1035 Rube Scott Rd

La Grange, TN 38039

$54,900B

2 bd · 1.0 ba · 1,008 sqft · Built 1970 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $931/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$40
• HOA: −$0
• Vac / Maint / Mgmt: −$196
• Net cashflow: $408/mo
• Annual: $4,893/yr
• Cap rate: 15.21%
• Cash-on-cash: 31.83%
• DSCR: 2.42
• 1% rule: 1.70%
• Cash to close: $15,372

Investor read

• This is a 2-bed/1.0-bath single-family listed at $55k.
• At list price, monthly cash flow is $408 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($931 rent vs $55k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($380 loan paydown + $1k appreciation (2.4% local appreciation)).
• Location reads 52/100 on livability (#394 in TN) — a working-class tenant base; expect higher turnover. Strengths: crime B+, housing B; Watch: employment C-, amenities F, commute F.
• Fayette County Public Schools (rural): math 7% / reading 13% proficiency, ranked #134 of 139 in TN (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: La Grange Moscow Elementary (math 8% / reading 8%, grade F, #848 of 952 statewide, top 91%, 218 students, 0% FRL); Fayette Ware Comprehensive High School (math 2% / reading 17%, grade F, #279 of 332 statewide, top 86%, 833 students, 0% FRL) — zoned schools average 0% FRL vs 70% district-wide (70 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 12 active listings in the ZIP; 222 units permitted in Fayette County in 2024 (0 in 5+ unit buildings).
• Fayette County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (2.4% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.
• 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

• 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 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?
• 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.