The Hayden Plan

Bessemer, AL 35111

$344,900F

5 bd · 3.0 ba · 2,511 sqft · Built — · SingleFamily · Active · 165 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,820/mo
• Mortgage (P&I): −$2,229
• Tax + insurance: −$709
• HOA: −$0
• Vac / Maint / Mgmt: −$592
• Net cashflow: $-710/mo
• Annual: $-8,523/yr
• Cap rate: 4.29%
• Cash-on-cash: -7.16%
• DSCR: 0.68
• 1% rule: 0.66%
• Cash to close: $119,029

Investor read

• This is a 5-bed/3.0-bath single-family listed at $345k.
• At list price, monthly cash flow is $-710 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $322k (6.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $282k (18.2% below list).
• It's been on market 165 days — a 12% lower offer ($304k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $282k (18.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k 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: 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: 353 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• Cap rate 4.3% vs local median 5.9% in Bessemer — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 39% of the median local income ($86k/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 165 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.