Reliable But Not Guaranteed.

Map

COPYRIGHT © 2017 COURTHOUSE RETRIEVAL SYSTEM. ALL RIGHTS RESERVED.Information Deemed Reliable But Not Guaranteed.

3 up Report, cont.

2864 Kenneth SCOPE OF WORK

Roof Replace rear roof Repair decking 25 yr Royal Sovereign Gray Weathered Stain Guard 3-Tab Shingles

General Spec Replace Blinds as Necessary Closet rods in all closets Interior 3 color Paint with focus on no paint bleeds or paint over of outlets or hinges Interior door open and close smoothly Kitchen and hall smoke detector along with kitchen Fire Extinguisher installed CO2 alarm installed Check insulation around all exterior doors Strike plates on doors Remove window bars Paint shed – only – no repairs Paint security doors black

Plumbing Spec Check all valves, P-traps and DWV pipe for leaks (replace supply lines, valves and p-traps as necessary). 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 Washer Box for property function and drain fall and venting Check DWV system for plumbing back up (run all fixtures simultaneously for long period of time) All plumbing pipes to be insulated When HWT is installed code has to be met Install extension pipe on temperature/pressure relief valve on HWT if needed HWT Rheem 2013 KEEP Laundry box. NEW

Electrical Spec All outlets work and verified through tester No open grounds/all new outlets and switches 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 Service box adjustment to meet code Service Panel. KEEP HVAC Spec Condensate line checked for clearance Ducts not smashed AC’s exterior lines insulated & cage installed AC. Carrier 1990. NEW with coil 3.5 ton Install new cage Furnace Goodman 2007 KEEP Exterior Spec All grounds cleaned of construction debris and no paint on foliage All windows open and lock, check for cracks Check Fences, Gates for Repairs. Replace as necessary. Security Doors rekeyed and repair Paint wood siding, trim and shutters Pressure wash walkway to the door Repair soffit and siding as needed All exterior lights working Mailbox (HD #438673) Landscaping Clean out beds Clean grounds Put mulch in tree bed Mow grass Trim from tree Plant 3 bushes on left bed Carport Spec ceiling light (HD# 1000640737) Keep motion light and change bulbs

Attic Attic door & attic in general insulated well Spec attic ladder (HD# 452801) Check insulation and add where needed Clean attic Front Porch Spec wall light (HD# 1000527751) x2 Pressure wash porch and walkway Enclosed rear patio Remove window unit 44” fan Spec (HD #1000725632) Install exterior door threshold Cap 2 wall lights Entry Spec BN (HD #353598) Remove shutter doors Floor OK Living No light Remove mirrors Clean and poly hardwood floor Den 52” Spec fan (HD #161642) Clean and poly hardwood floor Dining Room Spec Chandelier (HD #245200) Remove shutter doors Clean and poly hardwood floor

Kitchen & Area off Kitchen Paint cabinets New BN hardware Spec Vent-A-Hood (HD# 435140 Black) Spec faucet (HD# 1000000695) Sink OK New HD countertops Spec white kitchen fan (HD# 754470) Spec BN (HD #353598) Spec Dishwasher (HD #527767) Black Tile floor OK Paint paneling Install missing drawer facing Hallway Spec BN (HD #353598) Carpet Hall bath Spec light (4bulb HD# 108898) Spec shower head (HD# 725532) New 30” vanity Spec toilet seat (HD #634072) Spec faucet (HD #247368) Spec beveled Mirror (HD# 1001085210) Laundry Spec BN (HD #353598) Fix wall Floor OK Paint cabinets Master Bed 44” fan Spec (HD #1000725632) New carpet Install door from hall Master Bath Repair bottom section of shower walls (3 rows of tile) Spec light (4bulb HD# 108898) Spec shower head (HD# 725532) New shower light Spec toilet seat (HD #634072) New 30” vanity

Spec faucet (HD # 247368) Spec beveled Mirror (HD# 1001085210) Floor. Ok Bed 1 Spec BN (HD #353598) New carpet Bed 2 Spec BN (HD #353598) New carpet Storage Spec BN (HD #353598) Back Patio Spec wall light (HD# 1000527751 Keep motion light

“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 Products that fall under Manufactures warranty

Property Address:_______________________________________________________

Buyer:________________________________________________________________

Seller:_________________________________________________________________

Date:__________________________________________________________________

Date: 8/30/2017

Thank you for your interest in the CB Properties insurance program. It is written with Great American E

& S Insurance Company. Below is a summary of the program. If you have any questions, please feel free

to reach out to us. Becky Parker is the program administrator and can be reached at +1 901.202.8647 or

bparker@irmllc.com.

