3896 County Rd 38

Eutaw, AL 36776

$144,500D+

3 bd · 2.0 ba · 1,442 sqft · Built 1978 · SingleFamily · Active · 83 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,214/mo
• Mortgage (P&I): −$758
• Tax + insurance: −$366
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $-165/mo
• Annual: $-1,976/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.17%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $40,460

Investor read

• This is a 3-bed/2.0-bath single-family listed at $144k.
• At list price, monthly cash flow is $-165 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $121k (16.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (16.0% below list).
• It's been on market 83 days — a 6% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (16.5% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($999 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 55/100 on livability (#442 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety D, crime F, amenities F.
• Hale County (rural): math 6% / reading 31% proficiency, ranked #109 of 129 in AL (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Greensboro Elementary School (math 4% / reading 31%, grade F, #484 of 627 statewide, top 77%, 554 students, 78% FRL); Greensboro Middle School (math 2% / reading 17%, grade F, #227 of 257 statewide, top 90%, 232 students, 88% FRL); Greensboro High School (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 294 students, 84% FRL) — zoned schools average 83% FRL vs 68% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 3 active listings in the ZIP; 11 units permitted in Hale County in 2024 (0 in 5+ unit buildings).
• Hale County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 9y ago; this cycle's ask has dropped $14k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $85k; list at $144k implies a 70% gain — meaningful room to come down on a strong offer.
• By year 7, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wind risk, 64% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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?
• It's been on market 83 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?