197 - 207 Gum Hollow Rd Unit 197 - 207

Oak Ridge, TN 37830

$1,100,000C

12 bd · 9.0 ba · — sqft · Built 1979 · MultiFamily · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,157/mo
• Mortgage (P&I): −$5,769
• Tax + insurance: −$1,900
• HOA: −$0
• Vac / Maint / Mgmt: −$2,553
• Net cashflow: $1,936/mo
• Annual: $23,229/yr
• Cap rate: 8.48%
• Cash-on-cash: 7.80%
• DSCR: 1.35
• 1% rule: 1.11%
• Cash to close: $308,000

Investor read

• This is a 6 × 2-bed/1.5-bath units multifamily listed at $1.10M. Condition is rated fair.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $323/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $1.10M).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $33k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#4 in TN, #2,605 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Oak Ridge (suburban): math 34% / reading 37% proficiency, ranked #23 of 139 in TN (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Linden Elementary (math 57% / reading 52%, grade C, #92 of 952 statewide, top 10%, 543 students, 0% FRL); Robertsville Middle School (math 32% / reading 31%, grade F, #89 of 333 statewide, top 28%, 702 students, 0% FRL); Oak Ridge High School (math 10% / reading 53%, grade F, #69 of 332 statewide, top 21%, 1,587 students, 0% FRL) — zoned schools average 0% FRL vs 40% district-wide (40 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising (+3.1%/yr); 189 active listings in the ZIP; 229 units permitted in Roane County in 2024 (0 in 5+ unit buildings).
• Roane County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.5% vs local median 3.4% in Oak Ridge — 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 $12,157/mo this rent would consume 202% of the median local household income ($72k/yr) (locally 914% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of aging
• Major: exterior siding — Weathered appearance