When Frank and Ann Ewing decided to purchase a rundown property in West Tennessee to renovate and rent out, they did so with the idea that they wanted to help provide affordable housing for others. What they didn’t expect was that they’d also become millionaires in the process.
But that’s exactly what happened as the Ewings quietly built a real estate portfolio over the past 20 years that’s now worth around $10 million, while simultaneously making a small dent in the housing affordability crisis in their area.
“We decided that many of the world’s problems start at home—all people deserve a safe, decent place to live and a lack of a decent place to live can cause social problems that affect us all,” says Ann Ewing, the co-founder, with her husband, of Better World Enterprises and co-author of “Housing Into Homes,” which illustrates how it’s possible to make money in real estate while “doing good” at the same time.
Step by step, the Ewings amassed not only an entire portfolio of properties including a 33-unit townhouse complex, 20 duplexes, and single-family homes (about 90 rental units in total), but they stayed true to their initial mission, which was to help make the world a better place.
How West Tennessee became home for a Better World
When Frank and Ann first met through an online dating site in the fall of 2000, they both lived in the Northeast. Their connection was immediate and their shared life goals aligned to the point that getting married in August 2001 felt like an easy decision.
During the time they were dating, however, Frank’s mother tragically passed away. Though she’d been ill for some time, it was still a tough transition, but one they weathered as a couple. And in the process, they inherited a home in Jackson, TN. After the terrorist attacks of Sept. 11, 2001, the couple decided to leave New York, where they’d been living, and move down south.
Once in Jackson, the Ewings “took some time to learn about Jackson, and learned that, at that time, West Tennessee was the bankruptcy capital of the world.” As such, they realized they were actually in the perfect place to begin their Better World Project.
The couple planned to combine Ann’s business acumen (she’s a Dartmouth and Wharton School of Business alum) with Frank’s expertise in home restoration, repairs, and improvements to make their dream come to life. And by 2002, they had started doing business as Better World Properties.
One house leads to another and another
It was word of mouth that helped the Ewings find their first property to purchase in Jackson.
“We became aware of a somewhat neglected two-bedroom, one-bathroom home in a good neighborhood near our city’s largest hospital and decided to check it out,” says Ann. “We bought it, cleaned it up, and promptly rented it [out].”
They used some money they’d saved to purchase that first property for $55,000 (this was in 2002, so home prices were more accessible), and decided to rent it out for $550/month. The rent calculation was based on 1% of the investment property.
“As properties that are not in good condition sell for less than better maintained properties, and since we did much of the work on the property ourselves, we were able to rent it [out] for a bit below the standard rental rate in the area and still cover our costs,” says Ann. “”The numbers meant that our investment should generate roughly a 10% return per year, not including the increased value of the property or tax benefits.”
Today, after eventually adding an additional bathroom and bedroom, that first property is worth over $200,000.
Though it was personal savings that financed their first home acquisition, once they’d made that purchase they were able to use the collateral from that first home to purchase their second property—a neglected four-plex that had been constructed in 1938.
It needed significant work, much of which they did themselves again, including sanding all the wood floors and repainting the premises. But after purchasing it for $53,400 and restoring it to its original elegance, they had every unit rented out right away.
“We rented it [out] at rates ranging from $450 to $900 from 2002 to 2023 … and in the process, we turned a ‘dump’ into a beautiful building,” explain the Ewings. “It was hard work, but very rewarding psychologically as well as financially.”
Charging less rent but finding bigger gains
The calculations the Ewings use to determine what they rent their properties for include variables beyond simply making a profit. But in the balance, they also found themselves coming out ahead, which in turn allowed them to continue the process of buying, renovating, and renting to tenants.
“It is cheaper and quicker for an investor to buy a property that needs attention—everything from a little cleanup to a major renovation, bring it to good condition, and rent it out rather than tear it down and build a new property with new materials,” says Ann. “Therefore, since housing is available to the community faster, and with a quicker return on investment, the owner can still make a profit while accepting a lower rent.”
The Ewings intentionally rent out their properties for rents that are a bit less than market rate (5% to 10%), which they say helps with quickly renting them out and also keeping long-term tenants.
“Other landlords might think we are crazy, but it works for us,” says Ann. “While we are a company and have to cover our expenses and generate enough money to invest in future renovations, we are also on a mission to improve communities.”
And over the course of the last 20+ years, the Ewings have done just that.
“We rented [out] a one-bedroom property to an Army veteran who received a Section 8 voucher from the VA,” says Ann. “We literally helped her move from a tent in the woods behind a fast-food restaurant into the first stable housing she had had in years.”
Another example is an immigrant family that would not qualify for conventional bank financing to buy a home in the United States.
“Many years ago they rented from us for three years and always paid their rent on time and in full,” says Ann. “They asked if they could purchase the house from us and we sold it to them, acting as the mortgage holder.” Now, that family and their four children are very close to paying off their house.
Three secrets to their business success
The Ewings say they follow three principles in running their business.
First, treat everyone with respect and dignity. As they say, customer service is key to any business.
“Even if we don’t have a property that would work for a particular person, we may be able to help someone else that they know,” says Ann.
Second, they will not rent out a property that they would not live in themselves.
“While we may prefer a different number of bedrooms or a different layout, we will not rent [out] a property unless it is a clean, safe, decent place to live,” says Ann.
Third, all of their renovations are done with an eye toward energy efficiency.
“We will invest extra money upfront to help people keep their utility bills low,” the couple adds. “This is good for the tenants, it is good for us because happy tenants tend to renew their leases, and it is good for the environment. Win-win-win!”
The Ewings have also deliberately remained very hands-on throughout the process over the years.
“All of our properties are in Jackson, TN, or just beyond the city limits into Madison County,” states Ann, explaining that she and Frank made a decision early on not to purchase a property more than a 15-minute drive from their home. “Managing property can be challenging enough when you are near it, and it gets exponentially more difficult the further away it is.”
Though they recently turned management of a few properties over to a local property manager to free up some of their personal time for other pursuits, they are still managing several of their properties themselves and continue to look for ways to expand their mission.
“We are currently working on a duplex built in 1925 that we are bringing up to 2026 standards, and once this is complete, we may look for another property,” says Ann.
Helping others learn to follow in their footsteps
After more than 20 years of turning “Housing Into Homes,” the Ewings are now on a quest to teach other people how they can “do well by doing good” (their unofficial motto).
That was one reason they wrote their book—to give others the tools and a blueprint on how they can help others and help themselves at the same time by turning real estate investments into affordable housing.
“It is psychologically rewarding to turn a run-down property into a beautiful home,” says Ann. “Making a difference in people’s lives is an awesome bonus!”
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