117 Ridge St

Surgoinsville, TN 37873

$239,900C

5 bd · 2.0 ba · 1,540 sqft · Built 1946 · SingleFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,351/mo
• Mortgage (P&I): −$1,258
• Tax + insurance: −$187
• HOA: −$0
• Vac / Maint / Mgmt: −$494
• Net cashflow: $412/mo
• Annual: $4,948/yr
• Cap rate: 8.36%
• Cash-on-cash: 7.37%
• DSCR: 1.33
• 1% rule: 0.98%
• Cash to close: $67,172

Investor read

• This is a 5-bed/2.0-bath single-family listed at $240k.
• At list price, monthly cash flow is $412 ($5k/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 $235k (2.0% below list).
• It's been on market 21 days — a 2% lower offer ($236k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $235k (2.0% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($2k loan paydown + $13k appreciation (5.3% local appreciation)).
• Location reads 60/100 on livability (#270 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B; Watch: amenities F, commute F, employment D-.
• Hawkins County (rural): math 23% / reading 26% proficiency, ranked #93 of 139 in TN (top 67%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Surgoinsville Elementary (math 27% / reading 37%, grade F, #369 of 952 statewide, top 42%, 328 students, 0% FRL); Surgoinsville Middle School (math 31% / reading 29%, grade F, #98 of 333 statewide, top 32%, 255 students, 0% FRL); Volunteer High School (math 19% / reading 37%, grade F, #101 of 332 statewide, top 30%, 1,045 students, 0% FRL) — zoned schools average 0% FRL vs 57% district-wide (57 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; 151 units permitted in Hawkins County in 2024 (0 in 5+ unit buildings).
• Hawkins County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $187k; 28% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.3% appreciation + 3.0% rent growth), your $67k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1946 — 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?
• 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.