225 Maranatha Way

Cosby, TN 37722

$910,000B

5 bd · 3.0 ba · 4,468 sqft · Built 2008 · SingleFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $35,314/mo
• Mortgage (P&I): −$4,772
• Tax + insurance: −$630
• HOA: −$0
• Vac / Maint / Mgmt: −$7,416
• Net cashflow: $22,496/mo
• Annual: $269,948/yr
• Cap rate: 35.96%
• Cash-on-cash: 105.95%
• DSCR: 5.71
• 1% rule: 3.88%
• Cash to close: $254,800

Investor read

• This is a 5-bed/3.0-bath single-family listed at $910k.
• At list price, monthly cash flow is $22k ($270k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($35k rent vs $910k).
• It's been on market 88 days — a 6% lower offer ($855k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $855k (6.0% below list) — sets the bar for market timing.
• In year one you build about $97k of equity ($6k loan paydown + $91k appreciation (10.0% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Cocke County (rural): math 21% / reading 21% proficiency, ranked #112 of 139 in TN (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 168 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 13 units permitted in Cocke County in 2024 (0 in 5+ unit buildings).
• Cocke County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 11 sale attempts since 12y ago; this cycle's ask has dropped $75k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $428k; list at $910k implies a 112% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $255k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$156k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 36.0% vs local median 2.3% in Cosby — 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

• It's been on market 88 days. Have you received any prior offers? Is the seller open to a 6% 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.
• 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.