1120 7th Ave SE · Decatur, AL 35601

$125,000

3 bd · 1.0 ba · 1,066 sqft · SingleFamily public records · 11 Days on market

Built 1955 0.32 ac lot $117/sqft · 20% below area Est $152k · 18% under ↓ 4% since listing

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +20.1/30.0
• ARV discount +15.0/15.0
• DSCR +6.4/10.0
• 1% rule +4.6/10.0
• Rent growth +3.7/5.0
• Livability +3.6/5.0
• Schools +2.6/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Great Opportunity for Investors or First-Time Buyers! This 3-bedroom, 1-bath home in Decatur offers plenty of potential for both investors and first-time home buyers looking to make a home their own. Situated on a generous 0.32-acre lot, the property features an attached 2-car garage and a functional layout ready for your personal touches and cosmetic updates. Whether you’re looking for your next flip, rental investment, or an affordable home to customize over time, this property checks all the boxes. Conveniently located with plenty of outdoor space and room to add value, this is a great chance to create equity and make it your own. Sold as-is.

Key facts

• 0.32-acre lot
• Outdoor space
• 0.32 acre lot

Tags

• 0.32-ACRE LOT
• ATTACHED 2-CAR GARAGE
• OUTDOOR SPACE

Property features AI

Finance

• Other: Subdivision: Dli&F Co Add 3
• HOA & community: No homeowners association

Exterior

• Parking: Attached two-car garage; Garage faces front; Concrete driveway
• Utilities: Public sewer
• Home design: Single-family residence; One-story; Built in 1955; Residential property
• Construction: No fireplaces
• Exterior features: Covered patio; Public water

Interior

• Bathrooms: 1 full bathroom
• Heating & cooling: Central heating; Central cooling
• Interior features: Crawl space basement

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $125k.

Deal economics

• At list price, monthly cash flow is $155 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (4.3% below list).
• Recommended offer: $120k (4.3% below list) — sets the bar for 1% rule.
• Cap rate 7.8% vs local median 4.0% in Decatur — 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.

Location & tenants

• Location reads 72/100 on livability (#28 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D+, crime F, amenities F.
• Decatur City (urban): math 22% / reading 40% proficiency, ranked #66 of 129 in AL (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Decatur Middle School (math 17% / reading 36%, grade F, #150 of 257 statewide, top 60%, 815 students, 77% FRL); Decatur High School (math 27% / reading 27%, grade F, #90 of 305 statewide, top 35%, 1,040 students, 67% FRL) — zoned schools average 72% FRL vs 57% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.7%/yr); 223 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 83% of comp listings sitting > 30 days — soft ceiling on asking rent; 231 units permitted in Morgan County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Morgan County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $119,633 (4.3% below list)

Questions for the listing agent

1. Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.96% ✗
• Cap rate: 7.78%
• Cash-on-cash: 5.30%
• DSCR: 1.24
• GRM: 8.7

CMA / ARV

• ARV (median comp): $151,804
• List price: $125,000
• Delta: -17.66%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1120 7th Ave SE	0.00mi	3/1.0	1,040 (-2%)	0mo	$120,000	$115	96
1209 11th Ave SE	0.26mi	3/1.0	1,068 (+0%)	1mo	$118,500	$111	87
1024 9th Ave SE	0.17mi	2/1.0 (-1)	1,008 (-5%)	7mo	$164,000	$163	72
1014 7th Ave SE	0.15mi	3/1.0	972 (-9%)	11mo	$139,000	$143	70
1002 7th Ave SE	0.21mi	3/2.0	1,172 (+10%)	2mo	$153,000	$131	68
112 SW Hillside Rd SW	0.63mi	3/1.5	1,100 (+3%)	1mo	$125,000	$114	62
911 9th Ave SE	0.30mi	2/1.0 (-1)	964 (-10%)	7mo	$115,000	$119	59
1607 10th Avenue Ct SE	0.61mi	3/1.5	1,095 (+3%)	10mo	$175,000	$160	56
1605 SE 7th St	0.68mi	2/1.0 (-1)	1,113 (+4%)	5mo	$130,000	$117	52
120 Beard St SW	0.65mi	3/1.0	958 (-10%)	7mo	$143,900	$150	48
1628 8th St SE	0.75mi	2/1.0 (-1)	1,012 (-5%)	8mo	$155,000	$153	45
1207 North St SE	0.74mi	2/2.0 (-1)	1,172 (+10%)	6mo	$136,000	$116	35

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 4.67% rent growth · sell at horizon

5-year hold

• IRR: -6.4%
• Equity multiple: 0.76×
• Total profit: $-8,387
• Equity at exit: $18,638

10-year hold

• IRR: 5.1%
• Equity multiple: 1.40×
• Total profit: $13,950
• Equity at exit: $10,808

Cash invested: $35,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Alabama: 90 Strongly Landlord-Friendly · R+15
• County: — inherits STATE
• City: — inherits STATE

Right-to-evict in 7 days for non-payment; no rent control; preempted statewide; courts move quickly.

