434 N Pine St

Whitwell, TN 37397

$299,000B

40 bd · 20.0 ba · 4,000 sqft · Built 1996 · MultiFamily · Active · 115 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,958/mo
• Mortgage (P&I): −$1,568
• Tax + insurance: −$624
• HOA: −$0
• Vac / Maint / Mgmt: −$1,041
• Net cashflow: $1,725/mo
• Annual: $20,703/yr
• Cap rate: 13.72%
• Cash-on-cash: 26.52%
• DSCR: 2.18
• 1% rule: 1.66%
• Cash to close: $83,720

Investor read

• This is a 5 × 8-bed/4.0-bath units multifamily listed at $299k.
• At list price, monthly cash flow is $2k ($21k/yr) — positive. Per door: $345/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $299k).
• It's been on market 115 days — a 9% lower offer ($272k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $272k (9.0% below list) — sets the bar for market timing.
• In year one you build about $17k of equity ($2k loan paydown + $14k appreciation (4.8% local appreciation)).
• Location reads 56/100 on livability (#346 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, health & safety F.
• Marion County (town): math 24% / reading 25% proficiency, ranked #89 of 139 in TN (top 64%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Whitwell Elementary (math 47% / reading 37%, grade F, #191 of 952 statewide, top 22%, 492 students, 0% FRL); Whitwell High School (math 12% / reading 32%, grade F, #163 of 332 statewide, top 51%, 343 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.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 80 active listings in the ZIP; 225 units permitted in Marion County in 2024 (0 in 5+ unit buildings).
• 7 sale attempts since 21y ago 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.
• At projected returns (4.8% appreciation + 3.0% rent growth), your $84k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); moderate wildfire risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.7% vs local median 2.9% in Whitwell — 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 115 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.