4400 Highway 431

Hollis Crossroads, AL 36264

$132,900C-

2 bd · 1.0 ba · 1,391 sqft · Built 1950 · SingleFamily · Active · 111 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,217/mo
• Mortgage (P&I): −$697
• Tax + insurance: −$222
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $43/mo
• Annual: $511/yr
• Cap rate: 6.68%
• Cash-on-cash: 1.37%
• DSCR: 1.06
• 1% rule: 0.92%
• Cash to close: $37,212

Investor read

• This is a 2-bed/1.0-bath single-family listed at $133k.
• At list price, monthly cash flow is $43 ($511/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 $122k (8.5% below list).
• It's been on market 111 days — a 9% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (9.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($919 loan paydown + $189 appreciation (0.1% local appreciation)).
• Location reads 56/100 on livability (#406 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: employment C-, schools F, crime D-.
• Cleburne County (rural): math 20% / reading 52% proficiency, ranked #42 of 129 in AL (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 67 active listings in the ZIP; 5 units permitted in Cleburne County in 2024 (0 in 5+ unit buildings).
• Cleburne County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; 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

• It's been on market 111 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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?
• Crime grade is D 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?
• 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.