5541 Court P · Birmingham, AL 35208

$40,000

2 bd · 1.0 ba · 1,035 sqft · SingleFamily public records · 3 Days on market

Built 1940 6,534 sqft lot $39/sqft · 50% below area Est $79k · 50% under

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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 +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Rent growth +4.3/5.0
• Livability +3.4/5.0
• Condition / age +2.5/5.0
• Schools +0.9/10.0
• Appreciation +0.0/10.0

Listing remarks

This income-producing investment opportunity was previously rented through Section 8 at $1,000/month, with a $993 housing authority subsidy, offering strong cash flow potential at a $40,000 price point. This 2-bedroom, 1-bath home offers 1,035 square feet, a screened front porch, detached 1-car garage, private alley access, and off-street parking. The property will need repairs and updates before Section 8 re-approval, creating a strong value-add opportunity for investors looking to improve returns and long-term performance. Detached garage adds additional tenant appeal with storage, parking, or workshop flexibility. Conveniently located near major roads, shopping, schools, and everyday ess

Key facts

• Screened front porch
• Private alley access
• Off-street parking

Tags

• SCREENED FRONT PORCH
• PRIVATE ALLEY ACCESS
• OFF-STREET PARKING
• DETACHED GARAGE
• ESTABLISHED RENTAL AREA

Property features AI

Finance

• Other: Tax district: Birmingham
• Financial info: Down payment assistance available
• HOA & community: No association fee

Exterior

• Parking: Detached garage with rear garage entry; On-street parking; Additional parking (m-level)
• Security: No specific security features listed
• Utilities: Public water; Connected sewer; Electric water heater; Internet service availability unknown
• Home design: Existing (previously built) home; Entry and all main rooms on main level; Not a tri-level, split-level, split-foyer, loft, or log home; Lot in subdivision; Lot number 11
• Construction: Siding (other) exterior; Crawl space foundation
• Exterior features: Fenced yard; Screened porch; Sidewalks and street lights; Subdivision setting

Interior

• Kitchen: Electric stove; Eating area; Laminate countertops
• Bedrooms: Bedrooms located on main level
• Flooring: Carpet
• Bathrooms: One full bathroom with tub/shower combo
• Heating & cooling: Central heating (electric); Central cooling (electric)
• Interior features: Carpet floors; Brick wood-burning fireplace in the living room; Ceilings: other (see remarks); No additional built-in interior features listed
• Laundry & utility: Main-level laundry room; Washer hookup and electric dryer hookup

🏷️ Possibly a rental listed for sale. The $40,000 price doesn't fit this home's estimated sale value (~$79,330) and the remarks read like a rental — treat the cards below with caution.

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $496 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Cap rate 21.2% 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: Central Park Elementary School (math 0% / reading 12%, grade F, #616 of 627 statewide, top 98%, 447 students, 83% FRL) — zoned schools at 83% FRL track the district average.
• Market conditions: Rents rising fast (+7.2%/yr); 122 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 68% 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 33% of the median local income ($39k/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 $277 of loan paydown is wiped out by about $1k 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 + 7.2% rent growth), your $11k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: property tax is 3.4% of price; built in 1940 — 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 $40,000

Questions for the listing agent

1. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
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: 2.64% ✓
• Cap rate: 21.17%
• Cash-on-cash: 53.12%
• DSCR: 3.36
• GRM: 3.2

CMA / ARV

• ARV (median comp): $79,330
• List price: $40,000
• Delta: -49.58%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
5541 Court P	0.00mi	2/1.0	1,035 (0%)	1mo	$35,000	$34	99
5800 Court Q	0.14mi	3/1.0 (+1)	1,024 (-1%)	2mo	$111,000	$108	85
5625 Avenue Q	0.06mi	3/1.0 (+1)	1,103 (+7%)	3mo	$22,000	$20	79
5621 Avenue Q	0.06mi	3/1.0 (+1)	1,136 (+10%)	1mo	$72,000	$63	75
1560 Meadow Ln	0.35mi	3/1.0 (+1)	1,008 (-3%)	1mo	$87,000	$86	74
1509 Burgin Ave	0.30mi	3/1.0 (+1)	1,011 (-2%)	5mo	$17,500	$17	73
1407 57th Pl W	0.31mi	3/1.0 (+1)	1,084 (+5%)	4mo	$79,000	$73	70
6144 Court M	0.58mi	3/1.0 (+1)	1,066 (+3%)	2mo	$76,000	$71	61
4929 Avenue R	0.54mi	2/1.0	962 (-7%)	5mo	$43,000	$45	59
2724 Lee Ave SW	0.55mi	3/1.0 (+1)	960 (-7%)	1mo	$72,000	$75	56
5512 Terrace J	0.64mi	3/1.0 (+1)	972 (-6%)	3mo	$22,000	$23	52
1409 66th St W	0.68mi	3/1.5 (+1)	1,161 (+12%)	4mo	$95,000	$82	38

