24498 Highway 79

Locust Fork, AL 35172

$95,000B+

3 bd · 2.0 ba · 1,056 sqft · Built 1997 · Other · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,299/mo
• Mortgage (P&I): −$498
• Tax + insurance: −$158
• HOA: −$0
• Vac / Maint / Mgmt: −$273
• Net cashflow: $370/mo
• Annual: $4,434/yr
• Cap rate: 10.96%
• Cash-on-cash: 16.67%
• DSCR: 1.74
• 1% rule: 1.37%
• Cash to close: $26,600

Investor read

• This is a 3-bed/2.0-bath other listed at $95k.
• At list price, monthly cash flow is $370 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $95k).
• It's been on market 17 days — a 2% lower offer ($94k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $94k (1.5% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($657 loan paydown + $10k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#111 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A; Watch: amenities F, commute F, employment D-.
• Blount County (rural): math 20% / reading 45% proficiency, ranked #54 of 129 in AL (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Locust Fork Elementary (math 37% / reading 54%, grade D-, #167 of 627 statewide, top 27%, 519 students, 66% FRL); Hayden Middle School (math 28% / reading 51%, grade F, #61 of 257 statewide, top 24%, 550 students, 44% FRL); Locust Fork High School (math 15% / reading 37%, grade F, #110 of 305 statewide, top 36%, 406 students, 62% FRL).
• Market conditions: 12 active listings in the ZIP; 13 units permitted in Blount County in 2024 (0 in 5+ unit buildings).
• Blount County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $8k; list at $95k implies a 1018% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; major 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 D-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.