22 Red Oak Cir

Big Sandy, TN 38221

$115,000D

3 bd · 2.0 ba · 840 sqft · Built 1997 · Other · Active · 266 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $959/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $-37/mo
• Annual: $-447/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• 1% rule: 0.83%
• Cash to close: $32,200

Investor read

• This is a 3-bed/2.0-bath other listed at $115k.
• At list price, monthly cash flow is $-37 ($-447/yr) — negative.
• To cash-flow at today's rent, offer at most $110k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $96k (16.6% below list).
• It's been on market 266 days — a 12% lower offer ($101k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $96k (16.6% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($795 loan paydown + $7k appreciation (6.0% local appreciation)).
• Location reads 58/100 on livability (#315 in TN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: crime F, amenities F, commute F.
• Benton County (town): math 31% / reading 28% proficiency, ranked #66 of 139 in TN (top 48%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Camden Jr High School (math 37% / reading 23%, grade F, #98 of 333 statewide, top 32%, 371 students, 0% FRL); Camden Central High School (math 8% / reading 37%, grade F, #156 of 332 statewide, top 49%, 521 students, 0% FRL) — zoned schools average 0% FRL vs 54% district-wide (54 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 93 active listings in the ZIP; 6 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (6.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire 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 266 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.