968 Karen Rd · Montgomery, AL 36109

$133,000

3 bd · 1.0 ba · 1,221 sqft · SingleFamily public records · 2 Days on market

Built 1940 Est $125k · 7% over

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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 +23.0/30.0
• DSCR +7.4/10.0
• 1% rule +5.0/10.0
• ARV discount +4.4/15.0
• Rent growth +3.2/5.0
• Livability +3.2/5.0
• Condition / age +2.5/5.0
• Schools +1.7/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to the Beautiful 3 bed 2 bath located in Forest Hills, Montgomery, AL. This stunning home boasts a fresh coat of paint and new fixtures, giving it a modern and updated feel. The kitchen is fully equipped with essential appliances including a dishwasher, oven, stove, microwave, and fridge. The home also features new flooring and original hardwood, adding a touch of elegance and warmth. With off-street parking and central A/C, convenience and comfort are at your fingertips. To experience this gem for yourself, call our self-showing number at 334-366-9198 to schedule a tour. Don't miss out on this opportunity to make this beautiful house your new home. https://portfolio. zinspector.com/tour/qlKB61x5nbQ4R7Nq8BMJO0oAP2emp9ak?footer=false & header=false

Key facts

• Central heat
• Tiled showers
• New cabinets

Tags

• STAINLESS STEEL APPLIANCES
• TILED SHOWERS
• NEW COUNTERTOPS
• NEW CABINETS
• NEW BACKSPLASH
• CENTRAL HEAT

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $133k.

Deal economics

• At list price, monthly cash flow is $235 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $133k).
• Cap rate 8.4% vs local median 6.0% in Montgomery — 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 65/100 on livability (#138 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools C-, employment D, crime F.
• Montgomery County (urban): math 9% / reading 31% proficiency, ranked #106 of 129 in AL (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+2.6%/yr); 207 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 55% of comp listings sitting > 30 days — soft ceiling on asking rent; 460 units permitted in Montgomery County in 2024 (37 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $920 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Montgomery County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• 6 sale attempts since 17y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $92k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $133,000

Questions for the listing agent

1. Built in 1940 — 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: 1.00% ✓
• Cap rate: 8.42%
• Cash-on-cash: 7.58%
• DSCR: 1.34
• GRM: 8.3

CMA / ARV

• ARV (on-the-fly): $124,542
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3318 Bedford Ln	0.29mi	3/2.0	1,134 (-7%)	2mo	$72,999	$64	69
3700 Ramos Ct	0.57mi	3/2.0	1,232 (+1%)	3mo	$134,400	$109	66
3316 Loch Haven Rd	0.33mi	3/1.0	1,080 (-12%)	1mo	$110,000	$102	65
815 Perry Hill Rd	0.64mi	3/1.0	1,303 (+7%)	0mo	$100,000	$77	58
3602 Little John Dr	0.64mi	3/1.0	1,286 (+5%)	4mo	$65,000	$51	58
735 Duval Dr	0.71mi	3/2.0	1,174 (-4%)	2mo	$147,000	$125	55
3831 Avondale Ct	0.61mi	3/2.0	1,144 (-6%)	4mo	$151,000	$132	54
1229 Karen Rd	0.44mi	4/2.0 (+1)	1,344 (+10%)	3mo	$92,000	$68	51
3927 Bienville Rd	0.71mi	3/1.0	1,105 (-10%)	0mo	$115,000	$104	51
664 Joryne Dr	0.53mi	3/2.0	1,363 (+12%)	1mo	$129,000	$95	51
3506 Farwood Dr	0.52mi	3/1.0	1,053 (-14%)	3mo	$81,000	$77	50
3243 Durham Dr	0.45mi	4/2.0 (+1)	1,363 (+12%)	1mo	$150,000	$110	50

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 · 2.65% rent growth · sell at horizon

5-year hold

• IRR: -5.1%
• Equity multiple: 0.81×
• Total profit: $-7,070
• Equity at exit: $19,831

10-year hold

• IRR: 4.1%
• Equity multiple: 1.30×
• Total profit: $11,069
• Equity at exit: $11,499

Cash invested: $37,240 (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 36109

• Home prices YoY: -20.1%
• Rents YoY: 2.6%
• Active inventory: 207
• Price-to-rent: 8.3×

Monthly cashflow live

• Estimated rent: $1,332 high
• Mortgage (P&I): −$697
• Tax from tax record: −$64 /mo · $771/yr
• Insurance: −$55
• HOA: −$0
• Vacancy / Maint / Mgmt: −$280
• Net cashflow: $235