• This program was specifically designed for the rental houses that CB Properties manages and

has been tailored to fit their profile. Thus, in order to qualify for the program, your house must

presently be managed by them. If at any time this is not the case, we will have to arrange for an

alternative insurance arrangement for you.

• Perils: Special. This is the broadest coverage available, though it excludes earthquake and

flood.

• Valuation basis: Replacement cost. The policies replace any damaged building, without

subtracting any amounts for depreciation, provided you rebuild. The alternative valuation basis

is called Actual Cash Value, but this should be avoided if possible because it can leave an owner

without sufficient coverage to cover losses.

• Limit: We use the Shelby County Assessor to estimate the square footage of the building. If this

is incorrect, then please let us know. Buildings are insured for $90 a square foot.

• Contents: No contents coverage is typically provided as most owners have no contents in the

building.

• Business income: $12,000 loss of rents is included to protect against loss income due to an

insurable event.

• Sewer backup sublimit of $10,000 per location.

• Deductible: $2,500 per occurrence.

• Liability: each house has a dedicated $1mm limit per occurrence / $3mm in aggregate limit.

Thus, any liability losses that occur to other members of the program have no effect on the

limits that you will have dedicated to your home.

• Vacancy: There is no limitation. Theft and vandalism are covered.

• Additional insureds: the management company as well as any lenders is automatically included

as additional insureds on the policy at no extra charge.

• Coverage is contingent on CIS, Services receiving the premium, and no coverage is in force until

such premium has been received. Coverage will be effective from the Start Date and run 12

months. You will be contacted at renewal to see if you would like to renew coverage.

Based on the information that we have been provided, below is a quote for your investment property:

Property Address: 2864 Kenneth St, Memphis, TN 38128 Premium + Tax = $688.67

• Building limit: $156,510 (1739 sq ft)

• Business income limit: $12,000

• Deductible: $2,500 for all perils.

• General Liability limit: $1mm per occurrence / $3mm in aggregate.

To place coverage, we require the following:

• Owner’s written acceptance of quote (e-mail is acceptable)

• Full name, address, phone number and e-mail of the entity or person that owns, or will own, the

property

• Mortgage company or lender, if any, with contact information including address, account

number, and closing date if available

• Confirmation that CB Properties is the property manager for the foreseeable future

• Payment (provided at closing if this is a new purchase). This program only accepts checks or

Electronic Fund Transfers. Credit/debit card payments are not an option. An invoice will be

provided and all payments will go to CIS, Services.

If this property is a new purchase, we will send the certificate of coverage to the closing attorney who

will include the insurance premium as part of the closing costs, just let us know who will be doing the

closing. Otherwise, we will invoice you directly via e-mail.

PLEASE NOTE THIS QUOTE IS ONLY VALID FOR 30 DAYS FROM DATE OF QUOTE.

Thank you for the opportunity to provide you a quote.

Memphis-Little Rock Turnkey Properties · 1060 Brookfield Rd · Memphis, TN 38119 (O) 901-410-5452 · 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 as investors 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 theproperty, subject to the deductible, without any allowance for depreciation or similarlimitations

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 occur4. $2,500 deductible without any other charges such as depreciation or coinsurance5. $1,000,000 of general liability coverage per location, thus providing separate limits for

each house. There is a $3,000,000 aggregate.6. Standard general liability wording without any exclusions for assault, battery, sexual

abuse or animals7. No coverage for contents, so you are not paying for any contents that you do no town8. There is no vacancy limitation. Theft and vandalism is covered the entire term.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, Jake Kirk at (901) 202-8667 or by email at jkirk@irmllc.com He 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

Our You Tube Page

Click on the You Tube Link Above to Watch Past Property Videos &

Other Videos About Memphis Turnkey In General