58 Marilyn Ct

Dunlap, TN 37327

$300,000D

3 bd · 2.5 ba · 2,096 sqft · Built 2003 · SingleFamily · Pending · 131 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,435/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$229
• HOA: −$0
• Vac / Maint / Mgmt: −$301
• Net cashflow: $-669/mo
• Annual: $-8,031/yr
• Cap rate: 3.62%
• Cash-on-cash: -9.56%
• DSCR: 0.57
• 1% rule: 0.48%
• Cash to close: $84,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $300k.
• At list price, monthly cash flow is $-669 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (39.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $143k (52.2% below list).
• It's been on market 131 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $143k (52.2% below list) — sets the bar for 1% rule.
• In year one you build about $32k of equity ($2k loan paydown + $30k appreciation (10.0% local appreciation)).
• Location reads 60/100 on livability (#264 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A-, housing B; Watch: schools F, amenities F, commute F.
• Sequatchie County (rural): math 24% / reading 24% proficiency, ranked #95 of 139 in TN (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 318 active listings in the ZIP; 37 units permitted in Sequatchie County in 2024 (0 in 5+ unit buildings).
• Sequatchie County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 6y ago; this cycle's ask has dropped $25k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $235k; 28% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$52k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.6% vs local median 2.4% in Dunlap — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 131 days. Have you received any prior offers? Is the seller open to a 52% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.