4011 Eunice St

Huntsville, AL 35805

$1,600,000B-

140 bd · 140.0 ba · 6,000 sqft · Built 1978 · MultiFamily · Pending · 319 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $51,926/mo
• Mortgage (P&I): −$8,391
• Tax + insurance: −$1,228
• HOA: −$0
• Vac / Maint / Mgmt: −$10,904
• Net cashflow: $31,403/mo
• Annual: $376,840/yr
• Cap rate: 29.85%
• Cash-on-cash: 84.12%
• DSCR: 4.74
• 1% rule: 3.25%
• Cash to close: $448,000

Investor read

• This is a 35 × 4-bed/?-bath units multifamily listed at $1.60M.
• At list price, monthly cash flow is $31k ($377k/yr) — positive. Per door: $897/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($52k rent vs $1.60M).
• It's been on market 319 days — a 12% lower offer ($1.41M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.41M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $48k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#3 in AL, #1,082 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F.
• Huntsville City (urban): math 21% / reading 46% proficiency, ranked #48 of 129 in AL (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ridgecrest Elementary School (math 8% / reading 35%, grade F, #450 of 627 statewide, top 72%, 511 students, 85% FRL); Morris Middle School (math 3% / reading 25%, grade F, #209 of 257 statewide, top 82%, 453 students, 58% FRL); Columbia High School (math 12% / reading 17%, grade F, #220 of 305 statewide, top 77%, 954 students, 50% FRL) — zoned schools average 64% FRL vs 46% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 17% at this address vs 34% district-wide (-17 pts) — the specific schools serving this property underperform the Huntsville City average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+1.8%/yr); 133 active listings in the ZIP; lower-income renter base — watch delinquency; 4,709 units permitted in Madison County in 2024 (1,186 in 5+ unit buildings).
• Madison County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 2y ago; this cycle's ask is 3% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-3.0% appreciation + 1.8% rent growth), your $448k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 29.8% vs local median 3.8% in Huntsville — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $51,926/mo this rent would consume 1761% of the median local household income ($35k/yr) (locally 1750% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 319 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.