1431 Roarks Cove Rd

Sewanee, TN 37375

$265,000D-

2 bd · 2.0 ba · 992 sqft · Built 2006 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,543/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$172
• HOA: −$0
• Vac / Maint / Mgmt: −$324
• Net cashflow: $-342/mo
• Annual: $-4,109/yr
• Cap rate: 4.74%
• Cash-on-cash: -5.54%
• DSCR: 0.75
• 1% rule: 0.58%
• Cash to close: $74,200

Investor read

• This is a 2-bed/2.0-bath single-family listed at $265k.
• At list price, monthly cash flow is $-342 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $205k (22.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $154k (41.8% below list).
• It's been on market 15 days — a 2% lower offer ($261k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $154k (41.8% below list) — sets the bar for 1% rule.
• In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#9 in TN, #3,415 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A, schools A-; Watch: amenities D, commute F.
• Franklin County (town): math 18% / reading 22% proficiency, ranked #111 of 139 in TN (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 36 active listings in the ZIP; 422 units permitted in Franklin County in 2024 (5 in 5+ unit buildings).
• Franklin County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 11 sale attempts since 5y ago 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.
• Current owner paid $148k; list at $265k implies a 80% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$46k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• 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.