404 Riley St · Gadsden, AL 35901

$39,900

3 bd · 1.0 ba · 1,594 sqft · SingleFamily public records · 28 Days on market

Built 1941 10,018 sqft 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
• Livability +3.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.2/10.0
• Appreciation +0.0/10.0

Listing remarks

ATTENTION INVESTORS!! Already demoed and wide open, this 3 bed, 1 bath, 1,597± sqft property is primed for someone with a vision and the team to execute it. A dedicated kitchen, formal dining room, and generously sized bedrooms give you a great layout to work with. Those soaring ceilings? Imagine what they look like finished — dramatic living spaces that buyers fall in love with at first showing. The work has already begun. . Bring your hard hat and vision to bring this home back to life! Cash or conventional only. AS/IS.

Key facts

• Formal dining room
• Soaring ceilings
• Dedicated kitchen

Tags

• DEDICATED KITCHEN
• FORMAL DINING ROOM
• SOARING CEILINGS
• DRAMATIC LIVING SPACES

Property features AI

Finance

• Other: Lot approximately 0.23 acres (about 50 x 195); Subdivision: Gadsden
• HOA & community: No association

Exterior

• Parking: Gravel driveway
• Utilities: Public water; Public sewer; Electric service
• Home design: Single-family residence; One story; Built in 1941
• Construction: Vinyl siding
• Exterior features: Covered porch; Public water; Public sewer

Interior

• Kitchen: Electric water heater
• Bathrooms: 1 full bathroom
• Interior features: Crawl space basement; Central heating and central cooling

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $672 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Recommended offer: $39k (1.5% below list) — sets the bar for market timing.
• Cap rate 26.5% vs local median 5.1% in Gadsden — 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 59/100 on livability (#335 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Gadsden City (urban): math 15% / reading 39% proficiency, ranked #87 of 129 in AL (top 67%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: W E Striplin Elementary School (math 5% / reading 21%, grade F, #532 of 627 statewide, top 85%, 464 students, 86% FRL); Gadsden Middle School (math 15% / reading 51%, grade F, #101 of 257 statewide, top 40%, 464 students, 75% FRL); Gadsden City High School (math 17% / reading 24%, grade F, #159 of 305 statewide, top 53%, 1,318 students, 76% FRL).
• Market conditions: 151 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 119 units permitted in Etowah County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Etowah County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 28 days — a 2% lower offer ($39k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1941 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $39,301 (1.5% below list)

Questions for the listing agent

1. Built in 1941 — 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. 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?
4. 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.
5. 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.
6. 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: 2.97% ✓
• Cap rate: 26.50%
• Cash-on-cash: 72.15%
• DSCR: 4.21
• GRM: 2.8

CMA / ARV

• ARV (on-the-fly): $97,234
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
714 N 10th St	0.34mi	3/2.0	1,666 (+4%)	9mo	$55,000	$33	65
1125 Gardner St	0.48mi	4/2.0 (+1)	1,634 (+2%)	10mo	$49,670	$30	56
920 Walnut St	0.70mi	3/2.0	1,625 (+2%)	8mo	$92,000	$57	54
753 Walnut St	0.59mi	3/1.5	1,450 (-9%)	2mo	$135,500	$93	54
1014 Valley Ave	0.56mi	2/1.0 (-1)	1,471 (-8%)	3mo	$89,900	$61	54
906 N 8th St	0.46mi	3/2.0	1,450 (-9%)	9mo	$50,000	$34	52
402 S 8th St	0.70mi	3/2.5	1,600 (+0%)	11mo	$181,000	$113	52
902 Spring St	0.69mi	3/1.5	1,586 (-0%)	19mo	$109,900	$69	49
200 North 6th St	0.38mi	3/1.0	1,380 (-13%)	14mo	$50,000	$36	49
116 Cleveland Ct	0.69mi	3/2.0	1,732 (+9%)	3mo	$217,500	$126	47
1013 Hermosa Ave	0.54mi	3/1.0	1,392 (-13%)	12mo	$89,900	$65	44
716 S 10th St	0.74mi	3/2.0	1,399 (-12%)	3mo	$85,000	$61	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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 71.8%
• Equity multiple: 4.25×
• Total profit: $36,329
• Equity at exit: $5,949

