624 Lily Way

Cosby, TN 37722

$200,000B+

1 bd · 1.0 ba · 980 sqft · Built 2023 · Other · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,520/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$333
• HOA: −$83
• Vac / Maint / Mgmt: −$1,369
• Net cashflow: $3,686/mo
• Annual: $44,228/yr
• Cap rate: 28.41%
• Cash-on-cash: 78.98%
• DSCR: 4.51
• 1% rule: 3.26%
• Cash to close: $56,000

Investor read

• This is a 1-bed/1.0-bath other listed at $200k.
• At list price, monthly cash flow is $4k ($44k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $200k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $21k of equity ($1k loan paydown + $20k appreciation (10.0% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Cocke County (rural): math 21% / reading 21% proficiency, ranked #112 of 139 in TN (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 168 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 13 units permitted in Cocke County in 2024 (0 in 5+ unit buildings).
• Cocke County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $5k; list at $200k implies a 3900% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $56k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 28.4% vs local median 2.3% in Cosby — 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

• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.