2134 Fairfax Ave

Nashville-Davidson metropolitan government (balance), TN 37212

$1,750,000F

36 bd · 36.0 ba · 4,968 sqft · Built 1965 · MultiFamily · Active · 371 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,972/mo
• Mortgage (P&I): −$9,177
• Tax + insurance: −$2,917
• HOA: −$210
• Vac / Maint / Mgmt: −$3,144
• Net cashflow: $-476/mo
• Annual: $-5,712/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.17%
• DSCR: 0.95
• 1% rule: 0.86%
• Cash to close: $490,000

Investor read

• This is a 9 × 1-bed/1.0-bath units multifamily listed at $1.75M.
• At list price, monthly cash flow is $-476 ($-6k/yr) — negative. Per door: $-53/mo.
• To cash-flow at today's rent, offer at most $1.68M (3.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.50M (14.4% below list).
• It's been on market 371 days — a 12% lower offer ($1.54M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.50M (14.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $52k of value loss. Plan a longer hold.
• Location reads: area grade F — 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: Eakin Elementary (math 42% / reading 47%, grade F, #164 of 952 statewide, top 19%, 524 students, 0% FRL); West End Middle (math 14% / reading 26%, grade F, #198 of 333 statewide, top 61%, 343 students, 0% FRL); Hillsboro High (math 2% / reading 33%, grade F, #214 of 332 statewide, top 64%, 1,227 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 soft (-1.9%/yr); 192 active listings in the ZIP; solid renter incomes; 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.
• 19 sale attempts since 3y ago; this cycle's ask is 155456% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% 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 $14,972/mo this rent would consume 189% of the median local household income ($95k/yr) (locally 1000% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 371 days. Have you received any prior offers? Is the seller open to a 14% 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 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.