8721 2nd Ct N · Birmingham, AL 35206

$19,500

3 bd · 1.0 ba · 1,160 sqft · SingleFamily public records · 28 Days on market

Built 1928 5,488 sqft lot ↓ 15% since listing

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Why this score? — see what drove the D 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 +15.0/30.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Livability +3.4/5.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Schools +0.9/10.0
• Appreciation +0.0/10.0

Listing remarks

Prime opportunity for investors looking to capitalize on a rapidly improving pocket of Birmingham. The area continues to attract large institutional buyers and redevelopment companies, creating strong momentum for potential appreciation. This property is ideal for a value-add rehab, update it, reposition it, and tap into the rising demand for renovated homes. With ongoing activity from bigger players in the market, future growth indicators are potentially favorable, making this a potentially smart pick-up for any investor’s portfolio.

Key facts

• 5,488 sq ft lot
• Garage
• Built 1928

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $20k.

Deal economics

• At list price, monthly cash flow is $806 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $20k).
• Recommended offer: $19k (1.5% below list) — sets the bar for market timing.
• Cap rate 55.9% vs local median 6.2% in Birmingham — 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 67/100 on livability (#78 in AL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities C-, crime F, employment F.
• Birmingham City (urban): math 4% / reading 20% proficiency, ranked #116 of 129 in AL (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Robinson Elementary School (math 2% / reading 12%, grade F, #601 of 627 statewide, top 98%, 344 students, 85% FRL); Woodlawn High Schoolmagnet (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 738 students, 91% FRL).
• Market conditions: Rents rising (+1.8%/yr); 128 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); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).
• This rent runs 34% of the median local income ($43k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $135 of loan paydown is wiped out by about $585 of value loss. Plan a longer hold.
• Jefferson County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 1.8% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• It's been on market 28 days — a 2% lower offer ($19k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• 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.

Recommended offer $19,207 (1.5% below list)

Questions for the listing agent

1. Built in 1928 — 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. 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?
4. 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?
5. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
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: 6.16% ✓
• Cap rate: 55.90%
• Cash-on-cash: 177.17%
• DSCR: 8.88
• GRM: 1.4

CMA / ARV

• ARV (on-the-fly): $97,440
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
8606 N 2nd Ave	0.14mi	3/1.0	1,130 (-3%)	7mo	$95,100	$84	84
8313 3rd Ave S	0.71mi	3/1.0	1,195 (+3%)	2mo	$90,000	$75	61
9051 9th Ave N	0.69mi	3/1.0	1,109 (-4%)	0mo	$22,000	$20	60
306 S 83rd St	0.75mi	3/1.0	1,176 (+1%)	13mo	$88,000	$75	52
8405 3rd Ave S	0.64mi	3/1.0	1,232 (+6%)	10mo	$65,000	$53	52
225 S 86th Pl	0.49mi	3/1.0	1,072 (-8%)	18mo	$114,950	$107	50
8236 2nd Ave S	0.69mi	3/1.0	1,326 (+14%)	2mo	$57,750	$44	42
411 Valley Rd	0.72mi	3/2.0	1,252 (+8%)	8mo	$110,000	$88	42
315 85th St S	0.61mi	3/1.0	1,323 (+14%)	8mo	$155,860	$118	42
8429 4th Ave S	0.68mi	3/2.0	1,256 (+8%)	19mo	$92,000	$73	35
8334 4th Ave S	0.70mi	2/1.0 (-1)	1,029 (-11%)	11mo	$128,750	$125	34
8409 3rd Ave S	0.64mi	3/2.0	1,304 (+12%)	18mo	$158,000	$121	31

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 · 1.82% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 9.57×
• Total profit: $46,797
• Equity at exit: $2,908

10-year hold

• IRR: —
• Equity multiple: 19.55×
• Total profit: $101,309
• Equity at exit: $1,686

Cash invested: $5,460 (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 35206

• Home prices YoY: -32.0%
• Rents YoY: 1.8%
• Active inventory: 128
• Price-to-rent: 1.4×

