29 Myers Rd

Summertown, TN 38483

$199,900D

4 bd · 2.0 ba · 4,205 sqft · Built 1994 · SingleFamily · Pending · 439 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,454/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$205
• HOA: −$0
• Vac / Maint / Mgmt: −$305
• Net cashflow: $-104/mo
• Annual: $-1,247/yr
• Cap rate: 5.67%
• Cash-on-cash: -2.23%
• DSCR: 0.90
• 1% rule: 0.73%
• Cash to close: $55,972

Investor read

• This is a 4-bed/2.0-bath single-family listed at $200k.
• At list price, monthly cash flow is $-104 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (9.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $145k (27.2% below list).
• It's been on market 439 days — a 12% lower offer ($176k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $145k (27.2% below list) — sets the bar for 1% rule.
• In year one you build about $21k of equity ($1k loan paydown + $20k appreciation (10.0% local appreciation)).
• Location reads 56/100 on livability (#340 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B+; Watch: health & safety C-, crime F, amenities F.
• Lawrence County (rural): math 29% / reading 29% proficiency, ranked #67 of 139 in TN (top 48%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Summertown Elementary (math 40% / reading 29%, grade F, #319 of 952 statewide, top 37%, 646 students, 0% FRL); E O Coffman Middle School (math 23% / reading 26%, grade F, #154 of 333 statewide, top 48%, 582 students, 0% FRL); Summertown High School (math 25% / reading 28%, grade F, #112 of 332 statewide, top 35%, 610 students, 0% FRL) — zoned schools average 0% FRL vs 50% district-wide (50 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 88 active listings in the ZIP; 27 units permitted in Lawrence County in 2024 (0 in 5+ unit buildings).
• Lawrence County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 22 sale attempts since 9y ago; this cycle's ask has dropped $140k (41%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $160k; 25% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• It's been on market 439 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• 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.