10-year hold

• IRR: 75.7%
• Equity multiple: 8.77×
• Total profit: $86,770
• Equity at exit: $3,450

Cash invested: $11,172 (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 35901

• Home prices YoY: -9.9%
• Active inventory: 151
• Price-to-rent: 2.8×

Monthly cashflow live

• Estimated rent: $1,186 medium
• Mortgage (P&I): −$209
• Tax from tax record: −$39 /mo · $472/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$249
• Net cashflow: $672

Break-even live

Break-even rent $336

Max offer price $39,900

Occupancy floor 38%

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: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1229 Jupiter St Gadsden, AL	3.0	2.0	2034	$1,400	$0.69	44d	1	1.31mi
1001 Newton St Gadsden, AL	2.0	1.5	1200	$955	$0.80	3d	3	1.36mi

Listing history 17 events

1. 2026-06-19
   days on market $39,900 Active 28 DOM
2. 2026-06-18
   days on market $39,900 Active 27 DOM
3. 2026-06-17
   days on market $39,900 Active 26 DOM
4. 2026-06-16
   days on market $39,900 Active 25 DOM
5. 2026-06-15
   days on market $39,900 Active 24 DOM
6. 2026-06-14
   days on market $39,900 Active 22 DOM
7. 2026-06-12
   pricedays on market $39,900 Active 21 DOM
8. 2026-06-09
   days on market $45,000 Active 18 DOM
9. 2026-06-08
   days on market $45,000 Active 17 DOM
10. 2026-06-07
    days on market $45,000 Active 16 DOM
11. 2026-06-07
    days on market $45,000 Active 15 DOM
12. 2026-06-04
    days on market $45,000 Active 12 DOM
13. 2026-06-02
    days on market $45,000 Active 11 DOM
14. 2026-06-01
    days on market $45,000 Active 10 DOM
15. 2026-05-31
    days on market $45,000 Active 9 DOM
16. 2026-05-31
    days on market $45,000 Active 8 DOM
17. 2026-05-22
    listed $45,000 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: $472 · $39/mo
• Projected year-2 tax: $472 · $39/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 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥107°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 21% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,232
• − Mortgage interest: −$2,235
• − Property taxes: −$472
• − Insurance: −$200
• − Repairs & maintenance: −$1,139
• − Management: −$1,139
• − Depreciation: −$1,161
• Taxable income: $7,887
• Est. tax owed @ 24.0%: −$1,893
• After-tax cash flow: $6,168/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: Gadsden City
• NCES district ID: 0101620
• Math proficiency: 15% ▼ -27.00%
• Reading proficiency: 39% ▼ -2.00%
• Median HH income: $29,099
• Composite: 21.62/100
• National rank: #8292
• State rank: #87 of 129 in AL

Livability — Gadsden

• Score: 59/100
• State rank: #335
• US rank: #20131

Category grades

Amenities F Commute F 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: Gadsden, AL
• Population (ZIP): 19,186

Population outlook (Etowah County) Hauer SSP2

• Today (2025): 100,500 people
• By 2030: 98,488 · -2.0%
• By 2040: 93,731 · -6.7%
• By 2050: 88,681 · -11.8%
• By 2075: 76,746 · -23.6%
• By 2100: 65,373 · -35.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.59)
• Race & ethnicity: White 55% Black 32% Hispanic / Latino 8% Two or more races 7%
• Hispanic origin (detail): Mexican 3% Puerto Rican 1%
• Common ancestry: Slovak 1% Serbian 1% Lithuanian 1%
• Foreign-born: 4% · Canada
• Languages at home: 93% English-only · Spanish 5% Arabic 1% Russian/Polish/Slavic 1%

Political lean MEDSL · Etowah

• 2024 margin: Solid R (+55.7) · D 21.8% · R 77.5%
• 2008→2024 swing: -17.5pp toward R · 2008: -38.2pp · 2024: -55.7pp
• All cycles: 2024: R+55.7 2020: R+50.2 2016: R+50.1 2012: R+38.4 2008: R+38.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -26.83%
• Current HPI: 243.6795
• 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

• 2026-05-22 Listed $45,000 VMLS

Property tax history

+11.3%/yr

Latest (2025): $472 · +0.0% YoY. Source: county tax records.