Tennessee DSCR, Hard Money, Fix & Flip, Construction & Multifamily Loans
Tennessee (TN) Underwriting Snapshot (BLUF): Wholesale business-purpose investment property loans in Tennessee utilize Non-Judicial (Deed of Trust — 21-Day Publication) security instruments, with an average non-homestead effective property tax rate of 0.64%, a median 1–4 unit investment home price of $365,000 (median rent $2,680/mo), and 5+ unit multifamily market rents averaging $1,560/door. Arranged by Loan Daddy LLC (NMLS #2827624).
SECURITY INSTRUMENT
Non-Judicial (Deed of Trust — 21-Day Publication)EFFECTIVE PROPERTY TAX
0.64% Avg ($195/mo)MEDIAN 1–4 UNIT PRICE & RENT
$365,000 · $2,680/mo5+ UNIT MULTIFAMILY RENT
$1,560/door/moTennessee Pre-Populated Underwriting Terminal
1–4 Unit PITIA vs. 5–25+ Unit Commercial NOI Simulator
Loan Daddy LLC · NMLS #2827624 · AZ CMB #CMB-2016143 · CA CFL #60DBO-218873 · Canonical Integer _cents & _bps Engine
Price/Door: $365,000·Loan/Door: $273,750·Avg Rent/Door: $2,680/mo
Prepayment Stepdown Structure
Amortization & FICO Tier
Calculated DSCR Coverage Ratio
1.29xCanonical:
129 bps · 7500 bps LTV · 6625 bps RateTier-1 Institutional (1.25x+ — Max LTV & Best Pricing)
Loan Amount (75% LTV)$273,75027,375,000 _cents
Monthly P&I Debt Service$1,753/mo@ 6.625% Note Rate
Total Monthly PITIA$2,075/moTax: $195 · Ins: $128
Net Monthly Cash Flow+$605/mo$7,257/yr net
Wholesale PPE Multi-Option Execution Comparison (Borrower-Paid 2.000% Default · 39 Wholesale Lenders)
| Execution Option | Prepay Structure | Est. Note Rate | Prepay Price Credit | Monthly Debt Service | DSCR Ratio |
|---|---|---|---|---|---|
| Option A: Lowest Rate (60-Mo Stepdown) | 5-4-3-2-1 | 6.625% | -100 bps (-1.000 pt) | $2,075/mo | 1.29x |
| Option B: Balanced Par (36-Mo Stepdown) | 3-2-1 | 6.875% | -75 bps (-0.750 pt) | $2,121/mo | 1.26x |
| Option C: Max Cash Flow (10-Yr Interest-Only) | 3-2-1 IO | 7.000% | +38 bps IO LLPA | $1,919/mo | 1.40x |
Many DSCR lenders focus on the property's rent, not your tax returns. Not all applicants will qualify; terms vary by lender.
Tennessee Cities with Population ≥ 50,000 (13 Markets)
Click any Tennessee city below to open its localized DSCR & Commercial Multifamily underwriting desk with county property tax rates, median rent benchmarks, and a pre-populated city deal calculator:
| City (TN) | County | 2026 Est. Pop | Effective Tax Rate | Median 1–4 Unit Price | Median Monthly Rent | 5+ Unit Rent/Door |
|---|---|---|---|---|---|---|
| Memphis, TN → | SHELBY County County | 712,261 | 0.64% | $455,000 | $3,300/mo | $1,925/door |
| Nashville-Davidson, TN → | Nashville-Davidson Metro County County | 691,566 | 0.61% | $420,000 | $3,100/mo | $1,800/door |
| Knoxville, TN → | KNOX County County | 199,764 | 0.64% | $420,000 | $3,050/mo | $1,775/door |
| Chattanooga, TN → | HAMILTON County County | 188,969 | 0.69% | $415,000 | $3,000/mo | $1,750/door |
| Clarksville, TN → | MONTGOMERY County County | 155,169 | 0.69% | $415,000 | $3,000/mo | $1,750/door |
| Murfreesboro, TN → | RUTHERFORD County County | 127,578 | 0.61% | $320,000 | $2,400/mo | $1,400/door |
| Franklin, TN → | WILLIAMSON County County | 75,086 | 0.63% | $345,000 | $2,550/mo | $1,475/door |
| Jackson, TN → | MADISON County County | 73,777 | 0.67% | $380,000 | $2,750/mo | $1,600/door |
| Johnson City, TN → | WASHINGTON County County | 70,984 | 0.6% | $340,000 | $2,500/mo | $1,450/door |
| Bartlett, TN → | Bartlett Metro County County | 63,466 | 0.68% | $365,000 | $2,650/mo | $1,550/door |
| Hendersonville, TN → | SUMNER County County | 58,934 | 0.69% | $365,000 | $2,700/mo | $1,550/door |
| Kingsport, TN → | SULLIVAN County County | 57,729 | 0.65% | $355,000 | $2,600/mo | $1,525/door |
| Collierville, TN → | SHELBY County County | 51,593 | 0.64% | $370,000 | $2,700/mo | $1,575/door |