1205 South

Greensboro, AL 36744

$137,000D-

2 bd · 1.0 ba · 1,044 sqft · Built 2005 · SingleFamily · Pending · 83 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $953/mo
• Mortgage (P&I): −$718
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$200
• Net cashflow: $-102/mo
• Annual: $-1,225/yr
• Cap rate: 5.40%
• Cash-on-cash: -3.19%
• DSCR: 0.86
• 1% rule: 0.70%
• Cash to close: $38,360

Investor read

• This is a 2-bed/1.0-bath single-family listed at $137k.
• At list price, monthly cash flow is $-102 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (13.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $95k (30.5% below list).
• It's been on market 83 days — a 6% lower offer ($129k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $95k (30.5% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($947 loan paydown + $10k appreciation (7.2% local appreciation)).
• Location reads 66/100 on livability (#106 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A-; Watch: amenities F, commute F, employment F.
• Hale County (rural): math 6% / reading 31% proficiency, ranked #109 of 129 in AL (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Greensboro Elementary School (math 4% / reading 31%, grade F, #484 of 627 statewide, top 77%, 554 students, 78% FRL); Greensboro Middle School (math 2% / reading 17%, grade F, #227 of 257 statewide, top 90%, 232 students, 88% FRL); Greensboro High School (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 294 students, 84% FRL) — zoned schools average 83% FRL vs 68% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 36 active listings in the ZIP; 11 units permitted in Hale County in 2024 (0 in 5+ unit buildings).
• Hale County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $102k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 4, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→19/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 83 days. Have you received any prior offers? Is the seller open to a 30% 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 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.
• 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.