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341 Old Trenton Rd
Clarksville, TN 37040
Clarksville Multifamily Opportunity · Land For Sale · 4.42 AC
Executive Summary
Location: 341-343 Old Trenton Rd. Clarksville, TN 37040
Unlock the Potential:
This 4.42-acre parcel offers a unique opportunity for developers and investors. With its R-2A zoning, the land is primed for a variety of development options, including:
Subdivision: Create multiple single-family home lots or a cluster development with shared green spaces.
Multi-Family Development: Develop townhomes or apartments to cater to the growing demand for rental housing.
Mixed-Use Development: Look to rezone to combine residential, and commercial uses for a dynamic project.
Purchase Price: $750,000
Down Payment: $200,000
Loan Amount: $550,000
Interest Rate: 3.5%
Loan Term: 5-year balloon
Rehab Costs: $25,000 per unit for 2 units = $50,000 total
Total Investment: $250,000 (down payment) + $50,000 (rehab) = $300,000
Projected Sale Price per Unit: $289,900
Projected Profit per Unit: $74,000
Calculating Total Revenue from Sales:
Total Revenue = 18 units * $289,900/unit = $5,218,200
Calculating Total Profit:
Total Profit = (18 units * $74,000/unit) - Initial Investment
Total Profit = $1,332,000 - $300,000 = $1,032,000
Return on Investment (ROI):
ROI = (Total Profit / Initial Investment) * 100%
ROI = ($1,032,000 / $300,000) * 100% ˜ 344%
Note: This ROI calculation is a simplified estimate and doesn't account for potential holding costs, taxes, and other unforeseen expenses. A more detailed analysis would involve considering factors like construction costs, marketing expenses, legal fees, and potential delays.
Additional Considerations:
Market Conditions: The real estate market can fluctuate, impacting property values and rental income.
Construction Costs: Building costs can vary based on factors such as labor costs, material prices, and local regulations.
Financing Costs: Interest rates and loan terms can significantly impact the overall profitability of the project.
Risk Factors: There are various risks associated with real estate development, including construction risks, regulatory hurdles, and economic downturns.
It's crucial to conduct a thorough feasibility study and consult with real estate professionals to assess the project's viability and potential risks.
PROPERTY FACTS
1 Lot Available
Lot
| Price | £594,059 | Lot Size | 4.42 AC |
| Price Per AC | £134,403 |
| Price | £594,059 |
| Price Per AC | £134,403 |
| Lot Size | 4.42 AC |
Prime Development Opportunity: 4.42 Acres, R-2A Zoning Off Market Opportunity. Location: 341-343 Old Trenton Rd. Clarksville, TN 37040 Unlock the Potential: This 4.42-acre parcel offers a unique opportunity for developers and investors. With its
Description
Key Features: Prime Location: Located in a desirable area with easy access to amenities. Flexible Zoning: R-2 zoning allows for diverse development options. look to add a Variance R-2A to build more dence sf. Development Potential: The large lot size and strategic location offer significant upside. Investment Opportunity: Explore creative financing options to maximize returns. Utilities: Water, Sewer, & Electric are on site with cost exponential savings If you were looking to fix up the 5th and 6th unit and hold. Purchase Price: $750,000 Down Payment: $200,000 Loan Amount: $550,000 Annual Proforma Rental Income: $5,800/month * 12 months/year = $69,600 Interest Rate: 3.5% Loan Term: 5-year balloon Rehab Costs: $25,000 Calculating Annual Debt Service: Monthly Payment: $550,000 * 3.5% / 12 ˜ $1604.17 Annual Debt Service: $1604.17/month * 12 months/year ˜ $19,250 Calculating Annual Cash Flow: Annual Cash Flow = Annual Rental Income - Annual Debt Service Annual Cash Flow = $69,600 - $19,250 = $50,350 Calculating Initial Investment: Initial Investment = Down Payment + Rehab Costs Initial Investment = $200,000 + $25,000 = $225,000 Calculating Cash-on-Cash Return: Cash-on-Cash Return = (Annual Cash Flow / Initial Investment) * 100% Cash-on-Cash Return = ($50,350 / $225,000) * 100% ˜ 22.38% Calculating Cap Rate: Cap Rate = NOI / Property Value Cap Rate = $44,400 / $750,000 ˜ 5.92% Interpretation: Even with the additional $25,000 investment in rehab of 2 vacant units, the cash-on-cash return remains strong at 22.38%. This indicates a solid return on investment.
zoning
| Zoning Code | R-2 (Single Family Residential Development,) |
| R-2 (Single Family Residential Development,) |
