113 Highland Cir

Talladega, AL 35160

$30,000B-

2 bd · 1.0 ba · 898 sqft · Built 1940 · SingleFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $715/mo
• Mortgage (P&I): −$157
• Tax + insurance: −$42
• HOA: −$0
• Vac / Maint / Mgmt: −$150
• Net cashflow: $365/mo
• Annual: $4,384/yr
• Cap rate: 20.91%
• Cash-on-cash: 52.19%
• DSCR: 3.32
• 1% rule: 2.38%
• Cash to close: $8,400

Investor read

• This is a 2-bed/1.0-bath single-family listed at $30k.
• At list price, monthly cash flow is $365 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($715 rent vs $30k).
• It's been on market 26 days — a 2% lower offer ($30k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $30k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $207 of loan paydown is wiped out by about $900 of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#327 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A, health & safety A-; Watch: crime F, amenities F, commute F.
• Talladega City (rural): math 7% / reading 25% proficiency, ranked #114 of 129 in AL (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 74% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Evelyn D Houston Elementary School (math 5% / reading 26%, grade F, #204 of 257 statewide, top 80%, 353 students, 92% FRL); Zora Ellis Junior High School (math 2% / reading 23%, grade F, #216 of 257 statewide, top 86%, 228 students, 91% FRL); Talladega High School (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 446 students, 84% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 171 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 189 units permitted in Talladega County in 2024 (6 in 5+ unit buildings).
• Talladega County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 20.9% vs local median 4.8% in Talladega — 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

• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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.
• 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.