180 Lakeland Ridge Rd

Bean Station, TN 37708

$89,500C-

2 bd · 1.0 ba · 432 sqft · Built 2024 · Other · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $794/mo
• Mortgage (P&I): −$469
• Tax + insurance: −$149
• HOA: −$0
• Vac / Maint / Mgmt: −$167
• Net cashflow: $9/mo
• Annual: $103/yr
• Cap rate: 6.41%
• Cash-on-cash: 0.41%
• DSCR: 1.02
• 1% rule: 0.89%
• Cash to close: $25,060

Investor read

• This is a 2-bed/1.0-bath other listed at $90k. Condition is rated good.
• At list price, monthly cash flow is $9 ($103/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $79k (11.3% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $79k (11.3% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($619 loan paydown + $9k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#43 in TN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Grainger County (rural): math 15% / reading 23% proficiency, ranked #123 of 139 in TN (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Bean Station Elementary (math 15% / reading 20%, grade F, #704 of 952 statewide, top 74%, 419 students, 0% FRL); Rutledge Middle School (math 22% / reading 18%, grade F, #198 of 333 statewide, top 61%, 402 students, 0% FRL); Grainger High School (math 5% / reading 31%, grade F, #212 of 332 statewide, top 64%, 854 students, 0% FRL) — zoned schools average 0% FRL vs 57% district-wide (57 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 80 active listings in the ZIP; 74 units permitted in Grainger County in 2024 (0 in 5+ unit buildings).
• Grainger County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.4% vs local median 0.9% in Bean Station — 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

• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.