Methodology + full state rankings →

ZIP-level market 35601

• Home prices YoY: -26.5%
• Rents YoY: 4.7%
• Active inventory: 223
• Price-to-rent: 8.7×

Monthly cashflow live

• Estimated rent: $1,196 high
• Mortgage (P&I): −$656
• Tax from tax record: −$83 /mo · $994/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$251
• Net cashflow: $155

Break-even live

Break-even rent $1,001

Max offer price $125,000

Occupancy floor 82%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Rent comps 23 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
603 Prospect Dr SE Decatur, AL	3.0	1.0	1362	$1,795	$1.32	43d	1	0.53mi
227 8th St SW Unit 19 Decatur, AL	2.0	1.0	850	$825	$0.97	43d	1	0.64mi
1208 2nd Ave SW Unit 1208 28 Decatur, AL	2.0	1.0	850	$825	$0.97	43d	1	0.64mi
1220 2nd Ave SW Unit 2nd 7 Decatur, AL	2.0	1.0	850	$825	$0.97	43d	1	0.64mi
1628 8th St SE Decatur, AL	2.0	1.0	1012	$1,200	$1.19	43d	1	0.77mi
315 Hillside Rd SW Decatur, AL	3.0	1.5	1344	$1,400	$1.04	43d	1	0.79mi
1221 North St SE Decatur, AL	2.0	1.0	937	$775	$0.83	43d	2	0.79mi
1801 7th St SE Decatur, AL	4.0	2.0	1475	$1,550	$1.05	43d	1	0.82mi
818 Grant St SE Decatur, AL	2.0	1.0	910	$1,300	$1.43	43d	1	0.83mi
1018 Grant St SE Unit 1026-4 Decatur, AL	2.0	1.0	890	$800	$0.90	43d	1	0.85mi
1018 Grant St SE Unit 1018-4 Decatur, AL	2.0	1.0	890	$775	$0.87	43d	1	0.87mi
1821 7th St SE Decatur, AL	3.0	1.0	908	$1,100	$1.21	23d	1	0.88mi
1602 Brookridge Dr SW Decatur, AL	1.0–2.0	1.0–2.0	797	$1,174	$1.47	43d	13	0.95mi
1205 Broadus Ave SE Decatur, AL	3.0	2.0	1306	$1,195	$0.92	43d	1	0.97mi
102 Elm Ct NE Decatur, AL	3.0	1.0	1216	$1,450	$1.19	23d	1	1.08mi
1314 Pennylane SE Decatur, AL	3.0	1.5	1100	$1,198	$1.09	23d	1	1.22mi
609 7th Ave SW Decatur, AL	4.0	2.0	1380	$1,425	$1.03	43d	1	1.22mi
324 Cardinal Dr SW Decatur, AL	2.0	1.0	681	$952	$1.40	43d	14	1.23mi
2115 Central Pkwy SW Decatur, AL	1.0–3.0	1.0	821	$950	$1.16	43d	1	1.26mi
2136 Eastbrook SE Decatur, AL	2.0	2.0	1400	$1,495	$1.07	43d	1	1.27mi
516 Ferry St NE Decatur, AL	2.0	1.0	900	$1,150	$1.28	23d	1	1.28mi
201 Bluebird Ln SW Decatur, AL	2.0	1.0	950	$898	$0.94	43d	11	1.33mi
225 5th Ave NW Decatur, AL	3.0	2.0	1496	$1,300	$0.87	43d	1	1.47mi

Listing history 2 events

1. 2026-05-18
   status Pending 660-char remark
2. 2026-05-07
   listed $125,000 Active 660-char remark

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast AL · Resets to sale price

• Current annual tax: $994 · $83/mo
• Projected year-2 tax: $994 · $83/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 72% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 21% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,356
• − Mortgage interest: −$7,002
• − Property taxes: −$994
• − Insurance: −$625
• − Repairs & maintenance: −$1,148
• − Management: −$1,148
• − Depreciation: −$3,636
• Taxable loss: −$198
• Est. tax savings @ 24.0%: +$48
• After-tax cash flow: $1,904/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Decatur City
• NCES district ID: 0101170
• Math proficiency: 22% ▼ -27.00%
• Reading proficiency: 40% ▼ -1.00%
• Median HH income: $42,170
• Composite: 26.21/100
• National rank: #7261
• State rank: #66 of 129 in AL

Livability — Decatur

• Score: 72/100
• State rank: #28
• US rank: #5989

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment D+ Housing A+ Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Decatur, AL
• County: Morgan County · 67,628 people
• City population: 67,628
• Metro: Decatur, AL
• Population (ZIP): 35,449
• Household income: $51,429
• Rent vs Own: 42.2% rent · 57.8% own
• Severe rent burden: 1386.0

Population outlook (Morgan County) Hauer SSP2

• Today (2025): 118,775 people
• By 2030: 116,979 · -1.5%
• By 2040: 111,800 · -5.9%
• By 2050: 105,181 · -11.4%
• By 2075: 87,736 · -26.1%
• By 2100: 67,624 · -43.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.66)
• Race & ethnicity: White 47% Hispanic / Latino 24% Black 24% Two or more races 10% Native American 2%
• Hispanic origin (detail): Mexican 15% Puerto Rican 2%
• Common ancestry: Slovak 1% Italian 1% Lithuanian 1%
• Foreign-born: 10% · Canada
• Languages at home: 81% English-only · Spanish 18%

Political lean MEDSL · Morgan

• 2024 margin: Solid R (+52.6) · D 23.2% · R 75.8%
• 2008→2024 swing: -8.8pp toward R · 2008: -43.8pp · 2024: -52.6pp
• All cycles: 2024: R+52.6 2020: R+49.2 2016: R+52.4 2012: R+44.5 2008: R+43.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -89.26%
• Current HPI: 247.8437
• Rent YoY: ▲ 4.67%
• Metro: Decatur, AL
• State GDP YoY: ▲ 2.94%
• F500 in state: 4

Industry mix (Fortune 500 HQ in AL)

Industry	F500 HQs	Revenue
▸Financial Services	1	$8B
▸Healthcare	1	$5B

Price history

-4.0% since first listed

3 events — show timeline

• 2026-06-11 Sold (MLS) $120,000 VMLS
• 2026-05-18 Pending — VMLS
• 2026-05-07 Listed $125,000 VMLS

Property tax history

+15.7%/yr

Latest (2025): $994 · +256.9% YoY. Source: county tax records.