1015 Sherman Way · Morristown, TN 37877

$39,900

2 bd · 1.0 ba · 896 sqft · Other · 56 Days on market

Built 1978 0.62 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.2/10.0
• Appreciation +0.0/10.0

Listing remarks

Potential investment opportunity with most of the home having been gutted inside already. This home sits at the back of a level . 62 acre lot and has a small run-in shed on site as well. Home will need a complete rehab and is being sold as-is. Shown by appointment only.

Key facts

• Level acre lot
• Small run-in shed
• 0.62 acre lot

Tags

• INVESTMENT OPPORTUNITY
• LEVEL ACRE LOT
• SMALL RUN-IN SHED

Property features AI

Exterior

• Utilities: Public water; Electric service with circuit breakers
• Home design: Single-family house
• Construction: 896 square feet above-grade finished area
• Exterior features: 0.62-acre lot; Lot dimensions approximately 191' / 124' / 198' / 124'; Located in west industrial park area; access from Hunter Street to Sherman Way

Interior

• Bathrooms: One full bathroom
• Heating & cooling: No heating; No cooling
• Interior features: Five total rooms

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath other listed at $40k.

Deal economics

• At list price, monthly cash flow is $643 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Recommended offer: $39k (3.0% below list) — sets the bar for market timing.
• Cap rate 25.6% vs local median 2.9% in Morristown — 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 64/100 on livability (#175 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: schools D-, crime F, amenities F.
• Jefferson County (rural): math 25% / reading 27% proficiency, ranked #80 of 139 in TN (top 58%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 70 active listings in the ZIP; 254 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Jefferson County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 56 days — a 3% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• 3 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.
• Current owner paid $26k; list at $40k implies a 56% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $38,703 (3.0% below list)

Questions for the listing agent

1. It's been on market 56 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 2.92% ✓
• Cap rate: 25.64%
• Cash-on-cash: 69.10%
• DSCR: 4.07
• GRM: 2.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 68.6%
• Equity multiple: 4.09×
• Total profit: $34,526
• Equity at exit: $5,949

10-year hold

• IRR: 72.7%
• Equity multiple: 8.42×
• Total profit: $82,896
• Equity at exit: $3,450

Cash invested: $11,172 (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 37877

• Home prices YoY: -16.3%
• Active inventory: 70
• Price-to-rent: 2.9×

Monthly cashflow live

• Estimated rent: $1,163 medium
• Mortgage (P&I): −$209
• Tax est. 1.5%: −$50 /mo · $598/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$244
• Net cashflow: $643

Break-even live

Break-even rent $349

Max offer price $39,900

Occupancy floor 40%

Sensitivity live

Price	-10% $671	-5% $657	+0% $643	+5% $630	+10% $616
Rent	-10% $551	-5% $597	+0% $643	+5% $689	+10% $735
Rate	-1.0pp $663	-0.5pp $653	base $643	+0.5pp $633	+1.0pp $622

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: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-09
   statusdays on market $39,900 Pending 56 DOM
2. 2026-06-08
   days on market $39,900 Active 55 DOM
3. 2026-06-07
   days on market $39,900 Active 54 DOM
4. 2026-06-05
   days on market $39,900 Active 51 DOM
5. 2026-06-03
   days on market $39,900 Active 50 DOM
6. 2026-06-02
   days on market $39,900 Active 49 DOM
7. 2026-06-01
   days on market $39,900 Active 48 DOM
8. 2026-05-31
   days on market $39,900 Active 47 DOM
9. 2026-05-30
   days on market $39,900 Active 46 DOM
10. 2026-05-04
    status Active
11. 2026-04-29
    status Pending
12. 2026-04-10
    status Active
13. 2026-03-17
    status Pending
14. 2026-03-16
    listed $39,900 Active
15. 1985-08-31
    soldstatus $25,500
16. 1983-02-14
    soldstatus $23,750

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 5/10 Major 7 d/yr ≥102°F today · 22 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,960
• − Mortgage interest: −$2,235
• − Property taxes: −$598
• − Insurance: −$200
• − Repairs & maintenance: −$1,117
• − Management: −$1,117
• − Depreciation: −$1,161
• Taxable income: $7,533
• Est. tax owed @ 24.0%: −$1,808
• After-tax cash flow: $5,912/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: Jefferson County
• NCES district ID: 4702100
• Math proficiency: 25% ▼ -7.00%
• Reading proficiency: 27% ▼ -4.00%
• Median HH income: $41,074
• Composite: 22.03/100
• National rank: #8204
• State rank: #80 of 139 in TN

Livability — Morristown

• Score: 64/100
• State rank: #175
• US rank: #14625

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• City population: 35,239
• Population (ZIP): 9,103

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 56,862 people
• By 2030: 58,186 · +2.3%
• By 2040: 60,025 · +5.6%
• By 2050: 60,442 · +6.3%
• By 2075: 59,211 · +4.1%
• By 2100: 55,326 · -2.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Black 2% Two or more races 1% Hispanic / Latino 1%
• Common ancestry: Slovak 4% Serbian 3% Romanian 2%
• Foreign-born: 2% · South Korea
• Languages at home: 99% English-only · Russian/Polish/Slavic 1%

Political lean MEDSL · Jefferson

• 2024 margin: Solid R (+64.2) · D 17.4% · R 81.6%
• 2008→2024 swing: -21.5pp toward R · 2008: -42.7pp · 2024: -64.2pp
• All cycles: 2024: R+64.2 2020: R+59.3 2016: R+59.3 2012: R+50.1 2008: R+42.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -55.22%
• Current HPI: 284.4119
• Rent YoY: —
• Metro: —
• 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

+68.0% since first listed

7 events — show timeline

• 2026-05-04 Relisted — LAAR
• 2026-04-29 Pending — LAAR
• 2026-04-10 Relisted — LAAR
• 2026-03-17 Pending — LAAR
• 2026-03-16 Listed $39,900 LAAR
• 1985-08-31 Sold (Public Records) $25,500 Public Records
• 1983-02-14 Sold (Public Records) $23,750 Public Records

Property tax history

+6.2%/yr

Latest (2025): $29 · +3.6% YoY. Source: county tax records.