3605/3609 Hodley Ave · Chattanooga, TN 37410

$465,000

12 bd · 9.0 ba · 1,800 sqft · MultiFamily · 14 Days on market

Built 2026 Excellent condition $100/mo HOA · 6% of rent

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +17.5/30.0
• ARV discount +7.5/15.0
• Appreciation +5.7/10.0
• DSCR +5.5/10.0
• 1% rule +5.0/10.0
• Condition / age +4.8/5.0
• Livability +3.9/5.0
• Schools +2.7/10.0
• Rent growth +2.5/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 3 units. confirmed

Listing remarks

Live in one side. Lease the other. Rent both. However you choose to use it, this brand-new duplex creates opportunities that are increasingly rare in today's market. Located in the growing Somerville Cottages community in South Chattanooga, this newly constructed two-unit townhome offers multiple ways to generate income, reduce housing costs, and build equity. Owner-occupants can offset their mortgage by leasing one side while enjoying the benefits of homeownership. Investors can add a turnkey asset to their portfolio in an area experiencing significant growth and strong rental demand. The flexible layout also creates opportunities for multi-generational living, roommates, or shared ownersh

Key facts

• Quartz countertops
• Income potential
• Brand new duplex

Tags

• BRAND NEW DUPLEX
• TWO UNIT TOWNHOME
• INCOME POTENTIAL
• 1 2 10 BUILDER'S WARRANTY
• QUARTZ COUNTERTOPS
• COMPLETE APPLIANCE PACKAGE

Property features AI

Finance

• Other: Pets allowed
• HOA & community: Homeowners association with $100 monthly fee; HOA covers grounds maintenance; Community features include sidewalks and landscaping

Exterior

• Parking: Off-street parking; On-street parking; Parking lot; Paved parking
• Utilities: Public water; Public sewer; Electricity connected; Water connected; Underground utilities
• Home design: Duplex (residential income); New construction; Level lot; Paved road
• Construction: HardiPlank type siding; Shingle roof; Slab foundation; Built as new construction
• Exterior features: Lighting; Rain gutters; Covered patio and porch

Interior

• Kitchen: Microwave; Electric range; Electric oven; Dishwasher; Disposal
• Bedrooms: Units are unfurnished
• Flooring: Carpet; Vinyl
• Bathrooms: 2 full bathrooms; 2 half bathrooms
• Heating & cooling: Central heating (electric); Electric cooling
• Interior features: High ceilings; Open floorplan; Kitchen island; Pantry; Walk-in closet(s); High speed internet
• Laundry & utility: Washer hookup inside; Electric dryer hookup; Electric water heater

🏗️ New construction. Builder plan / spec listing (the home may be to-be-built); metrics use comparable previous sales.

What this means for you Summary

Snapshot

• This is a 3 × 2-bed/1.5-bath units multifamily listed at $465k. Condition is rated excellent.

Deal economics

• At list price, monthly cash flow is $355 ($4k/yr) — positive. Per door: $118/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $464k (0.1% below list).
• Recommended offer: $464k (0.1% below list) — sets the bar for 1% rule.
• Cap rate 7.2% vs local median 3.4% in Chattanooga — 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.

Location & tenants

• Location reads 78/100 on livability (#3 in TN, #2,582 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D+, crime F.
• Hamilton County (urban): math 31% / reading 31% proficiency, ranked #42 of 139 in TN (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hixson Elementary (math 24% / reading 20%, grade F, #601 of 952 statewide, top 66%, 402 students, 0% FRL); Orchard Knob Middle (math 5% / reading 6%, grade F, #291 of 333 statewide, top 88%, 334 students, 0% FRL) — zoned schools average 0% FRL vs 52% district-wide (52 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 14% at this address vs 31% district-wide (-17 pts) — the specific schools serving this property underperform the Hamilton County average; the district grade overstates school quality for this exact location.
• Market conditions: 61 active listings in the ZIP; lower-income renter base — watch delinquency; 2,133 units permitted in Hamilton County in 2024 (405 in 5+ unit buildings).
• At $4,644/mo this rent would consume 194% of the median local household income ($29k/yr) (locally 406% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $9k of equity ($3k loan paydown + $6k appreciation (1.3% local appreciation)).
• Hamilton County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $130k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $464,400 (0.1% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.00% ✗
• Cap rate: 7.21%
• Cash-on-cash: 3.27%
• DSCR: 1.15
• GRM: 8.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

1.33% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 5.8%
• Equity multiple: 1.30×
• Total profit: $39,089
• Equity at exit: $166,866

10-year hold

• IRR: 9.8%
• Equity multiple: 2.23×
• Total profit: $160,562
• Equity at exit: $228,172

Cash invested: $130,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Tennessee: 87 Strongly Landlord-Friendly · R+13
• County: — inherits STATE
• City: — inherits STATE

14-day notice (URLTA); generally landlord-favorable; Nashville court paced moderate.

