631 Chancellor St

Coffee Springs, AL 36316

$139,500C

3 bd · 1.0 ba · 1,352 sqft · Built 1960 · SingleFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,164/mo
• Mortgage (P&I): −$732
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$244
• Net cashflow: $95/mo
• Annual: $1,135/yr
• Cap rate: 7.11%
• Cash-on-cash: 2.91%
• DSCR: 1.13
• 1% rule: 0.83%
• Cash to close: $39,060

Investor read

• This is a 3-bed/1.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $95 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (16.6% below list).
• It's been on market 51 days — a 3% lower offer ($135k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (16.6% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($964 loan paydown + $3k appreciation (2.1% local appreciation)).
• Location reads 55/100 on livability (#440 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: employment D+, health & safety D, crime F.
• Geneva County (rural): math 22% / reading 51% proficiency, ranked #39 of 129 in AL (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Samson Elementary School (math 17% / reading 42%, grade F, #367 of 627 statewide, top 60%, 379 students, 80% FRL); Samson Middle School (math 12% / reading 52%, grade F, #110 of 257 statewide, top 44%, 169 students, 84% FRL); Samson High School (math 5% / reading 5%, grade F, #276 of 305 statewide, top 95%, 189 students, 77% FRL) — zoned schools average 80% FRL vs 59% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 22% at this address vs 36% district-wide (-14 pts) — the specific schools serving this property underperform the Geneva County average; the district grade overstates school quality for this exact location.
• Market conditions: 20 active listings in the ZIP; 39 units permitted in Geneva County in 2024 (0 in 5+ unit buildings).
• Geneva County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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.
• At projected returns (2.1% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 51 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.