The Braselton II Plan

Bessemer, AL 35022

$271,900F

3 bd · 2.5 ba · 1,933 sqft · Built — · SingleFamily · Active · 279 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,237/mo
• Mortgage (P&I): −$1,549
• Tax + insurance: −$492
• HOA: −$0
• Vac / Maint / Mgmt: −$470
• Net cashflow: $-274/mo
• Annual: $-3,286/yr
• Cap rate: 5.18%
• Cash-on-cash: -3.97%
• DSCR: 0.82
• 1% rule: 0.76%
• Cash to close: $82,684

Investor read

• This is a 3-bed/2.5-bath single-family listed at $272k.
• At list price, monthly cash flow is $-274 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $256k (6.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $224k (17.7% below list).
• It's been on market 279 days — a 12% lower offer ($239k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $224k (17.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#331 in AL) — a working-class tenant base; expect higher turnover. Strengths: commute A+, cost of living A+, housing A; Watch: crime F, amenities F, employment F.
• Bessemer City (suburban): math 3% / reading 19% proficiency, ranked #120 of 129 in AL (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 87% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Westhills Elementary School (math 8% / reading 27%, grade F, #486 of 627 statewide, top 79%, 315 students, 75% FRL); Bessemer City Middle School (math 3% / reading 23%, grade F, #215 of 257 statewide, top 84%, 674 students, 88% FRL); Bessemer City High School (math 2% / reading 8%, grade F, #276 of 305 statewide, top 95%, 850 students, 61% FRL).
• Market conditions: Rents rising fast (+14.8%/yr); 311 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).
• Jefferson County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• This rent runs 33% of the median local income ($82k/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 279 days. Have you received any prior offers? Is the seller open to a 18% 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 D-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?
• 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.