Passive Impact: Real Estate Investing & Special Needs Housing
Welcome to "Passive Impact: Real Estate Investing & Special Needs Housing," where we explore how real estate investment can generate passive income while making a positive difference. Join host Sarah and Johnathon as they share strategies, success stories, and opportunities for investors looking to create financial stability and meaningful community impact. Also, Understand how you as a Real Estate investor make a positive difference in someone's life through Special Needs Housing for Adults with mild disabilities.
Passive Impact: Real Estate Investing & Special Needs Housing
Inside a Memphis Rehab: Strategy, Speed, and Structural Wins
We walk through the real rehab log for 187 W. McKeller in Memphis and show how disciplined sequencing turns a neglected home into a secure, rentable asset. The focus is structural health, speed to stabilize, and documenting work to build trust and value.
• scope and mission for a single-property deep dive
• anatomy of neglect and how moisture accelerates decay
• assessing profit potential and identifying good bones
• phase one stabilization: access, bathroom tear-out, plumbing exposure, roof rot removal
• logistics and debris management to keep velocity high
• phase two weathertight shell: siding and doors integration
• speed vs carrying costs and why sequence matters
• documentation as proof of work and market advantage
• community impact and Flowers and Associates’ approach
You can find out more about the book, its availability, and kind of the whole mission driving these projects over at passivimpact.net. That’s passivimpact.net. If you happen to own a distressed property yourself that maybe you’re thinking of selling, or if you’re just interested in learning more about their approach to real estate investing, you can actually contact the company directly. The number is 901 621 3544. Again, that’s 901-621-3544.
Welcome to the deep dive. Today we're uh taking a magnifying glass to something really specific. The whole life cycle of a single distressed property rehab. Right. We're not talking broad trends here. This is the real Nuss and Bolt using the actual project log from Flowers and Associates LLC for a house right here in Memphis.
SPEAKER_01:Exactly. And the mission today for you listening is really practical. We want to unpack the strategy, uh, the blueprint really for turning a property that's a liability into a genuine asset. We're tracking this one house, 187 W. McKeller, and watching how it goes from this, you know, forgotten, overgrown place to a valuable home.
SPEAKER_00:Yeah.
SPEAKER_01:This documentation is kind of a masterclass in prioritizing, you know, shows exactly where the effort and the money had to go first in a well, a pretty rapid full-scale renovation. Trevor Burrus, Jr.
SPEAKER_00:And this property is such a classic example, isn't it? A three-bedroom, one bath, single-family home, pretty standard.
SPEAKER_01:Trevor Burrus, Jr.: Standard size, yeah, standard potential, but wow, a huge challenge up front.
SPEAKER_00:Aaron Powell Totally. The goal ultimately is bringing it back to life, making it uh updated, safe, ready for maybe a first-time homeowner or you know, an investor looking for solid rental income.
SPEAKER_01:Aaron Powell A resurrection, like you said.
SPEAKER_00:Aaron Powell Okay. So let's really unpack this. Before we jump into the actual work, the uh stabilization blitz, we need to get a clear picture of what they were starting with. Definitely. Let's dive into like the anatomy of neglect here. What did 187 W. McKeller actually look like right before the hammers started swinging? And what were the financial implications of that condition?
SPEAKER_01:Aaron Powell Well, the initial picture it's one of uh pretty deep abandonment. And that's crucial because neglect it equals liability, right? It's not just about how it looks externally. I mean, the front yard was just completely overrun. The sources describe like dense weeds, wild vines literally choking the walkway, climbing all over the front of the house.
SPEAKER_00:And that kind of dense growth, it does more than just look bad, doesn't it? It holds moisture, attracts pests.
SPEAKER_01:Exactly.
SPEAKER_00:And it can hide serious problems, like right at the foundation.
SPEAKER_01:It absolutely can.
SPEAKER_00:The whole place just looked tired. Dated. But the details mention the weathered awning, the siding showing its age, maybe some damage.
SPEAKER_01:Yeah, and the sheer amount of vegetation actually blocking the path to the front door. That tells you something.
SPEAKER_00:Definitely.
SPEAKER_01:When you see plants touching the siding or getting near the roof line, you know, you're looking at uh accelerated decay, water intrusion, rot.
SPEAKER_00:Aaron Powell And you mentioned a small detail from the sources that really grounds it. The city of Memphis garbage bin still sitting out front.
SPEAKER_01:Yeah, that little detail, it's kind of poignant, isn't it? Shows it wasn't just empty, it was truly forgotten. Maybe for years.
SPEAKER_00:Aaron Powell So if the neglect is that bad, I mean, how do they even justify the investment? Is there really room for profit or is it just too far gone?
SPEAKER_01:Aaron Powell Oh, that's the million-dollar question, isn't it? Or well, maybe out of million in this case, but you get the idea. The property clearly needed substantial work, no question. Right. But they spotted what we call solid potential, good bones. You know, underneath the mess, the basic structure was sound. And it had these original elements worth saving. The simple Gebel roof line, some of that vintage trim, the metal porch railings, things that give it character. Trevor Burrus, Jr.
