1111 1st Pl NW #1

Arab, AL 35016

$162,500D

4 bd · 1.5 ba · 1,643 sqft · Built 1973 · SingleFamily · Active · 46 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,250/mo
• Mortgage (P&I): −$852
• Tax + insurance: −$271
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $-136/mo
• Annual: $-1,626/yr
• Cap rate: 5.29%
• Cash-on-cash: -3.57%
• DSCR: 0.84
• 1% rule: 0.77%
• Cash to close: $45,500

Investor read

• This is a 4-bed/1.5-bath single-family listed at $162k. Condition is rated good.
• At list price, monthly cash flow is $-136 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $143k (12.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (23.1% below list).
• It's been on market 46 days — a 3% lower offer ($158k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (23.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#149 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D, amenities F.
• Arab City (rural): math 47% / reading 64% proficiency, ranked #9 of 129 in AL (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Arab Elementary School (math 59% / reading 73%, grade B+, #36 of 627 statewide, top 6%, 580 students, 52% FRL); Arab High School (math 37% / reading 47%, grade F, #28 of 305 statewide, top 10%, 779 students, 40% FRL) — zoned schools average 46% FRL vs 29% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 178 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 163 units permitted in Marshall County in 2024 (0 in 5+ unit buildings).
• Cap rate 5.3% vs local median 3.0% in Arab — 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.

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 46 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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?
• 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?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Backsplash — Dated and could be replaced for a fresh look
• Minor: Appliances — Older models that could be upgraded for a more modern feel
• Minor: Bathroom Fixtures — Older fixtures that could be replaced for a more modern look