7 Peachtree

Nashville-Davidson metropolitan government (balance), TN 37210

$400,000D+

4 bd · 2.0 ba · 1,656 sqft · Built 1979 · MultiFamily · Active · 1488 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,370/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$708
• Net cashflow: $145/mo
• Annual: $1,741/yr
• Cap rate: 6.73%
• Cash-on-cash: 1.55%
• DSCR: 1.07
• 1% rule: 0.84%
• Cash to close: $112,000

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $400k.
• At list price, monthly cash flow is $145 ($2k/yr) — positive. Per door: $73/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 $337k (15.8% below list).
• It's been on market 1488 days — a 12% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $337k (15.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Davidson County (urban): math 12% / reading 19% proficiency, ranked #126 of 139 in TN (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John B. Whitsitt Elementary (math 2% / reading 8%, grade F, #896 of 952 statewide, top 96%, 484 students, 0% FRL); Glencliff High School (math 0% / reading 6%, grade F, #323 of 332 statewide, top 98%, 1,177 students, 0% FRL) — zoned schools average 0% FRL vs 66% district-wide (66 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+1.8%/yr); 171 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); 6,873 units permitted in Davidson County in 2024 (4,138 in 5+ unit buildings).
• Davidson County population projected at +42% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 13y ago; this cycle's ask has dropped $100k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $80k; list at $400k implies a 400% gain — meaningful room to come down on a strong offer.
• Cap rate 6.7% vs local median 2.9% in Nashville-Davidson metropolitan government (balance) — 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 $3,370/mo this rent would consume 80% of the median local household income ($50k/yr) (locally 1435% 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 1488 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.