Break-even live

Break-even rent $1,034

Max offer price $133,000

Occupancy floor 77%

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: $33,250
• Closing costs: $3,990
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3456 Harrison Rd Montgomery, AL	3.0	1.0	1008	$1,300	$1.29	43d	1	0.07mi
1117 Karen Rd Montgomery, AL	3.0	1.0	1308	$1,195	$0.91	43d	1	0.14mi
3346 Bedford Ln Montgomery, AL	3.0	1.0	1134	$1,295	$1.14	13d	1	0.20mi
1154 Lakewood Dr Montgomery, AL	3.0	2.0	1066	$1,350	$1.27	43d	1	0.23mi
3323 Bedford Ln Montgomery, AL	3.0	2.0	1134	$1,200	$1.06	20d	1	0.24mi
3318 Habersham Rd Montgomery, AL	3.0	2.0	1134	$1,250	$1.10	13d	1	0.37mi
1229 Karen Rd Montgomery, AL	4.0	2.0	1344	$1,590	$1.18	43d	1	0.41mi
895 Greg Dr Montgomery, AL	3.0	2.0	1489	$1,600	$1.07	13d	1	0.43mi
860 Greg Dr Montgomery, AL	3.0	2.0	1400	$1,295	$0.93	13d	1	0.45mi
688 Joryne Dr Montgomery, AL	3.0	2.0	1500	$1,200	$0.80	43d	1	0.51mi
1216 Beechdale Rd Montgomery, AL	4.0	2.0	1495	$1,325	$0.89	43d	1	0.53mi
3136 Harrison Rd Montgomery, AL	3.0	1.5	1355	$1,025	$0.76	43d	1	0.58mi
2845 Zelda Rd Montgomery, AL	2.0	2.0	1013	$1,042	$1.03	13d	3	0.68mi
3602 Little John Dr Montgomery, AL	4.0	1.0	1286	$1,400	$1.09	20d	1	0.68mi
3233 Hillcrest Ln Montgomery, AL	3.0	2.0	1278	$1,395	$1.09	20d	1	0.75mi
4041A Beth Manor Dr Montgomery, AL	1.0–3.0	1.0–2.0	925	$1,000	$1.08	20d	20	0.78mi
750 S Marquette Dr Montgomery, AL	3.0	1.0	1325	$1,195	$0.90	43d	1	0.84mi
311 Bradley Dr Montgomery, AL	3.0	1.0	1104	$825	$0.75	43d	1	0.92mi
118 Nottingham Ct Montgomery, AL	3.0	2.0	1344	$1,275	$0.95	43d	1	0.92mi
2736 Chevy Chase Dr Montgomery, AL	3.0	1.0	1100	$1,300	$1.18	43d	1	0.93mi
301 Bradley Dr Montgomery, AL	2.0	1.0	841	$935	$1.11	13d	1	0.95mi
3329 Vermont Dr Montgomery, AL	3.0	1.5	1465	$1,395	$0.95	13d	1	0.95mi
3334 Cottonwood Dr Montgomery, AL	3.0	2.0	1025	$1,295	$1.26	13d	1	0.96mi
3515 Cottonwood Dr Montgomery, AL	3.0	1.5	1246	$1,350	$1.08	43d	1	0.96mi
239 Forest Hills Dr Montgomery, AL	4.0	1.5	1500	$1,450	$0.97	20d	1	0.99mi
1814 Pinecrest Dr Montgomery, AL	3.0	1.0	1053	$990	$0.94	43d	1	1.03mi
3319 Willow Lane Dr Montgomery, AL	3.0	2.0	1032	$1,200	$1.16	43d	1	1.04mi
122 Oak Forest Dr Montgomery, AL	3.0	1.0	1092	$975	$0.89	20d	1	1.04mi
319 Olivia Ct Montgomery, AL	2.0	1.0	850	$700	$0.82	20d	1	1.06mi
1839 Robison Hill Rd Montgomery, AL	4.0	2.0	1370	$1,550	$1.13	20d	1	1.14mi
2454 Spruce Curv Montgomery, AL	3.0	1.0	988	$1,100	$1.11	43d	1	1.20mi
15 Bradley Dr Montgomery, AL	3.0	2.0	1365	$1,500	$1.10	20d	1	1.24mi
4132 Carmichael Rd Montgomery, AL	1.0–3.0	1.0–2.0	900	$1,156	$1.28	13d	10	1.27mi
103 Dalraida Rd Unit D Montgomery, AL	2.0	2.0	838	$875	$1.04	43d	1	1.30mi
107 Dalraida Rd Unit A Montgomery, AL	3.0	2.0	1237	$1,200	$0.97	43d	1	1.33mi
7 Calhoun Rd Unit B Montgomery, AL	2.0	1.0	961	$850	$0.88	43d	1	1.36mi
67 Holliday Dr Montgomery, AL	3.0	1.0	1156	$1,200	$1.04	43d	1	1.41mi
4046 Camellia Dr Unit 1 Montgomery, AL	3.0	2.0	1500	$1,200	$0.80	43d	1	1.42mi
2205 E 5th St Montgomery, AL	3.0	1.0	1020	$800	$0.78	43d	1	1.48mi
2113 Brewton St Montgomery, AL	3.0	1.0	1363	$1,150	$0.84	43d	1	1.49mi

