1160 Lee Road 76

Waverly, AL 36879

$110,000C-

3 bd · 1.0 ba · 816 sqft · Built 1991 · SingleFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,007/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$115
• HOA: −$0
• Vac / Maint / Mgmt: −$211
• Net cashflow: $104/mo
• Annual: $1,245/yr
• Cap rate: 7.43%
• Cash-on-cash: 4.04%
• DSCR: 1.18
• 1% rule: 0.92%
• Cash to close: $30,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $110k.
• At list price, monthly cash flow is $104 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (8.5% below list).
• It's been on market 28 days — a 2% lower offer ($108k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (8.5% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($761 loan paydown + $3k appreciation (2.9% local appreciation)).
• Location reads 70/100 on livability (#45 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living A; Watch: amenities F, commute F, health & safety F.
• Lee County (rural): math 23% / reading 47% proficiency, ranked #40 of 129 in AL (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Loachapoka Elementary School (math 12% / reading 27%, grade F, #467 of 627 statewide, top 76%, 334 students, 85% FRL); Sanford Middle School (math 27% / reading 46%, grade F, #76 of 257 statewide, top 31%, 545 students, 74% FRL); Loachapoka High School (math 12% / reading 32%, grade F, #142 of 305 statewide, top 51%, 237 students, 92% FRL) — zoned schools average 84% FRL vs 48% district-wide (36 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 66 active listings in the ZIP; 1,858 units permitted in Lee County in 2024 (113 in 5+ unit buildings).
• Lee County population projected at +54% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 6y ago 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.
• Current owner paid $80k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (2.9% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 58% chance of damaging wind over 30y; moderate wildfire risk; 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

• 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?
• 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.
• 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.