1118 Indian Shadows Dr

Rockwood, TN 37880

$455,000D-

3 bd · 3.0 ba · 1,620 sqft · Built 2015 · SingleFamily · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,500/mo
• Mortgage (P&I): −$2,386
• Tax + insurance: −$289
• HOA: −$10
• Vac / Maint / Mgmt: −$525
• Net cashflow: $-710/mo
• Annual: $-8,518/yr
• Cap rate: 4.42%
• Cash-on-cash: -6.69%
• DSCR: 0.70
• 1% rule: 0.55%
• Cash to close: $127,400

Investor read

• This is a 3-bed/3.0-bath single-family listed at $455k.
• At list price, monthly cash flow is $-710 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $330k (27.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $250k (45.1% below list).
• It's been on market 127 days — a 12% lower offer ($400k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $250k (45.1% below list) — sets the bar for 1% rule.
• In year one you build about $49k of equity ($3k loan paydown + $46k appreciation (10.0% local appreciation)).
• Location reads 55/100 on livability (#356 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Roane County (town): math 30% / reading 29% proficiency, ranked #64 of 139 in TN (top 46%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Kingston Elementary (math 36% / reading 36%, grade F, #305 of 952 statewide, top 32%, 808 students, 0% FRL); Cherokee Middle School (math 43% / reading 34%, grade F, #49 of 333 statewide, top 15%, 470 students, 0% FRL); Roane County High School (math 2% / reading 42%, grade F, #156 of 332 statewide, top 49%, 652 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: 107 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 229 units permitted in Roane County in 2024 (0 in 5+ unit buildings).
• Roane County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts 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.
• By year 2, paydown + projected appreciation supports a ~$78k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.4% vs local median 3.1% in Rockwood — 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

• 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 127 days. Have you received any prior offers? Is the seller open to a 45% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?