517 Howard St · Talladega, AL 35160

$40,000

3 bd · 2.0 ba · 880 sqft · SingleFamily public records · 159 Days on market

Built 1940 6,098 sqft lot $45/sqft · 10% below area Est $45k · 10% under ↓ 33% since listing

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Why this score? — see what drove the B 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 +30.0/30.0
• ARV discount +12.2/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.3/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

3 br 2 bath small cottage Is fixer upper

Key facts

• 6,098 sq ft lot
• Built 1940
• Listed 158 days

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $654 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.
• Cap rate 25.9% 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.

Location & tenants

• 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: schools F, crime F, amenities 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.
• Market conditions: 170 active listings in the ZIP; 189 units permitted in Talladega County in 2024 (6 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $277 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• 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 $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 159 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask has dropped $20k (33%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $35,200 (12.0% below list)

Questions for the listing agent

1. It's been on market 159 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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: 2.82% ✓
• Cap rate: 25.90%
• Cash-on-cash: 70.03%
• DSCR: 4.12
• GRM: 3.0

CMA / ARV

• ARV (median comp): $44,681
• List price: $40,000
• Delta: -10.48%
• Verdict: UNDERPRICED
• Comps: 9 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 69.6%
• Equity multiple: 4.14×
• Total profit: $35,143
• Equity at exit: $5,964

10-year hold

• IRR: 73.6%
• Equity multiple: 8.52×
• Total profit: $84,181
• Equity at exit: $3,458

Cash invested: $11,200 (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 35160

• Home prices YoY: -26.9%
• Active inventory: 170
• Price-to-rent: 3.0×

Monthly cashflow live

• Estimated rent: $1,128 medium
• Mortgage (P&I): −$210
• Tax from tax record: −$11 /mo · $134/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$237
• Net cashflow: $654

Break-even live

Break-even rent $301

Max offer price $40,000

Occupancy floor 37%

Sensitivity live

Price	-10% $676	-5% $665	+0% $654	+5% $642	+10% $631
Rent	-10% $565	-5% $609	+0% $654	+5% $698	+10% $743
Rate	-1.0pp $674	-0.5pp $664	base $654	+0.5pp $643	+1.0pp $633

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Listing history 5 events

1. 2026-05-13
   status Active 42-char remark

   Show marketing remark (42 chars)

   3 br 2 bath small cottage Is fixer upper

2. 2026-05-09
   historical Contingent 42-char remark

   Show marketing remark (42 chars)

   3 br 2 bath small cottage Is fixer upper

3. 2026-04-29
   price $40,000 42-char remark

   Show marketing remark (42 chars)

   3 br 2 bath small cottage Is fixer upper

4. 2026-01-09
   price $47,500 42-char remark

   Show marketing remark (42 chars)

   3 br 2 bath small cottage Is fixer upper

5. 2025-12-19
   listed $59,900 Active 42-char remark

   Show marketing remark (42 chars)

   3 br 2 bath small cottage Is fixer upper

ⓘ 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: $134 · $11/mo
• Projected year-2 tax: $164 · $14/mo
• Expected delta: +$30/yr (+$3/mo · 22.4%)

ⓘ 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 5/10 Major
• 🌡 Heat 6/10 Major 7 d/yr ≥108°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,538
• − Mortgage interest: −$2,241
• − Property taxes: −$134
• − Insurance: −$200
• − Repairs & maintenance: −$1,083
• − Management: −$1,083
• − Depreciation: −$1,164
• Taxable income: $7,634
• Est. tax owed @ 24.0%: −$1,832
• After-tax cash flow: $6,012/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: Talladega City
• NCES district ID: 0103150
• Math proficiency: 7% ▼ -19.00%
• Reading proficiency: 25% ▼ -4.00%
• Median HH income: $30,107
• Composite: 12.63/100
• National rank: #9610
• State rank: #114 of 129 in AL

Livability — Talladega

• Score: 59/100
• State rank: #327
• US rank: #19965

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Talladega, AL
• Population (ZIP): 26,177

Population outlook (Talladega County) Hauer SSP2

• Today (2025): 78,905 people
• By 2030: 77,160 · -2.2%
• By 2040: 72,937 · -7.6%
• By 2050: 68,279 · -13.5%
• By 2075: 57,884 · -26.6%
• By 2100: 47,220 · -40.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.57)
• Race & ethnicity: White 49% Black 43% Two or more races 4% Hispanic / Latino 3%
• Common ancestry: Slovak 2% Italian 1% Iranian 1%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 3%

Political lean MEDSL · Talladega

• 2024 margin: Solid R (+33.8) · D 32.9% · R 66.6%
• 2008→2024 swing: -15.3pp toward R · 2008: -18.5pp · 2024: -33.8pp
• All cycles: 2024: R+33.8 2020: R+25.5 2016: R+25.6 2012: R+16.0 2008: R+18.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -70.24%
• Current HPI: 190.5904
• Rent YoY: —
• Metro: —
• 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

-33.2% since first listed

5 events — show timeline

• 2026-05-13 Relisted — Greater Alabama MLS
• 2026-05-09 Contingent — Greater Alabama MLS
• 2026-04-29 Price Changed $40,000 Greater Alabama MLS
• 2026-01-09 Price Changed $47,500 Greater Alabama MLS
• 2025-12-19 Listed $59,900 Greater Alabama MLS

Property tax history

+3.7%/yr

Latest (2025): $134 · +0.0% YoY. Source: county tax records.