234 N Franklin Ave

Henderson, TN 38340

$28,500B-

4 bd · 1.0 ba · 845 sqft · Built 1900 · SingleFamily · Pending · 95 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,037/mo
• Mortgage (P&I): −$149
• Tax + insurance: −$37
• HOA: −$0
• Vac / Maint / Mgmt: −$218
• Net cashflow: $632/mo
• Annual: $7,588/yr
• Cap rate: 32.92%
• Cash-on-cash: 95.09%
• DSCR: 5.23
• 1% rule: 3.64%
• Cash to close: $7,980

Investor read

• This is a 4-bed/1.0-bath single-family listed at $28k.
• At list price, monthly cash flow is $632 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $28k).
• It's been on market 95 days — a 9% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $197 of loan paydown is wiped out by about $855 of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#150 in TN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, housing B; Watch: health & safety C-, amenities F, commute F.
• Chester County (rural): math 42% / reading 37% proficiency, ranked #15 of 139 in TN (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East Chester Elementary School (math 57% / reading 57%, grade C+, #75 of 952 statewide, top 8%, 544 students, 0% FRL); Chester County Junior High School (math 42% / reading 32%, grade F, #56 of 333 statewide, top 17%, 608 students, 0% FRL); Chester County High School (math 27% / reading 47%, grade F, #33 of 332 statewide, top 10%, 811 students, 0% FRL) — zoned schools average 0% FRL vs 49% district-wide (49 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 99 active listings in the ZIP; 18 units permitted in Chester County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $6k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $15k; list at $28k implies a 90% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~2 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.
• Cap rate 32.9% vs local median 3.6% in Henderson — 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 95 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• 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.