SPEAKER_00:So it wasn't a total teardown candidate.
SPEAKER_01:No, not at all. And what's fascinating here is understanding that difference between like cosmetic cleanup and real structural necessity. The financial play depends entirely on fixing those big ticket liabilities, the roof, maybe hidden water damage, while preserving that core structure. Trevor Burrus, Jr.
SPEAKER_00:Okay, so challenge established, house is choked by weeds, looks rough, but it's fundamentally okay underneath. So where on earth do you begin with something like that? Seems overwhelming.
SPEAKER_01:Aaron Powell You start with uh rapid risk mitigation. That seems to be the strategy here. When the project kicked off in July 2025, the clear goal was like stop the bleeding.
SPEAKER_00:Right.
SPEAKER_01:Stabilize the outside and the utilities first.
SPEAKER_00:Things that could cause catastrophic failure or, you know, big insurance headaches down the line.
SPEAKER_01:Precisely.
SPEAKER_00:And the log shows they didn't mess around. First entry, July 15th. Lawn cut and debris removal, basic site management.
SPEAKER_01:Aaron Powell Absolutely essential first step. You need safe access. You need to actually see what you're dealing with. Can't assess damage properly when it's hidden under a jungle.
SPEAKER_00:Right.
SPEAKER_01:But what's interesting is how fast they moved inside. The very next day, July 16th, the log shows bath floor tear out.
SPEAKER_00:Aaron Powell Hmm. Okay. Why jump straight to the bathroom floor? Not the living room, not even the roof yet.
SPEAKER_01:Aaron Powell Well it looks like strategic grouping. Bathrooms are, you know, notorious high moisture areas. Trevor Burrus, Jr.
SPEAKER_00:That's true. Leaks, humidity.
SPEAKER_01:Trevor Burrus Right. So tearing out that floor immediately lets them check the subfloor, the joist underneath for any water damage, rot, mold. It isolates a high-risk zone really early. Kind of a rapid initial gun and get the hazards out before tackling the big stuff.
SPEAKER_00:Aaron Powell Okay, that makes sense. Speaking of big stuff, the log then jumps pretty quickly to those critical structural things. By July 20th, we see plumbing pipes exposed for repair. Yep. And then boom, July 21st, the very next day, roofing takeoff and repair. That seems like a major job, right on the heels of the plumbing work.
SPEAKER_01:It does. And doing those almost back-to-back plumbing exposure than a full roofing job, it tells you something about their priorities and managing costs.
SPEAKER_00:Like what?
SPEAKER_01:Like getting a dry, secure envelope is paramount. Maybe exposing the plumbing first made sense if they suspected leaks contributing to roof issues. Or maybe it was just easier access before the roofing chaos started. But tackling the roof itself immediately after shows it was the top structural priority. Stop water getting in.
SPEAKER_00:And the documentation here is specific, isn't it? It mentions tearing out and removing dry rotted wood. That's not just replacing a few shingles.
SPEAKER_01:Oh, absolutely not. That's a huge distinction. Dry rot means the actual wood structure, the decking supports, the fascia, rafters, maybe has failed because of long-term moisture. So much bigger deal. Much bigger. Removing it is critical to stop the rot spreading. And frankly, to prevent the roof from potentially collapsing later. It definitely shifts this from a quick cosmetic flip to a deep structural rehab. That impacts everything cost, timeline, future insurability, lending.
SPEAKER_00:Wow. Okay. So they're tackling plumbing, fixing major structural rot in the roof. That's generating a ton of debris, right?
SPEAKER_01:You bet. Old roofing materials, rotted wood, the stuff in the bathroom tear out.
SPEAKER_00:And the log reflects that. We see dumpster delivery on July 24th.
SPEAKER_01:Necessary logistics.
SPEAKER_00:Followed by a big clean out and cleanup on July 25th.
SPEAKER_01:That sequence shows really efficient site management. You can't work safely or effectively in a mess. They're clearing debris almost as fast as they created to keep the project moving. Velocity is key.
SPEAKER_00:Right. And then wrapping up this first intensive phase, just before the end of July, on the 27th, there's another entry. Flooring, tear out repair. This sounds different from the bathroom one earlier.
SPEAKER_01:Yeah, that sounds like tackling the main living areas, taking out old, maybe damaged flooring. The repair part suggests they might be fixing subfloor issues as they go, getting everything prepped for new flooring later.
SPEAKER_00:So in basically two weeks.
SPEAKER_01:Pretty much.
SPEAKER_00:They went from this overgrown, abandoned liability to having the major structural issues addressed. Plumbing checked, roof secured, and the interior partially gutted and clean. That's intense.
SPEAKER_01:It is intense focused effort. They stabilize the essential structure incredibly quickly. Phase one, complete. Secure the envelope, remove immediate hazards.
