180 Bennett St

Heflin, AL 36264

$152,000C-

3 bd · 1.0 ba · 1,816 sqft · Built 1955 · SingleFamily · Under Contract · 108 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,245/mo
• Mortgage (P&I): −$797
• Tax + insurance: −$195
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $-9/mo
• Annual: $-103/yr
• Cap rate: 6.23%
• Cash-on-cash: -0.24%
• DSCR: 0.99
• 1% rule: 0.82%
• Cash to close: $42,560

Investor read

• This is a 3-bed/1.0-bath single-family listed at $152k.
• At list price, monthly cash flow is $-9 ($-103/yr) — negative.
• To cash-flow at today's rent, offer at most $150k (1.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (18.1% below list).
• It's been on market 108 days — a 9% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (18.1% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($1k loan paydown + $216 appreciation (0.1% local appreciation)).
• Location reads 64/100 on livability (#151 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D+, amenities F, commute F.
• 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 1955 — 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.
• 8 sale attempts since 4y ago; this cycle's ask has dropped $38k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 2.8% in Heflin — 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 108 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1955 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.