118 Schrader Rd

Palmersville, TN 42079

$132,500C-

3 bd · 2.5 ba · 1,590 sqft · Built 1973 · SingleFamily · Active · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,187/mo
• Mortgage (P&I): −$695
• Tax + insurance: −$207
• HOA: −$0
• Vac / Maint / Mgmt: −$249
• Net cashflow: $36/mo
• Annual: $431/yr
• Cap rate: 6.62%
• Cash-on-cash: 1.16%
• DSCR: 1.05
• 1% rule: 0.90%
• Cash to close: $37,100

Investor read

• This is a 3-bed/2.5-bath single-family listed at $132k.
• At list price, monthly cash flow is $36 ($431/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 $119k (10.4% below list).
• It's been on market 70 days — a 6% lower offer ($125k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (10.4% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($916 loan paydown + $7k appreciation (5.7% local appreciation)).
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Graves County (rural): math 47% / reading 52% proficiency, ranked #10 of 165 in KY (top 6%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sedalia Elementary School (math 50% / reading 53%, grade C-, #91 of 676 statewide, top 14%, 364 students, 55% FRL); Graves County Middle School (math 37% / reading 52%, grade D, #36 of 217 statewide, top 18%, 621 students, 53% FRL); Graves County High School (math 35% / reading 40%, grade F, #57 of 254 statewide, top 22%, 1,096 students, 49% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: 9 units permitted in Graves County in 2024 (0 in 5+ unit buildings).
• Graves County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $37k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: 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

• It's been on market 70 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.