909 W Morris St

Sweetwater, TN 37874

$224,000F

2 bd · 1.0 ba · 600 sqft · Built 2013 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $575/mo
• Mortgage (P&I): −$1,175
• Tax + insurance: −$167
• HOA: −$0
• Vac / Maint / Mgmt: −$121
• Net cashflow: $-888/mo
• Annual: $-10,653/yr
• Cap rate: 1.54%
• Cash-on-cash: -16.98%
• DSCR: 0.24
• 1% rule: 0.26%
• Cash to close: $62,720

Investor read

• This is a 2-bed/1.0-bath single-family listed at $224k.
• At list price, monthly cash flow is $-888 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $67k (70.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $58k (74.3% below list).
• It's been on market 38 days — a 3% lower offer ($217k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $58k (74.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#134 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Sweetwater (rural): math 25% / reading 24% proficiency, ranked #94 of 139 in TN (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Sweetwater Elementary (math 40% / reading 35%, grade F, #269 of 952 statewide, top 28%, 299 students, 0% FRL) — zoned schools average 0% FRL vs 61% district-wide (61 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 38% at this address vs 24% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Sweetwater average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 141 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 157 units permitted in Monroe County in 2024 (0 in 5+ unit buildings).
• 6 sale attempts since 18y ago; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $102k; list at $224k implies a 121% 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 1.5% vs local median 4.1% in Sweetwater — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 38 days. Have you received any prior offers? Is the seller open to a 74% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.