87 Ballard Hollow Rd

Taft, TN 38488

$120,000F

None bd · None ba · 1,232 sqft · Built 2002 · Manufactured · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $0/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$155
• HOA: −$0
• Vac / Maint / Mgmt: −$0
• Net cashflow: $-784/mo
• Annual: $-9,410/yr
• Cap rate: -0.88%
• Cash-on-cash: -25.63%
• DSCR: -0.14
• 1% rule: 0.00%
• Cash to close: $33,600

Investor read

• This is a manufactured listed at $120k.
• At list price, monthly cash flow is $-784 ($-9k/yr) — negative.
• Rent doesn't cover operating costs at any purchase price — skip.
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $12k of equity ($830 loan paydown + $11k appreciation (9.3% local appreciation)).
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Lincoln County (rural): math 35% / reading 37% proficiency, ranked #24 of 139 in TN (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Blanche School (327 students, 0% FRL); Lincoln County High School (math 15% / reading 47%, grade F, #72 of 332 statewide, top 21%, 1,201 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 22 active listings in the ZIP; 173 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $40k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 3, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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.