414 W Bockman Way

Sparta, TN 38583

$375,000B

16 bd · 4.0 ba · 3,120 sqft · Built 1947 · MultiFamily · Active · 91 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,256/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$267
• HOA: −$0
• Vac / Maint / Mgmt: −$1,104
• Net cashflow: $1,918/mo
• Annual: $23,020/yr
• Cap rate: 12.43%
• Cash-on-cash: 21.92%
• DSCR: 1.98
• 1% rule: 1.40%
• Cash to close: $105,000

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $375k.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $480/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $375k).
• It's been on market 91 days — a 9% lower offer ($341k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $341k (9.0% below list) — sets the bar for market timing.
• In year one you build about $802 of equity ($3k loan paydown + $-2k appreciation (-0.5% local appreciation)).
• Location reads 69/100 on livability (#67 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools F, amenities F, commute F.
• White County (rural): math 31% / reading 31% proficiency, ranked #56 of 139 in TN (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 354 active listings in the ZIP; 209 units permitted in White County in 2024 (0 in 5+ unit buildings).
• White County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $25k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.5% appreciation + 3.0% rent growth), your $105k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.4% vs local median 2.7% in Sparta — 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 91 days. Have you received any prior offers? Is the seller open to a 9% 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 1947 — 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.
• 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.