3816 Cherwood Ln · Chattanooga, TN 37406

$220,000

4 bd · 4.0 ba · 1,856 sqft · MultiFamily public records · 8 Days on market

Built 1972 1.00 ac lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.0/30.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• 1% rule +7.2/10.0
• Livability +3.9/5.0
• Rent growth +3.8/5.0
• Schools +2.7/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

Great investment opportunity If you're looking for a duplex that sits on a level lot with about an acre of land, here is your chance to own one. Each unit offers two bedrooms and one-and-a-half bathrooms. The duplex is set in a quiet cul-de-sac. Property being sold AS-IS

Key facts

• Quiet cul-de-sac
• Level lot
• 1 acre lot

Tags

• INVESTMENT OPPORTUNITY
• LEVEL LOT
• QUIET CUL-DE-SAC

Property features AI

Finance

• Financial info: Contains two rental units with current rents of $450 and $500

Exterior

• Parking: 1-car carport; Driveway
• Utilities: Public water; Public sewer
• Home design: Duplex (residential income property); Two levels
• Construction: Brick and other exterior materials; Slab foundation
• Exterior features: Shingle roof; Property on a cul-de-sac; Level lot

Interior

• Kitchen: Refrigerator; Oven
• Bathrooms: 2 full bathrooms; 2 half bathrooms
• Heating & cooling: Central heating (electric); Central air conditioning
• Interior features: Open floor plan; Storage space

What this means for you Summary

Snapshot

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $220k.

Deal economics

• At list price, monthly cash flow is $751 ($9k/yr) — positive. Per door: $376/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $220k).
• Cap rate 10.4% vs local median 3.4% in Chattanooga — 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.

Location & tenants

• Location reads 78/100 on livability (#3 in TN, #2,582 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D+, crime F.
• Hamilton County (urban): math 31% / reading 31% proficiency, ranked #42 of 139 in TN (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Snow Hill Elementary (math 48% / reading 39%, grade F, #184 of 952 statewide, top 19%, 657 students, 0% FRL); Dalewood Middle School (math 7% / reading 7%, grade F, #278 of 333 statewide, top 85%, 258 students, 0% FRL); Brainerd High School (math 2% / reading 12%, grade F, #294 of 332 statewide, top 91%, 635 students, 0% FRL) — zoned schools average 0% FRL vs 52% district-wide (52 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising fast (+5.1%/yr); 127 active listings in the ZIP; lower-income renter base — watch delinquency; 2,133 units permitted in Hamilton County in 2024 (405 in 5+ unit buildings).
• At $2,681/mo this rent would consume 72% of the median local household income ($45k/yr) (locally 759% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Hamilton County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $62k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $63k; list at $220k implies a 249% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $220,000

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.22% ✓
• Cap rate: 10.39%
• Cash-on-cash: 14.64%
• DSCR: 1.65
• GRM: 6.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 5.13% rent growth · sell at horizon

5-year hold

• IRR: 7.3%
• Equity multiple: 1.29×
• Total profit: $18,019
• Equity at exit: $32,803

10-year hold

• IRR: 18.3%
• Equity multiple: 2.66×
• Total profit: $102,242
• Equity at exit: $19,022

Cash invested: $61,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Tennessee: 87 Strongly Landlord-Friendly · R+13
• County: — inherits STATE
• City: — inherits STATE

14-day notice (URLTA); generally landlord-favorable; Nashville court paced moderate.