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 · 7.24% rent growth · sell at horizon

5-year hold

• IRR: 56.3%
• Equity multiple: 3.67×
• Total profit: $29,848
• Equity at exit: $5,964

10-year hold

• IRR: 63.0%
• Equity multiple: 8.85×
• Total profit: $87,924
• 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 35208

• Home prices YoY: -18.1%
• Rents YoY: 7.2%
• Active inventory: 122
• Price-to-rent: 3.2×

Monthly cashflow live

• Estimated rent: $1,057 high
• Mortgage (P&I): −$210
• Tax from tax record: −$113 /mo · $1,351/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$222
• Net cashflow: $496

Break-even live

Break-even rent $429

Max offer price $40,000

Occupancy floor 48%

Sensitivity live

Price	-10% $518	-5% $507	+0% $496	+5% $484	+10% $473
Rent	-10% $412	-5% $454	+0% $496	+5% $538	+10% $579
Rate	-1.0pp $516	-0.5pp $506	base $496	+0.5pp $485	+1.0pp $475

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: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5713 Avenue P Unit P Birmingham, AL	3.0	1.0	1300	$1,100	$0.85	20d	1	0.11mi
5516 Avenue P Birmingham, AL	2.0	1.0	888	$1,000	$1.13	44d	1	0.12mi
5820 Court Q Birmingham, AL	3.0	1.0	902	$1,200	$1.33	44d	1	0.16mi
5320 Ter Q Unit Q Birmingham, AL	3.0	2.0	1116	$1,250	$1.12	44d	1	0.17mi
5832 Court Q Birmingham, AL	3.0	1.0	912	$950	$1.04	45d	1	0.18mi
5219 Court Q Birmingham, AL	3.0	2.0	1082	$1,200	$1.11	20d	1	0.20mi
5717 Avenue O Unit O Birmingham, AL	3.0	2.0	1029	$1,250	$1.21	44d	1	0.22mi
5725 Avenue O Unit O Birmingham, AL	3.0	1.0	957	$1,073	$1.12	24d	1	0.23mi
5808 Court O Birmingham, AL	3.0	1.5	1227	$1,100	$0.90	44d	1	0.24mi
5211 Ter Q Unit Q Birmingham, AL	2.0	1.0	756	$775	$1.03	44d	1	0.25mi
1632 51st Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.0	1337	$1,100	$0.82	44d	1	0.29mi
1632 51st St W Birmingham, AL	3.0	1.0	1337	$1,000	$0.75	2d	1	0.30mi
1781 51st Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.5	1069	$950	$0.89	44d	1	0.35mi
1012 33rd St SW Birmingham, AL	1.0–2.0	1.0–2.0	800	$750	$0.94	3d	1	0.41mi
1606 49th Street Ensley Unit ENSLEY Birmingham, AL	3.0	2.0	1136	$1,100	$0.97	44d	1	0.42mi
709 30th St SW Birmingham, AL	3.0	1.0	1273	$1,000	$0.79	44d	1	0.43mi
1556 Burgin Ave Birmingham, AL	3.0	1.0	1168	$1,100	$0.94	22d	1	0.43mi
1340 Pineview Rd Birmingham, AL	3.0	2.0	1116	$1,075	$0.96	44d	1	0.44mi
3116 Steiner Ave SW Birmingham, AL	3.0	1.0	1362	$1,200	$0.88	44d	1	0.49mi
4929 Avenue R Unit R Birmingham, AL	2.0	1.0	962	$950	$0.99	44d	1	0.51mi
1429 47th Street Ensley Unit ENSLEY Birmingham, AL	2.0	1.0	768	$750	$0.98	44d	1	0.57mi
4619 Terrace Q Birmingham, AL	3.0	2.0	1198	$900	$0.75	44d	1	0.60mi
4724 Court R Birmingham, AL	2.0	1.0	1016	$895	$0.88	15d	1	0.62mi
612 26th St SW Birmingham, AL	2.0	1.0	988	$825	$0.84	44d	1	0.62mi
1272 Meadow Ln Birmingham, AL	2.0	1.0	744	$800	$1.08	44d	1	0.65mi