Monthly cashflow live

• Estimated rent: $1,201 high
• Mortgage (P&I): −$102
• Tax from tax record: −$32 /mo · $386/yr
• Insurance: −$8
• HOA: −$0
• Vacancy / Maint / Mgmt: −$252
• Net cashflow: $806

Break-even live

Break-even rent $180

Max offer price $19,500

Occupancy floor 28%

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: $4,875
• Closing costs: $585
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
8416 Division Ave Birmingham, AL	3.0	2.0	1470	$1,350	$0.92	43d	1	0.43mi
8333 4th Ave N Birmingham, AL	4.0	2.0	1384	$1,300	$0.94	43d	1	0.44mi
8300 4th Ave N Birmingham, AL	4.0	2.0	1455	$1,300	$0.89	43d	1	0.52mi
8513 4th Ave S Birmingham, AL	3.0	1.0	1150	$1,150	$1.00	43d	1	0.62mi
8917 Roebuck Blvd Apt 11 Birmingham, AL	2.0	1.0	880	$725	$0.82	16d	1	0.64mi
8240 2nd Ave S Birmingham, AL	2.0	1.0	990	$875	$0.88	23d	1	0.66mi
425 87th St S Birmingham, AL	2.0	1.0	890	$1,077	$1.21	43d	1	0.67mi
8408 5th Ave S Birmingham, AL	3.0	1.0	1100	$1,528	$1.39	43d	1	0.73mi
8408 5th Ave S Birmingham, AL	3.0	1.0	890	$1,295	$1.46	10d	1	0.73mi
8149 1st Ave S Birmingham, AL	3.0	2.0	1300	$1,200	$0.92	43d	1	0.75mi
8128 2nd Ave S Birmingham, AL	4.0	1.0	1390	$1,150	$0.83	23d	1	0.82mi
8202 4th Ave S Birmingham, AL	3.0	1.0	1178	$1,075	$0.91	43d	1	0.83mi
8129 2nd Ave S Unit B Birmingham, AL	2.0	1.0	900	$800	$0.89	43d	1	0.85mi
8020 4th Ave N Birmingham, AL	3.0	1.0	1200	$1,200	$1.00	43d	1	0.87mi
8108 4th Ave S Birmingham, AL	3.0	2.0	1384	$1,200	$0.87	43d	1	0.92mi
624 83rd Pl S Birmingham, AL	2.0	1.0	780	$975	$1.25	43d	1	0.93mi
8211 Rugby Ave Birmingham, AL	4.0	1.0	966	$1,250	$1.29	43d	1	0.93mi
8021 1st Ave S Unit A Birmingham, AL	3.0	1.0	980	$950	$0.97	23d	1	0.94mi
636 83rd Pl S Birmingham, AL	2.0	2.0	1062	$1,175	$1.11	43d	1	0.95mi
8035 4th Ave S Birmingham, AL	3.0	2.0	1096	$1,050	$0.96	43d	1	1.02mi
8242 Vassar Ave Birmingham, AL	4.0	1.0	1212	$1,100	$0.91	43d	1	1.02mi
426 Buckingham Cir Birmingham, AL	2.0	1.5	1080	$1,013	$0.94	43d	1	1.05mi
512 81st St S Birmingham, AL	3.0	1.0	1156	$1,150	$0.99	43d	1	1.05mi
514 81st St S Birmingham, AL	4.0	2.0	1174	$1,295	$1.10	43d	1	1.06mi
730 82nd Pl S Birmingham, AL	3.0	1.0	896	$1,023	$1.14	3d	1	1.09mi
745 82nd Pl S Birmingham, AL	3.0	2.0	1200	$1,168	$0.97	2d	1	1.11mi
8122 Rugby Ave Unit B Birmingham, AL	2.0	1.0	900	$795	$0.88	43d	1	1.14mi
731 81st St S Birmingham, AL	3.0	1.0	1221	$995	$0.81	10d	1	1.15mi
735 81st St S Birmingham, AL	3.0	2.0	1224	$1,400	$1.14	23d	1	1.17mi
7829 3rd Ave S Birmingham, AL	3.0	1.5	1005	$1,025	$1.02	43d	1	1.17mi
775 81st Pl S Birmingham, AL	3.0	1.0	1232	$1,095	$0.89	23d	1	1.23mi
7931 7th Ave S Birmingham, AL	3.0	1.0	1320	$1,450	$1.10	43d	1	1.23mi
7801 3rd Ave S Unit B Birmingham, AL	2.0	1.5	1100	$1,000	$0.91	43d	1	1.23mi
7815 4th Ave S Birmingham, AL	3.0	2.0	1496	$1,650	$1.10	1d	1	1.24mi
764 81st St S Unit B Birmingham, AL	2.0	1.0	800	$800	$1.00	43d	1	1.26mi
7728 1st Ave S Apt C Birmingham, AL	2.0	1.0	950	$950	$1.00	43d	1	1.27mi
8013 Rugby Ave Birmingham, AL	3.0	2.0	1460	$1,150	$0.79	23d	1	1.28mi
8229 9th Ave S Birmingham, AL	2.0	1.0	997	$1,195	$1.20	3d	1	1.29mi
7721 1st Ave S Birmingham, AL	3.0	1.0	956	$949	$0.99	23d	1	1.30mi
8621 10th Ave S Birmingham, AL	3.0	2.0	1240	$1,400	$1.13	23d	1	1.30mi

