Evaluating a multi family in Tennessee

[Tom Saysithideth]

Hello BP Family,

I am looking for help evaluating a multi family in Tennessee. Here are some numbers In estimated based on current information gathered.

Property price: $300000

Total gross monthly rent: $3400

Annual property tax: $800

Home Insurance: $1200

Vacancy: 5%

Repairs: 5%

CapEx: 5%

Property Mgt: 10%

Mortgage: $1514

Down payment: 25%

Concerns:

- this property sold for a fraction of the current price 4 years ago, the jump in price is worrisome

- the gross rent for the property almost hit the 3% rule 4 years ago, which might indicate a rough area

- what are some tried and true methods to run comps for multi family units?

Summary: the primary goal is cash flow on this unit, but the exponential growth in price is unsettling and the rate of growth does not consistent with past growth 3 years and older.

Any words of advice are appreciated.

Thank you,

Tom