Methodology + full state rankings →

ZIP-level market 37410

• Home prices YoY: 0.6%
• Active inventory: 61
• Price-to-rent: 25.0×

Monthly cashflow live

• Estimated rent: $4,644 medium
• Mortgage (P&I): −$2,439
• Tax est. 1.5%: −$581 /mo · $6,975/yr
• Insurance: −$194
• HOA: −$100
• Vacancy / Maint / Mgmt: −$975
• Net cashflow: $355

Break-even live

Break-even rent $4,194

Max offer price $465,000

Occupancy floor 87%

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 3× units	2	1.5	$4,644
Total (3 units)			$4,644

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $116,250
• Closing costs: $13,950
• Reserves months: —
• Total cash needed: —

HOA detail

• Monthly dues: $100 · $1,200/yr

Listing history 11 events

1. 2026-06-18
   days on market $465,000 Active 14 DOM
2. 2026-06-17
   days on market $465,000 Active 13 DOM
3. 2026-06-16
   days on market $465,000 Active 12 DOM
4. 2026-06-15
   days on market $465,000 Active 11 DOM
5. 2026-06-14
   days on market $465,000 Active 9 DOM
6. 2026-06-10
   days on market $465,000 Active 6 DOM
7. 2026-06-09
   days on market $465,000 Active 5 DOM
8. 2026-06-08
   days on market $465,000 Active 4 DOM
9. 2026-06-07
   days on market $465,000 Active 3 DOM
10. 2026-06-05
    remarks 699-char remark
11. 2026-06-05
    listed $465,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥104°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 10% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $55,728
• − Mortgage interest: −$26,047
• − Property taxes: −$6,975
• − Insurance: −$2,325
• − Repairs & maintenance: −$4,458
• − Management: −$4,458
• − HOA: −$1,200
• − Depreciation: −$13,527
• Taxable loss: −$3,263
• Est. tax savings @ 24.0%: +$783
• After-tax cash flow: $5,046/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 13 photos

Excellent 95/100 None rehab

This newly constructed two-unit townhome in the Somerville Cottages community is in excellent condition with no visible repairs or maintenance needed. The property is move-in ready and offers multiple opportunities for income generation and investment.

Value-add opportunities

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics, making the property more attractive to potential buyers and renters.
• Both Landscaping improvements — Enhancing the landscaping can improve the property's curb appeal and make it more inviting for potential buyers and renters.

Renovation cost estimate screening

Value-add ROI direction

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics, making the property more attractive to potential buyers and renters. ↑
• Both Landscaping improvements — Enhancing the landscaping can improve the property's curb appeal and make it more inviting for potential buyers and renters. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Hamilton County
• NCES district ID: 4701590
• Math proficiency: 31% ▼ -10.00%
• Reading proficiency: 31% ▼ -3.00%
• Median HH income: $47,456
• Composite: 26.8/100
• National rank: #7122
• State rank: #42 of 139 in TN

Livability — Chattanooga

• Score: 78/100
• State rank: #3
• US rank: #2582

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime F Employment D+ Housing A+ Health & safety A User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Chattanooga, TN
• County: Hamilton County · 312,777 people
• City population: 131,999
• Metro: Chattanooga, TN-GA
• Population (ZIP): 4,129
• Household income: $28,708
• Rent vs Own: 79.9% rent · 20.1% own
• Severe rent burden: 406.0

Population outlook (Hamilton County) Hauer SSP2

• Today (2025): 393,784 people
• By 2030: 412,983 · +4.9%
• By 2040: 449,502 · +14.1%
• By 2050: 484,341 · +23.0%
• By 2075: 565,746 · +43.7%
• By 2100: 618,394 · +57.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (81%)
• Race & ethnicity: Black 81% Two or more races 10% White 8% Hispanic / Latino 7%
• Hispanic origin (detail): Mexican 2%
• Common ancestry: Scotch-Irish 1%
• Foreign-born: 6% · Canada
• Languages at home: 94% English-only · Spanish 6%

Political lean MEDSL · Hamilton

• 2024 margin: R (+13.1) · D 42.7% · R 55.7% · Other 1.6%
• 2008→2024 swing: -1.2pp toward R · 2008: -11.8pp · 2024: -13.1pp
• All cycles: 2024: R+13.1 2020: R+9.7 2016: R+16.6 2012: R+14.8 2008: R+11.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 1.33%
• Current HPI: 228.3522
• Rent YoY: —
• Metro: Chattanooga, TN-GA
• State GDP YoY: ▲ 2.78%
• F500 in state: 22

Industry mix (Fortune 500 HQ in TN)

Industry	F500 HQs	Revenue
▸Healthcare	3	$91B
▸Retail	3	$72B
▸Transportation / Logistics	1	$88B
▸Paper / Packaging	1	$19B
▸Insurance	1	$13B
▸Energy	1	$12B

Price history

1 event — show timeline

• 2026-06-04 Listed $465,000 GCAR