Listing history 3 events

1. 2025-12-27
   status Pending
2. 2025-12-19
   price $19,500
3. 2025-11-29
   listed $23,000 Active

ⓘ 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: $386 · $32/mo
• Projected year-2 tax: $386 · $32/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 2/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥105°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 5/10 Major 7 unhealthy d/yr today · 9 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,410
• − Mortgage interest: −$1,092
• − Property taxes: −$386
• − Insurance: −$98
• − Repairs & maintenance: −$1,153
• − Management: −$1,153
• − Depreciation: −$567
• Taxable income: $9,962
• Est. tax owed @ 24.0%: −$2,391
• After-tax cash flow: $7,283/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: Birmingham City
• NCES district ID: 0100390
• Math proficiency: 4% ▼ -17.00%
• Reading proficiency: 20% ▼ -4.00%
• Median HH income: $31,988
• Composite: 9.49/100
• National rank: #9850
• State rank: #116 of 129 in AL

Livability — Birmingham

• Score: 67/100
• State rank: #78
• US rank: #10412

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Birmingham, AL
• County: Jefferson County · 527,445 people
• City population: 210,422
• Metro: Birmingham-Hoover, AL
• Population (ZIP): 15,621
• Household income: $42,549
• Rent vs Own: 51.1% rent · 48.9% own
• Severe rent burden: 1169.0

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 669,185 people
• By 2030: 669,694 · +0.1%
• By 2040: 661,388 · -1.2%
• By 2050: 643,086 · -3.9%
• By 2075: 577,267 · -13.7%
• By 2100: 474,758 · -29.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (73%)
• Race & ethnicity: Black 73% White 22% Two or more races 3% Hispanic / Latino 2%
• Common ancestry: Slovak 1%
• Foreign-born: 3% · Canada
• Languages at home: 97% English-only · Spanish 2% Other Indo-European 0%

Political lean MEDSL · Jefferson

• 2024 margin: D (+10.4) · D 54.6% · R 44.2% · Other 1.2%
• 2008→2024 swing: +5.4pp toward D · 2008: 5.1pp · 2024: 10.4pp
• All cycles: 2024: D+10.4 2020: D+13.2 2016: D+7.2 2012: D+6.0 2008: D+5.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -68.70%
• Current HPI: 146.2168
• Rent YoY: ▲ 1.82%
• Metro: Birmingham-Hoover, 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

-15.2% since first listed

3 events — show timeline

• 2025-12-27 Pending — Greater Alabama MLS
• 2025-12-19 Price Changed $19,500 Greater Alabama MLS
• 2025-11-29 Listed $23,000 Greater Alabama MLS

Property tax history

-0.5%/yr

Latest (2025): $386 · +0.0% YoY. Source: county tax records.