Listing history 3 events

1. 2026-06-18
   days on market $133,000 Active 2 DOM
2. 2026-06-17
   remarks 671-char remark
3. 2026-06-17
   listed $133,000 Active 1 DOM

ⓘ 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: $771 · $64/mo
• Projected year-2 tax: $771 · $64/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 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 20 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,988
• − Mortgage interest: −$7,450
• − Property taxes: −$771
• − Insurance: −$665
• − Repairs & maintenance: −$1,279
• − Management: −$1,279
• − Depreciation: −$3,869
• Taxable income: $674
• Est. tax owed @ 24.0%: −$162
• After-tax cash flow: $2,663/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: Montgomery County
• NCES district ID: 0102430
• Math proficiency: 9% ▼ -21.00%
• Reading proficiency: 31% ▼ -1.00%
• Median HH income: $43,902
• Composite: 17.24/100
• National rank: #9093
• State rank: #106 of 129 in AL

Livability — Montgomery

• Score: 65/100
• State rank: #138
• US rank: #13416

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, AL
• County: Montgomery County · 190,016 people
• City population: 175,913
• Metro: Montgomery, AL
• Population (ZIP): 23,581
• Household income: $59,193
• Rent vs Own: 35.1% rent · 64.9% own
• Severe rent burden: 1039.0

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 224,008 people
• By 2030: 221,460 · -1.1%
• By 2040: 214,179 · -4.4%
• By 2050: 204,912 · -8.5%
• By 2075: 177,821 · -20.6%
• By 2100: 145,134 · -35.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.60)
• Race & ethnicity: White 49% Black 39% Hispanic / Latino 8% Two or more races 4%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Slovak 2% Lithuanian 1% Serbian 1%
• Foreign-born: 4% · Canada, South Korea
• Languages at home: 94% English-only · Spanish 5%

Political lean MEDSL · Montgomery

• 2024 margin: Solid D (+30.7) · D 64.8% · R 34.1% · Other 1.1%
• 2008→2024 swing: +11.5pp toward D · 2008: 19.2pp · 2024: 30.7pp
• All cycles: 2024: D+30.7 2020: D+31.5 2016: D+26.2 2012: D+24.3 2008: D+19.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -37.64%
• Current HPI: 149.3867
• Rent YoY: ▲ 2.65%
• Metro: Montgomery, 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

+121.7% since first listed

20 events — show timeline

• 2026-06-17 Listed $133,000 FSBO.com
• 2026-02-12 Delisted — MAAR
• 2026-02-12 Sold (Public Records) $92,000 Public Records
• 2026-02-12 Sold (MLS) $92,000 MAAR
• 2026-02-06 Rental Removed $950 APPFOLIO
• 2026-02-03 Contingent — MAAR
• 2026-01-21 Price Changed $105,000 MAAR
• 2026-01-15 Price Changed $950 APPFOLIO
• 2025-12-05 Price Changed $995 APPFOLIO
• 2025-11-26 Price Changed $110,000 MAAR
• 2025-10-07 Listed $115,000 MAAR
• 2025-09-05 Listed for Rent $1,050 APPFOLIO
• 2024-11-29 Rental Removed $950 APPFOLIO
• 2024-11-22 Listed for Rent $950 APPFOLIO
• 2021-06-25 Sold (Public Records) $86,500 Public Records
• 2021-06-25 Sold (MLS) $86,500 MAAR
• 2021-04-30 Listed $87,500 MAAR
• 2020-09-08 Sold (Public Records) $65,000 Public Records
• 2010-04-15 Sold (Public Records) $107,866 Public Records
• 2009-05-18 Listed $60,000 MAAR

Property tax history

+4.4%/yr

Latest (2025): $771 · +2.3% YoY. Source: county tax records.