1216 Lewis St

Nashville-Davidson metropolitan government (balance), TN 37210

$2,535,000F

78 bd · 78.0 ba · 9,558 sqft · Built 1969 · MultiFamily · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,997/mo
• Mortgage (P&I): −$13,294
• Tax + insurance: −$3,848
• HOA: −$0
• Vac / Maint / Mgmt: −$1,259
• Net cashflow: $-12,404/mo
• Annual: $-148,851/yr
• Cap rate: 0.62%
• Cash-on-cash: -20.25%
• DSCR: 0.10
• 1% rule: 0.24%
• Cash to close: $709,800

Investor read

• This is a 3 × 2-bed/2-bath units multifamily listed at $2.54M.
• At list price, monthly cash flow is $-12k ($-149k/yr) — negative. Per door: $-4k/mo.
• To cash-flow at today's rent, offer at most $568k (77.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $600k (76.3% below list).
• It's been on market 17 days — a 2% lower offer ($2.50M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $568k (77.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $18k of loan paydown is wiped out by about $76k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Davidson County (urban): math 12% / reading 19% proficiency, ranked #126 of 139 in TN (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John B. Whitsitt Elementary (math 2% / reading 8%, grade F, #896 of 952 statewide, top 96%, 484 students, 0% FRL); Glencliff High School (math 0% / reading 6%, grade F, #323 of 332 statewide, top 98%, 1,177 students, 0% FRL) — zoned schools average 0% FRL vs 66% district-wide (66 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents rising (+1.8%/yr); 169 active listings in the ZIP; 6,873 units permitted in Davidson County in 2024 (4,138 in 5+ unit buildings).
• Davidson County population projected at +42% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.6% vs local median 2.9% in Nashville-Davidson metropolitan government (balance) — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $5,997/mo this rent would consume 143% of the median local household income ($50k/yr) (locally 1435% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.