204 Arrants Rd

Decatur, TN 37322

$1,150,000C-

36 bd · 5.0 ba · 2,688 sqft · Built 1996 · MultiFamily · Active · 364 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,404/mo
• Mortgage (P&I): −$6,031
• Tax + insurance: −$805
• HOA: −$0
• Vac / Maint / Mgmt: −$1,975
• Net cashflow: $593/mo
• Annual: $7,116/yr
• Cap rate: 6.91%
• Cash-on-cash: 2.21%
• DSCR: 1.10
• 1% rule: 0.82%
• Cash to close: $322,000

Investor read

• This is a 9 × 4-bed/1.4-bath units multifamily listed at $1.15M.
• At list price, monthly cash flow is $593 ($7k/yr) — positive. Per door: $66/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $940k (18.2% below list).
• It's been on market 364 days — a 12% lower offer ($1.01M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $940k (18.2% below list) — sets the bar for 1% rule.
• In year one you build about $123k of equity ($8k loan paydown + $115k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#240 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, health & safety C-, amenities F.
• Meigs County (rural): math 16% / reading 22% proficiency, ranked #122 of 139 in TN (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Meigs North Elementary (math 17% / reading 22%, grade F, #654 of 952 statewide, top 72%, 434 students, 0% FRL); Meigs Middle School (math 19% / reading 21%, grade F, #198 of 333 statewide, top 61%, 390 students, 0% FRL); Meigs County High School (math 12% / reading 22%, grade F, #225 of 332 statewide, top 69%, 538 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.
• Market conditions: 239 active listings in the ZIP; 94 units permitted in Meigs County in 2024 (0 in 5+ unit buildings).
• Meigs County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 13 sale attempts since 8y 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.
• Current owner paid $550k; list at $1.15M implies a 109% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $322k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$198k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.9% vs local median 1.6% in Decatur — 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 364 days. Have you received any prior offers? Is the seller open to a 18% 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?
• 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.
• 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.