5 Units Clarksville
5-Unit Townhome | 100% Occupied | 8.02% Cap Rate | $4,300/mo Rents | Fresh Mechanicals
Marketing description
1531 E Knollwood Circle — 5-Unit Townhome Investment | Clarksville, TN
Turnkey multifamily opportunity in established Knollwood Hills subdivision. This 5-unit brick townhome was built in 1989, spans 4,368 SF across two stories, and sits on 0.55 acres in a low-flood-risk (Zone X) location within Clarksville city limits.
The property has undergone significant capital improvements in 2025, making it one of the most mechanically updated small multifamily offerings currently on the Clarksville market. The HVAC system was fully replaced in November 2025 ($6,750), the water heater was replaced in May 2025 ($1,464), and all 5 units received appliance upgrades, plumbing fixture updates, and cosmetic rehab during a 4-unit turnover cycle. Total 2025 capital expenditure: $13,171 — fully absorbed by the current seller. A new buyer inherits fresh mechanicals with 15–20 years of remaining useful life and near-zero deferred maintenance.
All 5 units are occupied at seller-confirmed market rents: $825–$900/mo (avg $860/unit), generating $4,300/mo ($51,600/yr GPR). Four of five units signed new 12-month leases in 2025 post-rehab. At the $599,900 asking price, the stabilized pro forma yields a 5.57% cap rate, $33,410 NOI, and $16,562/yr positive cash flow after estimated debt service (1.98× DSCR).
Note on 2025 Financials: The 2025 trailing P&L reflects $13,171 in one-time capex and 4 concurrent unit turnovers — not recurring operational costs. Stripping capex, stabilized operating expenses normalize to $16,210/yr (32.7% expense ratio), consistent with professionally managed Clarksville multifamily. The property is now fully stabilized.
Professional management is in place through PMI Clarksville at 7% fee (below market rate of 8–10%). Fiber internet is available from three providers (AT&T 5 Gbps, CDE Lightband, Spectrum). The absentee owner is motivated — this is a clean exit after a full rehab cycle, not a distressed sale.
Comp-supported pricing: 9 verified 4–6 unit sales in Clarksville (2023–2026) show a median of $141/SF, supporting a comp value of $615,888 for this 4,368 SF asset. At $599,900, this listing is priced below the comp-derived value. The property is zoned R-4 Multi-Family Residential, assessed commercial at 40%, and currently generates positive leverage with estimated debt service coverage of 1.98×.
Investment highlights
2025 CapEx Complete — New Buyer Inherits Fresh Mechanicals: HVAC system fully replaced November 2025 ($6,750); water heater replaced May 2025 ($1,464); appliances replaced/upgraded (stoves, dishwasher, range hood); plumbing fixtures updated (toilets, flanges, tub drain, sinks); exterior roof fascia repaired; GFCI electrical updated. Total 2025 capital investment: $13,171. These are 15–20 year items — near-zero deferred maintenance risk day one.
100% Occupied — All 5 Units Stabilized at Market Rents: Current rent roll $4,300/mo ($51,600 GPR/yr) with 5 tenants at $825–$900/mo (avg $860/unit). 4 of 5 units signed fresh 12-month leases in 2025 following full turnover and rehab — stabilized and collecting at market rate.
Strong Stabilized Returns: 5.57% Cap Rate at $599,900 ask price. Stabilized NOI of $33,410/yr. 1.98× DSCR with positive cash flow of $16,562/yr after estimated debt service. EGI of $49,620 after 5% vacancy reserve.
Normalized Expense Ratio of 32.7%: 2025 actual expenses were inflated to 64.4% by one-time capex ($13,171) and 4-unit turnover costs. Strip the capex and stabilized operating expenses normalize to $16,210/yr (32.7% of EGI) — in line with well-managed Clarksville multifamily.
Comp-Supported Pricing: 9 verified comparable sales (CoStar + Zillow, 2023–2026) show 4–6 unit Clarksville multifamily trading at $139–$153/SF. At $141/SF median, the subject's 4,368 SF supports a value of $615,888. Listing at $599,900 represents a comp discount and below-market entry for a stabilized, capex-complete asset.
Professional Management in Place: PMI Clarksville managing at 7% fee — below the 8–10% industry standard. Turnkey operation, no self-management required. Fiber internet available (AT&T 5 Gbps, CDE Lightband 1 Gbps, Spectrum) — strong tenant amenity.
Absentee Seller — Motivated Disposition: Current owner is an out-of-state LLC (Parker, CO). After heavy 2025 capex and turnovers, seller is motivated to transfer a now-stabilized, fully rehabbed asset. A buyer steps into day-one cash flow with all capital improvements already funded by the seller.
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