SPEAKER_00:That speed, especially focused on the structure, really highlights the risk management strategy. Right. Okay, so now we shift gears into phase two. The documentation jumps to late August 2025. Right. And the focus changes dramatically, doesn't it? From tearing down and stabilizing to actually rebuilding the exterior shell. This is where it starts looking like a house again.
SPEAKER_01:Exactly. Phase two is all about achieving weather tightness.
SPEAKER_00:Yeah.
SPEAKER_01:This is a huge milestone in any builder rehab, especially for an investor.
SPEAKER_00:Why? Especially for an investor.
SPEAKER_01:Because once that exterior shell is tight roof on siding on doors and windows in, you've protected your structural investment. Now you can work on the inside without worrying about rain, snow, whatever. It also drastically reduces risks like vandalism or further weather damage.
SPEAKER_00:Makes sense. So the log shows two big items happening on the same day, August 29th. Installing siding the new skin of the house. And doors installation. Why tackle those two together? Seems like a busy day.
SPEAKER_01:Well, they're functionally linked. When you're putting up siding, which is your main weather barrier on the walls, you have to properly flash and seal around er every opening door's windows.
SPEAKER_00:Oh, okay.
SPEAKER_01:Doing the doors at the same time as the siding ensures you get that continuous seal, that proper integration. It's just good construction practice. Get the bones right, get the shell secure and weatherproof before you start spending money on the interior finishes.
SPEAKER_00:Aaron Ross Powell The stuff the eventual buyer or renter sees first, like kitchens and baths.
SPEAKER_01:Right. This shows that investor path.
SPEAKER_00:Mm-hmm.
SPEAKER_01:Secure the asset first, make it sound, then worry about the cosmetics.
SPEAKER_00:Aaron Powell So looking at this whole process, this detailed tracking, uh what does it really tell someone who's interested in this side of real estate?
SPEAKER_01:I think the biggest takeaway is that a successful rehab, especially on a distressed property, isn't just about you know swinging hammers and picking paint colors. It's about intense, really prioritized financial and physical effort. There's a clear sequence. Start outside, clean up, fix the absolute catastrophic failure points. First the roof rot, the plumbing issues, then move methodically to get that exterior shell secure and weather tight siding doors. Trevor Burrus, Jr.
SPEAKER_00:And the speed we saw in phase one.
SPEAKER_01:That speed is strategic. Every day that house sits unrepaired, the investor is paying carrying costs, interest, taxes, insurance on an asset that's not generating income. So moving fast, especially in those critical stabilization steps, minimizes that financial drag. And you know, this brings up a final thought, maybe something for you listeners to reflect on. Think about how this kind of detailed documentation like the phase log we just walked through does more than just track the project. Well, when this house eventually goes on the market or is listed for rent, having proof of the type of work done, the new roof, the dry rot removal, the plumbing repairs, the new siding, the transparency demonstrates serious value. It's not just newly updated, it's structurally sound, major systems addressed. Trevor Burrus, Jr.
SPEAKER_00:Right. It shows the quality goes deeper than the surface.
SPEAKER_01:Exactly. So how does that proof of work, that transparency, affect the marketability? How does it affect the perceived value compared to a flip where maybe corners were cut? I'd argue that documented quality is almost as valuable as the granite countertops everyone expects.
SPEAKER_00:That makes a lot of sense. Transparency builds trust, and trust definitely helps sell or rent a property faster, probably for a better price, too. Absolutely. You know, for those interested in the thinking behind projects like this, that mix of solid real estate investment, but also uh making a real impact in the community, especially around housing. Yeah. We've actually talked quite a bit with Robert Flowers on this show before. He's the founder of Flowers and Associates Property Rentals, the company that did this rehab.
SPEAKER_01:Ah, right. I remember those discussions.
SPEAKER_00:Yeah, we've covered topics with him like special needs housing and his approach to real estate investing generally. He has a really interesting perspective.
SPEAKER_01:He does, very community focused.
SPEAKER_00:And he actually wrote a book about it called The Joy of Helping Others Through Special Needs Housing.
SPEAKER_01:That's right.
SPEAKER_00:You can find out more about the book, its availability, and kind of the whole mission driving these projects over at passivimpact.net. That's passivimpact.net. And uh just to add, if you happen to own a distressed property yourself that maybe you're thinking of selling, or if you're just interested in learning more about their approach to real estate investing, you can actually contact the company directly. Oh. Yeah, the number is 901 621 3544. Again, that's 901-621-3544. Might be useful for some listeners.
SPEAKER_01:It's good information to have.
SPEAKER_00:Definitely. Well, hopefully this deep dive gave you a much clearer picture of that road from, you know, serious neglect all the way to a valuable asset. It's quite a journey.
SPEAKER_01:It really is. Shows the effort involved.
SPEAKER_00:Absolutely. Thanks for walking us through it. And thank you for listening. Until next time, keep learning.
