3710 Weber Rd Unit A204

Gatlinburg, TN 37738

$134,995F

1 bd · 1.0 ba · 563 sqft · Built 1986 · Condo · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,378/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$748
• Vac / Maint / Mgmt: −$289
• Net cashflow: $-592/mo
• Annual: $-7,105/yr
• Cap rate: 1.03%
• Cash-on-cash: -18.80%
• DSCR: 0.16
• 1% rule: 1.02%
• Cash to close: $37,799

Investor read

• This is a 1-bed/1.0-bath condo listed at $135k. Condition is rated fair.
• At list price, monthly cash flow is $-592 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $49k (63.5% below list).
• Meets the 1% rule at list price ($1k rent vs $135k).
• It's been on market 93 days — a 9% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $49k (63.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $933 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#27 in TN) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A; Watch: crime F, amenities F, employment D-.
• Sevier County (rural): math 31% / reading 28% proficiency, ranked #62 of 139 in TN (top 45%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pi Beta Phi Elementary (math 27% / reading 27%, grade F, #496 of 952 statewide, top 55%, 314 students, 0% FRL); Gatlinburg Pittman Junior High (math 44% / reading 38%, grade F, #37 of 333 statewide, top 12%, 418 students, 0% FRL); Gatlinburg Pittman High (math 10% / reading 42%, grade F, #117 of 332 statewide, top 37%, 401 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.
• Watch-outs: HOA is 54% of rent.
• Market conditions: 910 active listings in the ZIP; 1,594 units permitted in Sevier County in 2024 (456 in 5+ unit buildings).
• Sevier County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $32k; list at $135k implies a 315% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.0% vs local median 1.4% in Gatlinburg — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 93 days. Have you received any prior offers? Is the seller open to a 63% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — wood cabinets show wear
• Minor: bathroom vanity — standard fixtures
• Minor: interior walls — neutral paint