20370 W Lee Hwy

Philadelphia, TN 37846

$477,000B+

None bd · None ba · 4,746 sqft · Built 1960 · MultiFamily · Pending · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,716/mo
• Mortgage (P&I): −$2,501
• Tax + insurance: −$795
• HOA: −$0
• Vac / Maint / Mgmt: −$1,620
• Net cashflow: $2,799/mo
• Annual: $33,590/yr
• Cap rate: 13.33%
• Cash-on-cash: 25.15%
• DSCR: 2.12
• 1% rule: 1.62%
• Cash to close: $133,560

Investor read

• This is a multifamily listed at $477k. Condition is rated fair.
• At list price, monthly cash flow is $3k ($34k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $477k).
• It's been on market 31 days — a 3% lower offer ($463k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $463k (3.0% below list) — sets the bar for market timing.
• In year one you build about $51k of equity ($3k loan paydown + $48k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#129 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, schools F, crime F.
• Loudon County (rural): math 39% / reading 35% proficiency, ranked #18 of 139 in TN (top 13%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 15 active listings in the ZIP; 608 units permitted in Loudon County in 2024 (0 in 5+ unit buildings).
• Loudon County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $134k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$82k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Roof — Metal roof appears old and may need replacement.
• Major: Exterior siding — Siding is weathered and may need repainting or replacement.
• Major: Exterior fencing — Fencing is missing or in poor condition.
• Major: Parking lot — Cracked and in need of repair.
• Minor: Interior walls and paint — Worn but not severely damaged.
• Minor: Bathrooms — Functional but dated and in need of updates.