3239 Tower Dr

Clarksville, TN 37042

$969,000D+

64 bd · 8.0 ba · 6,480 sqft · Built 1996 · MultiFamily · Pending · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,332/mo
• Mortgage (P&I): −$5,082
• Tax + insurance: −$864
• HOA: −$0
• Vac / Maint / Mgmt: −$1,750
• Net cashflow: $636/mo
• Annual: $7,636/yr
• Cap rate: 7.08%
• Cash-on-cash: 2.81%
• DSCR: 1.13
• 1% rule: 0.86%
• Cash to close: $271,320

Investor read

• This is a 8 × 1-bed/1-bath units multifamily listed at $969k.
• At list price, monthly cash flow is $636 ($8k/yr) — positive. Per door: $80/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $833k (14.0% below list).
• It's been on market 50 days — a 3% lower offer ($940k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $833k (14.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $29k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#1 in TN, #798 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment C-, crime D+.
• Montgomery County (urban): math 25% / reading 31% proficiency, ranked #65 of 139 in TN (top 47%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Hazelwood Elementary (math 27% / reading 30%, grade F, #472 of 952 statewide, top 50%, 924 students, 0% FRL); Northeast Middle (math 16% / reading 20%, grade F, #211 of 333 statewide, top 64%, 1,026 students, 0% FRL); Northeast High (math 6% / reading 35%, grade F, #175 of 332 statewide, top 53%, 1,728 students, 0% FRL) — zoned schools average 0% FRL vs 40% district-wide (40 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+1.3%/yr); 895 active listings in the ZIP; 2,583 units permitted in Montgomery County in 2024 (617 in 5+ unit buildings).
• Montgomery County population projected at +49% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 11 sale attempts since 16y 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 $535k; list at $969k implies a 81% gain — meaningful room to come down on a strong offer.
• Cap rate 7.1% vs local median 3.5% in Clarksville — 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.
• At $8,332/mo this rent would consume 142% of the median local household income ($70k/yr) (locally 2093% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 50 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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.
• 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.