5758 Taggart Dr

Chattanooga, TN 37343

$389,000F

6 bd · 10.0 ba · 2,872 sqft · Built 1970 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,135/mo
• Mortgage (P&I): −$2,040
• Tax + insurance: −$278
• HOA: −$0
• Vac / Maint / Mgmt: −$448
• Net cashflow: $-632/mo
• Annual: $-7,580/yr
• Cap rate: 4.34%
• Cash-on-cash: -6.96%
• DSCR: 0.69
• 1% rule: 0.55%
• Cash to close: $108,920

Investor read

• This is a 6-bed/10.0-bath multifamily listed at $389k.
• At list price, monthly cash flow is $-632 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $277k (28.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $214k (45.1% below list).
• It's been on market 28 days — a 2% lower offer ($383k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $214k (45.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k 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: Hixson Elementary (math 24% / reading 20%, grade F, #601 of 952 statewide, top 66%, 402 students, 0% FRL); Hixson Middle School (math 27% / reading 20%, grade F, #162 of 333 statewide, top 50%, 607 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); 459 active listings in the ZIP; 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.
• Climate carrying-cost: extreme-heat days projected 8→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.3% vs local median 3.4% in Chattanooga — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 31% of the median local income ($82k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1970 — 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?
• 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.