202 Magnolia Ave

Jasper, TN 37347

$239,900C

3 bd · 1.0 ba · 1,510 sqft · Built 1956 · SingleFamily · Active · 85 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,300/mo
• Mortgage (P&I): −$1,258
• Tax + insurance: −$209
• HOA: −$0
• Vac / Maint / Mgmt: −$483
• Net cashflow: $350/mo
• Annual: $4,200/yr
• Cap rate: 8.38%
• Cash-on-cash: 7.44%
• DSCR: 1.33
• 1% rule: 0.96%
• Cash to close: $67,172

Investor read

• This is a 3-bed/1.0-bath single-family listed at $240k.
• At list price, monthly cash flow is $350 ($4k/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 $230k (4.1% below list).
• It's been on market 85 days — a 6% lower offer ($226k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $226k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#287 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A-, housing B; Watch: amenities F, commute F, employment D-.
• Marion County (town): math 24% / reading 25% proficiency, ranked #89 of 139 in TN (top 64%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Jasper Elementary School (math 36% / reading 33%, grade F, #319 of 952 statewide, top 37%, 629 students, 0% FRL); Jasper Middle School (math 20% / reading 20%, grade F, #198 of 333 statewide, top 61%, 491 students, 0% FRL); Marion Co High School (math 8% / reading 42%, grade F, #125 of 332 statewide, top 38%, 491 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: flood insurance adds $66/mo; built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 417 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 225 units permitted in Marion County in 2024 (0 in 5+ unit buildings).
• Climate carrying-cost: severe flood risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.4% vs local median 1.7% in Jasper — 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.

Questions for listing agent

• It's been on market 85 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1956 — 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?
• 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.
• 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.