219 Henryville Rd

Ethridge, TN 38456

$85,000C-

1 bd · None ba · 400 sqft · Built 1889 · SingleFamily · Pending · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $758/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$208
• HOA: −$0
• Vac / Maint / Mgmt: −$159
• Net cashflow: $-55/mo
• Annual: $-659/yr
• Cap rate: 6.46%
• Cash-on-cash: 0.58%
• DSCR: 1.03
• 1% rule: 0.89%
• Cash to close: $23,800

Investor read

• This is a 1-bed/?-bath single-family listed at $85k. Condition is rated excellent.
• At list price, monthly cash flow is $-55 ($-659/yr) — negative.
• To cash-flow at today's rent, offer at most $77k (9.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $76k (10.8% below list).
• It's been on market 49 days — a 3% lower offer ($82k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $76k (10.8% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($588 loan paydown + $8k appreciation (10.0% local appreciation)).
• Location reads 58/100 on livability (#308 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Lawrence County (rural): math 29% / reading 29% proficiency, ranked #67 of 139 in TN (top 48%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: David Crockett Elementary (math 30% / reading 36%, grade F, #361 of 952 statewide, top 38%, 462 students, 0% FRL); E O Coffman Middle School (math 23% / reading 26%, grade F, #154 of 333 statewide, top 48%, 582 students, 0% FRL); Lawrence Co High School (math 26% / reading 23%, grade F, #129 of 332 statewide, top 43%, 1,143 students, 0% FRL) — zoned schools average 0% FRL vs 50% district-wide (50 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $66/mo; built in 1889 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; 27 units permitted in Lawrence County in 2024 (0 in 5+ unit buildings).
• Lawrence County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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.

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?
• It's been on market 49 days. Have you received any prior offers? Is the seller open to a 11% concession, seller financing, or rate buy-down credit?
• Built in 1889 — 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.
• Schools are D-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?
• 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.