20881 Highway 55 · Sterrett, AL 35147

$140,000

3 bd · 2.0 ba · 2,300 sqft · Other · 103 Days on market

Built 1994 Fair condition 2.69 ac lot

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Appreciation +5.3/10.0
• Schools +3.9/10.0
• Livability +2.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0

Listing remarks MLS

Great investment property. Doublewide 3 bedrooms, 2 bath, approximately 2300 sq. ft. full front porch, SOLD AS IS. .. needs updating. Large living room and separate family/den with wood burning fireplace. 3 additional outside buildings. .. this will not last.

Key facts

• Outside buildings
• Full front porch
• 2.69 acre lot

Tags

• FULL FRONT PORCH
• WOOD BURNING FIREPLACE
• OUTSIDE BUILDINGS

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath other listed at $140k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $888 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Recommended offer: $127k (9.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 53/100 on livability (#475 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime A; Watch: schools F, amenities F, commute F.
• Shelby County (suburban): math 30% / reading 58% proficiency, ranked #16 of 129 in AL (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 95 active listings in the ZIP; 987 units permitted in Shelby County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $2k of equity ($968 loan paydown + $975 appreciation (0.7% local appreciation)).
• Shelby County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (0.7% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 103 days — a 9% lower offer ($127k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major 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 $127,400 (9.0% below list)

Questions for the listing agent

1. It's been on market 103 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
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. 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.
7. 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.
8. 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: 1.55% ✓
• Cap rate: 13.90%
• Cash-on-cash: 27.18%
• DSCR: 2.21
• GRM: 5.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

0.7% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 28.8%
• Equity multiple: 2.46×
• Total profit: $57,047
• Equity at exit: $45,595

10-year hold

• IRR: 31.7%
• Equity multiple: 4.73×
• Total profit: $146,052
• Equity at exit: $58,926

Cash invested: $39,200 (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 35147

• Home prices YoY: 0.3%
• Active inventory: 95
• Price-to-rent: 5.4×

Monthly cashflow live

• Estimated rent: $2,171 medium
• Mortgage (P&I): −$734
• Tax from tax record: −$35 /mo · $416/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$456
• Net cashflow: $888

Break-even live

Break-even rent $1,047

Max offer price $140,000

Occupancy floor 54%

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: $35,000
• Closing costs: $4,200
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-18
   days on market $140,000 Active 103 DOM
2. 2026-06-17
   days on market $140,000 Active 102 DOM
3. 2026-06-16
   days on market $140,000 Active 101 DOM
4. 2026-06-15
   days on market $140,000 Active 100 DOM
5. 2026-06-13
   days on market $140,000 Active 98 DOM
6. 2026-06-13
   days on market $140,000 Active 97 DOM
7. 2026-06-10
   days on market $140,000 Active 95 DOM
8. 2026-06-09
   days on market $140,000 Active 94 DOM
9. 2026-06-08
   days on market $140,000 Active 93 DOM
10. 2026-06-07
    days on market $140,000 Active 92 DOM
11. 2026-06-05
    days on market $140,000 Active 89 DOM
12. 2026-06-03
    days on market $140,000 Active 88 DOM
13. 2026-06-02
    days on market $140,000 Active 87 DOM
14. 2026-06-01
    days on market $140,000 Active 86 DOM
15. 2026-05-31
    days on market $140,000 Active 85 DOM
16. 2026-03-04
    listed $140,000 Active 259-char remark

    Show marketing remark (259 chars)

    Great investment property. Doublewide 3 bedrooms, 2 bath, approximately 2300 sq. ft. full front porch, SOLD AS IS. .. needs updating. Large living room and separate family/den with wood burning fireplace. 3 additional outside buildings. .. this will not last.

ⓘ 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: $416 · $35/mo
• Projected year-2 tax: $574 · $48/mo
• Expected delta: +$158/yr (+$13/mo · 37.9%)

ⓘ 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 6/10 Major
• 🌡 Heat 6/10 Major 7 d/yr ≥107°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $26,052
• − Mortgage interest: −$7,842
• − Property taxes: −$416
• − Insurance: −$700
• − Repairs & maintenance: −$2,084
• − Management: −$2,084
• − Depreciation: −$4,073
• Taxable income: $8,852
• Est. tax owed @ 24.0%: −$2,125
• After-tax cash flow: $8,530/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.

Condition & rehab AI · 3 photos

Fair 45/100 Moderate rehab

This property requires moderate renovations, including landscaping, porch flooring replacement, and interior updates, to significantly increase its resale and rental value.

Repairs flagged

• Major Porch flooring — Worn-out and in need of replacement
• Major Landscaping — Overgrown vegetation and debris
• Minor Exterior walls — No visible damage

Value-add opportunities

• Both Landscaping and exterior maintenance — Improves curb appeal and property value
• Both Porch flooring replacement — Enhances functionality and aesthetics
• Both Interior updates — Improves living space and adds value

Renovation cost estimate screening

Repair item	Severity	Est. cost
Porch flooring · Worn-out and in need of replacement	Major	$15,000–50,000
Landscaping · Overgrown vegetation and debris	Major	$15,000–50,000
Exterior walls · No visible damage	Minor	$500–3,000
Total estimated repair cost · 3 items		$30,500–103,000

Value-add ROI direction

• Both Landscaping and exterior maintenance — Improves curb appeal and property value ↑
• Both Porch flooring replacement — Enhances functionality and aesthetics ↑
• Both Interior updates — Improves living space and adds value ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Shelby County
• NCES district ID: 0103030
• Math proficiency: 30% ▼ -28.00%
• Reading proficiency: 58% ▲ 2.00%
• Median HH income: $66,672
• Composite: 39.29/100
• National rank: #3995
• State rank: #16 of 129 in AL

Livability — Sterrett

• Score: 53/100
• State rank: #475
• US rank: #24309

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Sterrett, AL
• Population (ZIP): 6,971

Population outlook (Shelby County) Hauer SSP2

• Today (2025): 237,024 people
• By 2030: 249,868 · +5.4%
• By 2040: 272,778 · +15.1%
• By 2050: 291,062 · +22.8%
• By 2075: 326,049 · +37.6%
• By 2100: 335,870 · +41.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (76%)
• Race & ethnicity: White 76% Hispanic / Latino 10% Black 10% Two or more races 10%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Serbian 3% Slovak 1% Lithuanian 1%
• Foreign-born: 4% · Canada
• Languages at home: 90% English-only · Spanish 9%

Political lean MEDSL · Shelby

• 2024 margin: Solid R (+40.9) · D 29.0% · R 69.9% · Other 1.1%
• 2008→2024 swing: +12.6pp toward D · 2008: -53.4pp · 2024: -40.9pp
• All cycles: 2024: R+40.9 2020: R+40.4 2016: R+50.3 2012: R+55.6 2008: R+53.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.70%
• Current HPI: 200.0103
• 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

1 event — show timeline

• 2026-03-04 Listed $140,000 Greater Alabama MLS