6405 Sea Haven Dr

Chattanooga, TN 37343

$346,500D+

4 bd · 3.0 ba · 2,390 sqft · Built 1979 · SingleFamily · Active · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,792/mo
• Mortgage (P&I): −$1,817
• Tax + insurance: −$259
• HOA: −$43
• Vac / Maint / Mgmt: −$586
• Net cashflow: $87/mo
• Annual: $1,048/yr
• Cap rate: 6.60%
• Cash-on-cash: 1.08%
• DSCR: 1.05
• 1% rule: 0.81%
• Cash to close: $97,020

Investor read

• This is a 4-bed/3.0-bath single-family listed at $346k.
• At list price, monthly cash flow is $87 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $279k (19.4% below list).
• It's been on market 97 days — a 9% lower offer ($315k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $279k (19.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#3 in TN, #2,582 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D+, crime F.
• Hamilton County (urban): math 31% / reading 31% proficiency, ranked #42 of 139 in TN (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mcconnell Elementary (math 46% / reading 40%, grade F, #187 of 952 statewide, top 20%, 457 students, 0% FRL); Loftis Middle School (math 48% / reading 37%, grade D-, #33 of 333 statewide, top 10%, 593 students, 0% FRL); Hixson High School (math 22% / reading 32%, grade F, #104 of 332 statewide, top 33%, 935 students, 0% FRL) — zoned schools average 0% FRL vs 52% district-wide (52 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+2.4%/yr); 466 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 2,133 units permitted in Hamilton County in 2024 (405 in 5+ unit buildings).
• Hamilton County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 28y ago; this cycle's ask has dropped $38k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $142k; list at $346k implies a 144% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 3.4% in Chattanooga — 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.
• This rent runs 41% of the median local income ($82k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 97 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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.
• 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?
• 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?