2050 Highway 85

Daleville, AL 36322

$176,500D

3 bd · 2.0 ba · 1,440 sqft · Built 1984 · SingleFamily · Pending · 82 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,420/mo
• Mortgage (P&I): −$926
• Tax + insurance: −$294
• HOA: −$0
• Vac / Maint / Mgmt: −$298
• Net cashflow: $-98/mo
• Annual: $-1,172/yr
• Cap rate: 5.63%
• Cash-on-cash: -2.37%
• DSCR: 0.89
• 1% rule: 0.80%
• Cash to close: $49,420

Investor read

• This is a 3-bed/2.0-bath single-family listed at $176k. Condition is rated good.
• At list price, monthly cash flow is $-98 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (8.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (19.5% below list).
• It's been on market 82 days — a 6% lower offer ($166k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $142k (19.5% below list) — sets the bar for 1% rule.
• In year one you build about $19k of equity ($1k loan paydown + $18k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#278 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: health & safety D, amenities F, commute F.
• Daleville City (town): math 9% / reading 37% proficiency, ranked #97 of 129 in AL (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: A M Windham Elementary School (math 17% / reading 37%, grade F, #392 of 627 statewide, top 65%, 499 students, 70% FRL); Daleville Middle School (math 7% / reading 39%, grade F, #176 of 257 statewide, top 70%, 361 students, 72% FRL); Daleville High School (math 2% / reading 22%, grade F, #238 of 305 statewide, top 79%, 294 students, 60% FRL).
• Market conditions: 41 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 38 units permitted in Dale County in 2024 (0 in 5+ unit buildings).
• Dale County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 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.
• By year 2, paydown + projected appreciation supports a ~$30k 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→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 36% of the median local income ($47k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 82 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.