8905 Oak Ridge Dr

Memphis, TN 38680

$342,900D

4 bd · 3.0 ba · 1,657 sqft · Built 1988 · SingleFamily · Pending · 256 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,215/mo
• Mortgage (P&I): −$1,798
• Tax + insurance: −$202
• HOA: −$0
• Vac / Maint / Mgmt: −$465
• Net cashflow: $-251/mo
• Annual: $-3,007/yr
• Cap rate: 5.42%
• Cash-on-cash: -3.13%
• DSCR: 0.86
• 1% rule: 0.65%
• Cash to close: $96,012

Investor read

• This is a 4-bed/3.0-bath single-family listed at $343k.
• At list price, monthly cash flow is $-251 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $299k (12.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $221k (35.4% below list).
• It's been on market 256 days — a 12% lower offer ($302k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $221k (35.4% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $34k appreciation (10.0% local appreciation)).
• Location reads 70/100 on livability (#59 in TN) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F, employment F.
• Desoto County School District (suburban): math 48% / reading 42% proficiency, ranked #20 of 130 in MS (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Walls Elementary School (math 24% / reading 26%, grade F, #217 of 375 statewide, top 58%, 718 students, 100% FRL); Lake Cormorant Middle (math 51% / reading 30%, grade F, #60 of 179 statewide, top 37%, 764 students, 100% FRL); Lake Cormorant High (math 29% / reading 42%, grade F, #66 of 197 statewide, top 34%, 969 students, 100% FRL) — zoned schools average 100% FRL vs 43% district-wide (56 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 5 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,155 units permitted in DeSoto County in 2024 (0 in 5+ unit buildings).
• DeSoto County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$59k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 45% of the median local income ($60k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 256 days. Have you received any prior offers? Is the seller open to a 35% 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.