Methodology + full state rankings →

ZIP-level market 37406

• Home prices YoY: -23.8%
• Rents YoY: 5.1%
• Active inventory: 127
• Price-to-rent: 13.7×

Monthly cashflow live

• Estimated rent: $2,681 high
• Mortgage (P&I): −$1,154
• Tax from tax record: −$121 /mo · $1,455/yr
• Insurance: −$92
• HOA: −$0
• Vacancy / Maint / Mgmt: −$563
• Net cashflow: $751

Break-even live

Break-even rent $1,730

Max offer price $220,000

Occupancy floor 67%

Sensitivity live

Price	-10% $876	-5% $814	+0% $751	+5% $689	+10% $627
Rent	-10% $540	-5% $645	+0% $751	+5% $857	+10% $963
Rate	-1.0pp $862	-0.5pp $807	base $751	+0.5pp $694	+1.0pp $636

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	2	1.5	$2,682
Total (2 units)			$2,681

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $55,000
• Closing costs: $6,600
• Reserves months: —
• Total cash needed: —

Listing history 7 events

1. 2026-06-14
   statusdays on market $220,000 Pending 8 DOM
2. 2026-06-10
   days on market $220,000 Active 7 DOM
3. 2026-06-09
   days on market $220,000 Active 6 DOM
4. 2026-06-08
   days on market $220,000 Active 5 DOM
5. 2026-06-07
   days on market $220,000 Active 4 DOM
6. 2026-06-05
   remarks 272-char remark
7. 2026-06-05
   listed $220,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TN · Resets to sale price

• Current annual tax: $1,455 · $121/mo
• Projected year-2 tax: $1,562 · $130/mo
• Expected delta: +$107/yr (+$9/mo · 7.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥105°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 10% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $32,172
• − Mortgage interest: −$12,323
• − Property taxes: −$1,455
• − Insurance: −$1,100
• − Repairs & maintenance: −$2,574
• − Management: −$2,574
• − Depreciation: −$6,400
• Taxable income: $5,746
• Est. tax owed @ 24.0%: −$1,379
• After-tax cash flow: $7,637/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hamilton County
• NCES district ID: 4701590
• Math proficiency: 31% ▼ -10.00%
• Reading proficiency: 31% ▼ -3.00%
• Median HH income: $47,456
• Composite: 26.8/100
• National rank: #7122
• State rank: #42 of 139 in TN

Livability — Chattanooga

• Score: 78/100
• State rank: #3
• US rank: #2582

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime F Employment D+ Housing A+ Health & safety A User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Chattanooga, TN
• County: Hamilton County · 312,777 people
• City population: 131,999
• Metro: Chattanooga, TN-GA
• Population (ZIP): 13,364
• Household income: $44,850
• Rent vs Own: 52.8% rent · 47.2% own
• Severe rent burden: 759.0

Population outlook (Hamilton County) Hauer SSP2

• Today (2025): 393,784 people
• By 2030: 412,983 · +4.9%
• By 2040: 449,502 · +14.1%
• By 2050: 484,341 · +23.0%
• By 2075: 565,746 · +43.7%
• By 2100: 618,394 · +57.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (70%)
• Race & ethnicity: Black 70% White 21% Hispanic / Latino 6% Two or more races 5%
• Hispanic origin (detail): Puerto Rican 1%
• Common ancestry: Italian 1% Slovak 1%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 6% Other Indo-European 1%

Political lean MEDSL · Hamilton

• 2024 margin: R (+13.1) · D 42.7% · R 55.7% · Other 1.6%
• 2008→2024 swing: -1.2pp toward R · 2008: -11.8pp · 2024: -13.1pp
• All cycles: 2024: R+13.1 2020: R+9.7 2016: R+16.6 2012: R+14.8 2008: R+11.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -63.73%
• Current HPI: 203.5858
• Rent YoY: ▲ 5.13%
• Metro: Chattanooga, TN-GA
• State GDP YoY: ▲ 2.78%
• F500 in state: 22

Industry mix (Fortune 500 HQ in TN)

Industry	F500 HQs	Revenue
▸Healthcare	3	$91B
▸Retail	3	$72B
▸Transportation / Logistics	1	$88B
▸Paper / Packaging	1	$19B
▸Insurance	1	$13B
▸Energy	1	$12B

Price history

+249.2% since first listed

2 events — show timeline

• 2026-06-04 Listed $220,000 GCAR
• 1992-08-21 Sold (Public Records) $63,000 Public Records

Property tax history

+3.5%/yr

Latest (2025): $1,455 · +9.7% YoY. Source: county tax records.