434 D Harvey Rd

Flat Top Mountain, TN 37338

$349,000D-

4 bd · 2.0 ba · 2,896 sqft · Built 1999 · SingleFamily · Active · 229 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,331/mo
• Mortgage (P&I): −$1,830
• Tax + insurance: −$220
• HOA: −$0
• Vac / Maint / Mgmt: −$279
• Net cashflow: $-999/mo
• Annual: $-11,991/yr
• Cap rate: 2.86%
• Cash-on-cash: -12.27%
• DSCR: 0.45
• 1% rule: 0.38%
• Cash to close: $97,720

Investor read

• This is a 4-bed/2.0-bath single-family listed at $349k.
• At list price, monthly cash flow is $-999 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (50.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (61.9% below list).
• It's been on market 229 days — a 12% lower offer ($307k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $133k (61.9% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#193 in TN) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B+; Watch: schools D+, cost of living D, amenities F.
• Sequatchie County (rural): math 24% / reading 24% proficiency, ranked #95 of 139 in TN (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 51 active listings in the ZIP; 37 units permitted in Sequatchie County in 2024 (0 in 5+ unit buildings).
• Sequatchie County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk — 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 229 days. Have you received any prior offers? Is the seller open to a 62% 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 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?
• 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.
• 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.