From Two Houses to 5,800 Doors: How Mid South Homebuyers Pioneered Turnkey Investing—and What It Means for Today’s Investors
If you’ve ever wondered how a couple of rentals can turn into a durable, scaled investing engine, this one’s for you.
In 2002, Terry Kerr sold two houses to a grade-school friend who had the cash and the appetite—but not the time. The profits were slim, but the lightbulb was bright: busy professionals would pay for speed, certainty, and a done-for-you path to rental income. That insight became Mid South Homebuyers, a company that’s since bought, renovated, sold, and managed more than 5,700 single-family homes across Tennessee and Arkansas, and Texas, where, as Terry says, cash flow is king.
Fourteen years ago, Matthew Vanhorn joined at the front leasing desk when the firm managed just 215 homes. He helped grow operations to ~5,800 doors, spending 13 years across property management, client services, and acquisitions before becoming Director of Sales—while still overseeing management. That resident-first vantage point is key: happy residents drive stable returns.
- Watch the full Episode here: https://youtu.be/9BbI9fbHEdE
- Or listen on your favorite platform of choice here: https://www.betweentwodoors.com/episodes/
The Origin: When Time Became the Scarce Asset
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2002–2003: Terry stops swinging the hammer himself and starts hiring (and learning to hire well).
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A weekend of seven offers unexpectedly turns into five accepted contracts—a trial by fire that accelerates systems, crews, and process.
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The result: a repeatable model that serves busy professionals who want cash-flowing assets without the grind.
What “Turnkey” Means Here (Beyond a Fresh Renovation)
Mid South’s version of turnkey goes beyond the basics:
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Vertical integration at scale: a ~45,000 sq. ft. warehouse functions like a private Home Depot—standardized materials, parts on hand, and faster repairs for residents. That means fewer delays, shorter down-time, and consistent finish quality—benefits that cascade into investor returns.
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One team, end-to-end: the same outfit that renovates the home also manages it. Alignment matters.
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Guided financing & closing: investors are introduced to vetted mortgage brokers, closing attorneys, and insurance providers—every touchpoint designed to lower friction. See their Available Properties page and investor education hub for process and calculators. midsouthhomebuyers.com+1
Why These Markets? Affordability + Cash Flow
Memphis, TN and Little Rock, AR show up again and again in affordability data—good for residents (lower living costs) and investors (rents relative to price).
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Memphis ranked #1 most affordable large city for a family of four in 2025, per SmartAsset’s analysis. That affordability supports resident stability—the secret sauce behind lower turnover and steadier income. SmartAsset+1
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Little Rock’s overall cost of living trends below the U.S. average (housing ~22% under national averages in recent assessments), supporting rental demand and sustainable payment ratios. Payscale+2OysterLink+2
DFW/North Texas is a growth story with massive infrastructure investment. The Dallas North Tollway continues pushing north toward the Collin/Grayson line, with TxDOT studying extensions to US-75 near Denison—a clear signal of population and job-center expansion in the corridor. NTTA+1
New Construction Joins the Playbook
Inventory that pencils as a classic buy-renovate-rent will always be in the mix. But supply is finite, so Mid South has been supplementing with new construction—purpose-built homes that meet rental demand and align neatly with investor financing (including DSCR loans).
Financing the Portfolio: DSCR, Conventional, and VA—Where Each Fits
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DSCR (Debt Service Coverage Ratio) loans: qualify primarily on the property’s income, not the borrower’s personal DTI. Lenders generally look for DSCR ≥ 1.0–1.20x (NOI divided by total debt service). This is why rents, vacancy, and expenses matter so much in underwriting. JPMorgan Chase+1
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Conventional investment loans: great for borrowers who want rate/fee efficiency and can meet standard income/asset guidelines.
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VA (for eligible buyers): house-hack potential—owner-occupy one unit in a 1–4 unit property and leverage rental income under VA rules (with professional property management often required when units are rented).
Pro tip from Matthew’s own journey: using owner-occupied loans to move every 12–18 months (FHA 3.5% down or 5% conventional at the time) built a small portfolio faster, then equity compounding did the rest.
The Resident-First Advantage (And Why It Affects Your Returns)
Years of property management taught one non-negotiable: resident experience drives returns. Faster maintenance from an on-hand parts inventory, respectful service, and consistent home quality lead to longer average stays—Matthew cites ~four years—which reduces the #1 hidden cost in landlording: turnover.
Getting Started (and What to Expect)
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Short waitlist: investors typically see deals after a brief queue; browse “Available Properties” now to preview what’s coming.
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Monthly investor tours: on-the-ground education—warehouse, crews, and projects at multiple rehab stages (check the website for upcoming dates).
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Remote-friendly: ~95% of clients never visit in person, but in-person tours are incentivized and encouraged for learning. midsouthhomebuyers.com+1
Contact Mid South Homebuyers
Website: midsouthhomebuyers.com • Email: invest@midsouthhomebuyers.com • Phone: (901) 306-9009 midsouthhomebuyers.com
Connect with Matthew Vanhorn
Director of Sales, Mid South Homebuyers • (901) 338-7621 • LinkedIn: Mid South Homebuyers • Email: matthew@midsouthbestrentals.com midsouthhomebuyers.com
Key Takeaways for Busy Investors
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Time is your scarcest asset. Turnkey done right trades your time for a vetted pipeline and aligned operators.
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Markets matter. Favor places where affordability supports durable rents relative to purchase price. Memphis/Little Rock check those boxes today. SmartAsset+1
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Financing follows the numbers. DSCR thrives when NOI is predictable and expenses are disciplined; conventional and VA have powerful roles too. JPMorgan Chase+1
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Operations create outcomes. Vertical integration (materials, maintenance, management) shortens downtime and extends resident stays—the quiet compounders of return.
wherever you prefer):
Connect with Mid South Homebuyers
Website: https://midsouthhomebuyers.com
General Email: invest@midsouthhomebuyers.com
Phone: (901) 306-9009
Contact Matthew Vanhorn — Director of Sales
Direct Phone: (901) 338-7621
Email: matthew@midsouthbestrentals.com
LinkedIn: https://www.linkedin.com/company/midsouth-homebuyers/
Want help mapping the right financing to your next turnkey purchase?
I can model DSCR vs. conventional vs. VA scenarios side-by-side so you know which path best aligns with your cash-flow and equity goals.
About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask "right brain" questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.
Listen to more episodes at: https://www.betweentwodoors.com
Sponsored by:
Premier Lending, Inc.
https://www.natecarver.com
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Licensed by the Department of Financial Protection and Innovation (DFPI). Equal Housing Opportunity.
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