The Greenbrier II Plan

Huntsville, AL 35749

$261,900F

3 bd · 2.5 ba · 2,237 sqft · Built — · SingleFamily · Active · 931 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,263/mo
• Mortgage (P&I): −$1,592
• Tax + insurance: −$506
• HOA: −$0
• Vac / Maint / Mgmt: −$475
• Net cashflow: $-309/mo
• Annual: $-3,712/yr
• Cap rate: 5.07%
• Cash-on-cash: -4.37%
• DSCR: 0.81
• 1% rule: 0.75%
• Cash to close: $84,976

Investor read

• This is a 3-bed/2.5-bath single-family listed at $262k. Condition is rated excellent.
• At list price, monthly cash flow is $-309 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $259k (1.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $226k (13.6% below list).
• It's been on market 931 days — a 12% lower offer ($230k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $226k (13.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k 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: Endeavor Elementary School (math 30% / reading 63%, grade D-, #159 of 627 statewide, top 26%, 628 students, 33% FRL); Monrovia Middle School (math 29% / reading 66%, grade C-, #32 of 257 statewide, top 12%, 1,003 students, 31% FRL); Sparkman High School (math 28% / reading 37%, grade F, #58 of 305 statewide, top 19%, 1,738 students, 37% FRL).
• Market conditions: Rents flat; 1001 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 61% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• Cap rate 5.1% 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.

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 931 days. Have you received any prior offers? Is the seller open to a 14% 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.
• 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.
• 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.