920 North Church St

Mountain City, TN 37683

$224,000D-

3 bd · 1.0 ba · 999 sqft · Built 1945 · SingleFamily · Active · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,520/mo
• Mortgage (P&I): −$1,175
• Tax + insurance: −$139
• HOA: −$0
• Vac / Maint / Mgmt: −$319
• Net cashflow: $-112/mo
• Annual: $-1,346/yr
• Cap rate: 5.69%
• Cash-on-cash: -2.15%
• DSCR: 0.90
• 1% rule: 0.68%
• Cash to close: $62,720

Investor read

• This is a 3-bed/1.0-bath single-family listed at $224k.
• At list price, monthly cash flow is $-112 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (8.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $152k (32.1% below list).
• It's been on market 90 days — a 6% lower offer ($211k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $152k (32.1% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#191 in TN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+; Watch: housing C-, health & safety C-, amenities F.
• Johnson County (rural): math 27% / reading 31% proficiency, ranked #69 of 139 in TN (top 50%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Mountain City Elementary (math 41% / reading 40%, grade F, #219 of 952 statewide, top 24%, 436 students, 0% FRL); Johnson Co Middle School (math 28% / reading 31%, grade F, #107 of 333 statewide, top 33%, 284 students, 0% FRL); Johnson Co High School (math 17% / reading 32%, grade F, #129 of 332 statewide, top 43%, 643 students, 0% FRL) — zoned schools average 0% FRL vs 59% district-wide (59 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 131 active listings in the ZIP; 6 units permitted in Johnson County in 2024 (0 in 5+ unit buildings).
• Johnson County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $27k; list at $224k implies a 739% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.7% vs local median 2.1% in Mountain City — 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 90 days. Have you received any prior offers? Is the seller open to a 32% concession, seller financing, or rate buy-down credit?
• Built in 1945 — 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.
• 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?
• 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.