1106 Fremont Dr

Johnson City, TN 37601

$2,400,000C

None bd · 21.0 ba · 14,280 sqft · Built 1973 · MultiFamily · Active · 191 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $23,591/mo
• Mortgage (P&I): −$12,586
• Tax + insurance: −$1,642
• HOA: −$0
• Vac / Maint / Mgmt: −$4,954
• Net cashflow: $4,409/mo
• Annual: $52,905/yr
• Cap rate: 8.50%
• Cash-on-cash: 7.87%
• DSCR: 1.35
• 1% rule: 0.98%
• Cash to close: $672,000

Investor read

• This is a 25 × 1-bed/1-bath units multifamily listed at $2.40M.
• At list price, monthly cash flow is $4k ($53k/yr) — positive. Per door: $176/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.36M (1.7% below list).
• It's been on market 191 days — a 12% lower offer ($2.11M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.11M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $17k of loan paydown is wiped out by about $72k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#8 in TN, #3,349 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, health & safety A; Watch: crime D, commute F, employment F.
• Johnson City (urban): math 46% / reading 47% proficiency, ranked #9 of 139 in TN (top 6%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mountain View Elementary (math 22% / reading 27%, grade F, #546 of 952 statewide, top 61%, 498 students, 0% FRL); Liberty Bell Middle School (math 43% / reading 38%, grade F, #42 of 333 statewide, top 13%, 898 students, 0% FRL) — zoned schools average 0% FRL vs 44% district-wide (44 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 32% at this address vs 46% district-wide (-14 pts) — the specific schools serving this property underperform the Johnson City average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+4.9%/yr); 209 active listings in the ZIP; 1,155 units permitted in Washington County in 2024 (437 in 5+ unit buildings).
• Washington County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $1.08M; list at $2.40M implies a 121% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.9% rent growth), your $672k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 8.5% vs local median 3.1% in Johnson City — 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.
• At $23,591/mo this rent would consume 559% of the median local household income ($51k/yr) (locally 1464% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 191 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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.
• Crime grade is D 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.