587 Baker Rd

Martin, TN 38237

$4,150,000D

4 bd · None ba · 870 sqft · Built 1995 · MultiFamily · Active · 198 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $37,119/mo
• Mortgage (P&I): −$21,763
• Tax + insurance: −$6,917
• HOA: −$0
• Vac / Maint / Mgmt: −$7,795
• Net cashflow: $644/mo
• Annual: $7,732/yr
• Cap rate: 6.48%
• Cash-on-cash: 0.67%
• DSCR: 1.03
• 1% rule: 0.89%
• Cash to close: $1,162,000

Investor read

• This is a 4-bed/?-bath multifamily listed at $4.15M. Condition is rated fair.
• At list price, monthly cash flow is $644 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.71M (10.6% below list).
• It's been on market 198 days — a 12% lower offer ($3.65M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.65M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $29k of loan paydown is wiped out by about $124k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#15 in TN, #4,330 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B+; Watch: commute F, employment F.
• Weakley County (rural): math 34% / reading 38% proficiency, ranked #32 of 139 in TN (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Dresden Elementary (math 47% / reading 37%, grade F, #191 of 952 statewide, top 22%, 467 students, 0% FRL); Martin Middle School (math 26% / reading 31%, grade F, #114 of 333 statewide, top 34%, 446 students, 0% FRL); Westview High School (math 2% / reading 47%, grade F, #125 of 332 statewide, top 38%, 560 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: 86 active listings in the ZIP; 69 units permitted in Weakley County in 2024 (0 in 5+ unit buildings).
• Weakley County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 4y 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 $2.38M; list at $4.15M implies a 75% gain — meaningful room to come down on a strong offer.
• 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 6.5% vs local median 4.0% in Martin — 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 $37,119/mo this rent would consume 862% of the median local household income ($52k/yr) (locally 636% 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 198 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.
• 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)

• Minor: Landscaping — Some areas appear overgrown or uneven
• Minor: Exterior paint — Some areas appear faded or chipped