100/102 Howard Ln

Oak Ridge, TN 37830

$280,000C

4 bd · 2.0 ba · 1,225 sqft · Built 1943 · MultiFamily · Active · 254 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,796/mo
• Mortgage (P&I): −$1,468
• Tax + insurance: −$174
• HOA: −$0
• Vac / Maint / Mgmt: −$587
• Net cashflow: $567/mo
• Annual: $6,800/yr
• Cap rate: 8.72%
• Cash-on-cash: 8.67%
• DSCR: 1.39
• 1% rule: 1.00%
• Cash to close: $78,400

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $280k.
• At list price, monthly cash flow is $567 ($7k/yr) — positive. Per door: $283/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 $280k (0.1% below list).
• It's been on market 254 days — a 12% lower offer ($246k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $246k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#4 in TN, #2,605 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Oak Ridge (suburban): math 34% / reading 37% proficiency, ranked #23 of 139 in TN (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Willow Brook Elementary (math 27% / reading 22%, grade F, #546 of 952 statewide, top 61%, 391 students, 0% FRL); Robertsville Middle School (math 32% / reading 31%, grade F, #89 of 333 statewide, top 28%, 702 students, 0% FRL); Oak Ridge High School (math 10% / reading 53%, grade F, #69 of 332 statewide, top 21%, 1,587 students, 0% FRL) — zoned schools average 0% FRL vs 40% district-wide (40 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1943 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.1%/yr); 189 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); 400 units permitted in Anderson County in 2024 (91 in 5+ unit buildings).
• 2 sale attempts since 2y ago; this cycle's ask has dropped $19k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.7% vs local median 3.4% in Oak Ridge — 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.
• At $2,796/mo this rent would consume 46% of the median local household income ($72k/yr) (locally 914% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 254 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1943 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.