225 Markate Ave · Muscle Shoals, AL 35661

$239,900

3 bd · 2.0 ba · 1,300 sqft · SingleFamily · 82 Days on market

Built 2025 9,583 sqft lot Est $190k · 26% over ↓ 7% since listing

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Why this score? — see what drove the F 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 +11.5/30.0
• Schools +4.4/10.0
• DSCR +3.4/10.0
• Livability +3.4/5.0
• 1% rule +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Listing remarks

Welcome to this stunning 3bed/2bath new construction home located within the Muscle Shoals city limits. With its fresh design & high-quality finishes, this home is perfect for those seeking modern comfort & style. The home features neutral tones throughout. The spacious living room is enhanced by a vaulted ceiling with a charming wooden beam, creating an inviting & open atmosphere. In the kitchen, you'll find sleek quartz countertops, stainless steel appliance package, subway tile backsplash, a pantry. , & and island. The primary suite offers a trey ceiling, private bath w/ double sinks, quartz countertops, walk-in closet, & a beautifully tiled tub surround. Oth

Key facts

• Pantry
• Quartz countertops
• Wooden beam

Tags

• NEW CONSTRUCTION
• VAULTED CEILING
• WOODEN BEAM
• QUARTZ COUNTERTOPS
• SUBWAY TILE BACKSPLASH
• PANTRY

Property features AI

Exterior

• Utilities: Public sewer
• Home design: Single-family residence; Residential property
• Construction: Above-grade finished area approximately 1,300
• Exterior features: 75 ft frontage; Lot dimensions 75 x 130; 0.22-acre lot

Interior

• Bedrooms: 2 bedrooms on the main level
• Bathrooms: 2 full bathrooms
• Interior features: Total of 8 rooms

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $240k.

Deal economics

• At list price, monthly cash flow is $-78 ($-935/yr) — negative.
• To cash-flow at today's rent, offer at most $229k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (16.6% below list).
• Recommended offer: $200k (16.6% below list) — sets the bar for 1% rule.
• Cap rate 5.9% vs local median 2.8% in Muscle Shoals — 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 68/100 on livability (#68 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: amenities F, commute F.
• Muscle Shoals City (urban): math 42% / reading 60% proficiency, ranked #11 of 129 in AL (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 254 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 91 units permitted in Colbert County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Colbert County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 82 days — a 6% lower offer ($226k) is reasonable based on typical stale-listing flexibility.

Recommended offer $200,000 (16.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 82 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
6. 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?
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: 0.83% ✗
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• GRM: 10.0

CMA / ARV

• ARV (on-the-fly): $189,800
• Comps found: 4

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
225 Markate Ave	0.00mi	3/2.0	1,300 (0%)	1mo	$238,400	$183	99
114 Tennessee River Dr	0.51mi	3/2.0	1,286 (-1%)	19mo	$185,000	$144	58
111 Blake Ave	0.46mi	3/2.0	1,369 (+5%)	20mo	$200,000	$146	53
111 High Point Ave	0.69mi	3/1.0	1,325 (+2%)	17mo	$165,000	$125	46

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -18.6%
• Equity multiple: 0.35×
• Total profit: $-43,805
• Equity at exit: $35,770

10-year hold

• IRR: -11.0%
• Equity multiple: 0.34×
• Total profit: $-44,410
• Equity at exit: $20,742

Cash invested: $67,172 (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 35661

• Active inventory: 254
• Price-to-rent: 10.0×

Monthly cashflow live

• Estimated rent: $2,000 medium
• Mortgage (P&I): −$1,258
• Tax est. 1.5%: −$300 /mo · $3,598/yr
• Insurance: −$100
• HOA: −$0
• Vacancy / Maint / Mgmt: −$420
• Net cashflow: $-78

Break-even live

Break-even rent $2,099

Max offer price $228,628

Occupancy floor 99%

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: $59,975
• Closing costs: $7,197
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
110 Pinewood Dr Muscle Shoals, AL	2.0	2.0	1200	$2,000	$1.67	44d	1	1.26mi

Listing history 4 events

1. 2026-05-01
   status Pending
2. 2026-04-14
   price $239,900
3. 2026-03-11
   price $249,900
4. 2026-02-08
   listed $259,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $24,000
• − Mortgage interest: −$13,438
• − Property taxes: −$3,598
• − Insurance: −$1,200
• − Repairs & maintenance: −$1,920
• − Management: −$1,920
• − Depreciation: −$6,979
• Taxable loss: −$5,055
• Est. tax savings @ 24.0%: +$1,213
• After-tax cash flow: $278/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: Muscle Shoals City
• NCES district ID: 0102520
• Math proficiency: 42% ▼ -28.00%
• Reading proficiency: 60% ▼ -1.00%
• Median HH income: $50,688
• Composite: 43.61/100
• National rank: #2969
• State rank: #11 of 129 in AL

Livability — Muscle Shoals

• Score: 68/100
• State rank: #68
• US rank: #9422

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Muscle Shoals, AL
• Population (ZIP): 18,957

Population outlook (Colbert County) Hauer SSP2

• Today (2025): 54,154 people
• By 2030: 53,746 · -0.8%
• By 2040: 52,431 · -3.2%
• By 2050: 50,303 · -7.1%
• By 2075: 44,789 · -17.3%
• By 2100: 36,676 · -32.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (78%)
• Race & ethnicity: White 78% Black 14% Two or more races 5% Hispanic / Latino 5%
• Common ancestry: Slovak 2% Serbian 1% Iranian 1%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 2% Other Indo-European 1%

Political lean MEDSL · Colbert

• 2024 margin: Solid R (+46.4) · D 26.4% · R 72.8%
• 2008→2024 swing: -26.2pp toward R · 2008: -20.3pp · 2024: -46.4pp
• All cycles: 2024: R+46.4 2020: R+38.9 2016: R+38.3 2012: R+20.4 2008: R+20.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -103.94%
• Current HPI: 174.6414
• 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

-7.4% since first listed

4 events — show timeline

• 2026-05-01 Pending — SAARMLS
• 2026-04-14 Price Changed $239,900 SAARMLS
• 2026-03-11 Price Changed $249,900 SAARMLS
• 2026-02-08 Listed $259,000 SAARMLS