596 County Road 61

Haleburg, AL 36319

$242,000F

4 bd · 1.5 ba · 2,615 sqft · Built 1973 · SingleFamily · Active · 155 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,272/mo
• Mortgage (P&I): −$1,269
• Tax + insurance: −$163
• HOA: −$0
• Vac / Maint / Mgmt: −$267
• Net cashflow: $-427/mo
• Annual: $-5,129/yr
• Cap rate: 4.17%
• Cash-on-cash: -7.57%
• DSCR: 0.66
• 1% rule: 0.53%
• Cash to close: $67,760

Investor read

• This is a 4-bed/1.5-bath single-family listed at $242k.
• At list price, monthly cash flow is $-427 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $166k (31.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $127k (47.4% below list).
• It's been on market 155 days — a 12% lower offer ($213k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $127k (47.4% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($2k loan paydown + $15k appreciation (6.1% local appreciation)).
• Location reads 64/100 on livability (#159 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: health & safety D, schools F, amenities F.
• Henry County (rural): math 21% / reading 45% proficiency, ranked #55 of 129 in AL (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 25 active listings in the ZIP; 71 units permitted in Henry County in 2024 (0 in 5+ unit buildings).
• Henry County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 7 sale attempts since 9y ago 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.
• Current owner paid $210k; 15% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$41k 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.

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 155 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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.
• 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.