219 Spring St

Ripley, TN 38063

$27,000B+

2 bd · 1.0 ba · 616 sqft · Built 1934 · SingleFamily · Pending · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $852/mo
• Mortgage (P&I): −$142
• Tax + insurance: −$32
• HOA: −$0
• Vac / Maint / Mgmt: −$179
• Net cashflow: $499/mo
• Annual: $5,988/yr
• Cap rate: 28.47%
• Cash-on-cash: 79.21%
• DSCR: 4.52
• 1% rule: 3.16%
• Cash to close: $7,560

Investor read

• This is a 2-bed/1.0-bath single-family listed at $27k.
• At list price, monthly cash flow is $499 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($852 rent vs $27k).
• It's been on market 41 days — a 3% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($187 loan paydown + $3k appreciation (10.0% local appreciation)).
• Location reads 58/100 on livability (#310 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime F, amenities F, commute F.
• Lauderdale County (town): math 12% / reading 16% proficiency, ranked #132 of 139 in TN (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Ripley Elementary (math 9% / reading 14%, grade F, #805 of 952 statewide, top 85%, 480 students, 0% FRL); Ripley High School (math 8% / reading 17%, grade F, #259 of 332 statewide, top 79%, 658 students, 0% FRL) — zoned schools average 0% FRL vs 70% district-wide (70 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1934 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 96 active listings in the ZIP; 24 units permitted in Lauderdale County in 2024 (0 in 5+ unit buildings).
• Lauderdale County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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.

Questions for listing agent

• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1934 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.