5710 Monte Sano Dr Birmingham, AL	2.0	1.0	700	$950	$1.36	44d	1	0.66mi
1515 45th Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.0	1440	$875	$0.61	4d	1	0.66mi
1410 46th Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.0	1200	$1,000	$0.83	44d	1	0.68mi
1045 57th St Birmingham, AL	1.0	1.0	700	$775	$1.11	44d	1	0.69mi
2519 Saint Charles Ave SW Birmingham, AL	2.0	1.0	990	$975	$0.98	45d	1	0.70mi
1509 44th Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.5	1260	$1,123	$0.89	12d	1	0.73mi
1604 44th Street Ensley Unit ENSLEY Birmingham, AL	3.0	1.0	1100	$1,200	$1.09	24d	1	0.73mi
4825 Avenue S Birmingham, AL	3.0	1.0	1310	$1,050	$0.80	16d	1	0.74mi
4801 Avenue S Birmingham, AL	3.0	1.0	1310	$1,000	$0.76	44d	1	0.76mi
1607 43rd Street Ensley Unit ENSLEY Birmingham, AL	3.0	2.0	1435	$1,150	$0.80	24d	1	0.76mi
1112 47th St W Birmingham, AL	2.0	1.0	1166	$975	$0.84	44d	1	0.77mi
5712 Monte Sano Rd Birmingham, AL	2.0	1.0	700	$900	$1.29	44d	1	0.78mi
4736 Court S Birmingham, AL	3.0	1.5	1300	$1,200	$0.92	4d	1	0.80mi
4732 Court S Birmingham, AL	3.0	1.0	1372	$1,100	$0.80	44d	1	0.81mi
407 S Park Rd SW Birmingham, AL	3.0	1.0	1050	$900	$0.86	44d	1	0.81mi

Listing history 3 events

1. 2026-05-18
   status Pending 866-char remark
2. 2026-05-15
   listed $40,000 Active 866-char remark
3. 1980-09-01
   soldstatus $26,000

ⓘ 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: $1,351 · $113/mo
• Projected year-2 tax: $1,351 · $113/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 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,681
• − Mortgage interest: −$2,241
• − Property taxes: −$1,351
• − Insurance: −$200
• − Repairs & maintenance: −$1,014
• − Management: −$1,014
• − Depreciation: −$1,164
• Taxable income: $5,696
• Est. tax owed @ 24.0%: −$1,367
• After-tax cash flow: $4,582/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): 13,412
• Household income: $38,561
• Rent vs Own: 35.8% rent · 64.2% own
• Severe rent burden: 573.0

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 (94%)
• Race & ethnicity: Black 94% White 4% Hispanic / Latino 2% Two or more races 1%
• Foreign-born: 3% · Canada
• Languages at home: 96% English-only · Spanish 2%

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: ▼ -33.99%
• Current HPI: 153.414
• Rent YoY: ▲ 7.24%
• 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

+34.6% since first listed

6 events — show timeline

• 2026-05-28 Sold (MLS) $35,000 Greater Alabama MLS
• 2026-05-20 Pending — Greater Alabama MLS
• 2026-05-19 Relisted — Greater Alabama MLS
• 2026-05-18 Pending — Greater Alabama MLS
• 2026-05-15 Listed $40,000 Greater Alabama MLS
• 1980-09-01 Sold (Public Records) $26,000 Public Records

Property tax history

+3.6%/yr

Latest (2025): $1,351 · +0.0% YoY. Source: county tax records.