2002 Montgomery St SW · Decatur, AL 35601

$55,000

3 bd · 1.5 ba · 1,624 sqft · SingleFamily public records · 5 Days on market

Built 1974 0.28 ac lot $34/sqft · 74% below area

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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
• Rent growth +3.7/5.0
• Livability +3.6/5.0
• Schools +2.6/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

3 Bedroom Ranch - come create your own style! This home offers the perfect opportunity to update and customize -- all just minutes from shopping, restaurants and essential services.

Key facts

• 0.28 acre lot
• Built 1974
• Listed 5 days

Property features AI

Finance

• Other: Subdivision: Metes And Bounds
• HOA & community: No homeowners association

Exterior

• Parking: Concrete driveway
• Home design: Single-family residence; One story; Built in 1974
• Construction: Vinyl siding
• Exterior features: Public water

Interior

• Bathrooms: 1 full bathroom; 1 half bathroom
• Heating & cooling: Central heating; Central air conditioning
• Interior features: Crawl space basement

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath single-family listed at $55k.

Deal economics

• At list price, monthly cash flow is $767 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• Cap rate 23.0% vs local median 4.0% in Decatur — 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 72/100 on livability (#28 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D+, crime F, amenities F.
• Decatur City (urban): math 22% / reading 40% proficiency, ranked #66 of 129 in AL (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Woodmeade Elementary School (math 17% / reading 37%, grade F, #392 of 627 statewide, top 65%, 354 students, 76% FRL); Austin Middle School (math 18% / reading 39%, grade F, #138 of 257 statewide, top 54%, 714 students, 77% FRL); Austin High School (math 20% / reading 24%, grade F, #142 of 305 statewide, top 51%, 1,025 students, 66% FRL) — zoned schools average 73% FRL vs 57% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.7%/yr); 223 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 231 units permitted in Morgan County in 2024 (0 in 5+ unit buildings).
• This rent runs 33% of the median local income ($51k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Morgan County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 4.7% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Climate carrying-cost: moderate wind risk, 23% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $55,000

Questions for the listing agent

1. Built in 1974 — 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: 2.54% ✓
• Cap rate: 23.02%
• Cash-on-cash: 59.74%
• DSCR: 3.66
• GRM: 3.3

CMA / ARV

• ARV (median comp): $179,348
• List price: $55,000
• Delta: -69.33%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 9 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2002 Montgomery St SW	0.00mi	3/1.5	1,393 (-14%)	0mo	$65,000	$47	76
1019 Terrehaute Ave	0.54mi	3/2.0	1,484 (-9%)	1mo	$227,500	$153	57
711 Canterbury Ave SW	0.22mi	4/2.5 (+1)	1,744 (+7%)	17mo	$211,000	$121	54
1302 Fletcher Ave	0.74mi	3/2.0	1,709 (+5%)	2mo	$128,700	$75	52
1704 SW Douthit St SW	0.40mi	4/2.0 (+1)	1,480 (-9%)	9mo	$200,000	$135	52
1908 Rhodes St	0.62mi	3/2.0	1,800 (+11%)	3mo	$254,900	$142	49
1609 SW 8th St SW	0.72mi	3/2.0	1,800 (+11%)	8mo	$186,000	$103	39
1613 8th St	0.70mi	3/2.0	1,450 (-11%)	17mo	$199,000	$137	33
1503 Aragon Cir SW	0.65mi	3/2.0	1,407 (-13%)	19mo	$200,000	$142	30

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 · 4.67% rent growth · sell at horizon

5-year hold

• IRR: 60.2%
• Equity multiple: 3.75×
• Total profit: $42,291
• Equity at exit: $8,201

10-year hold

• IRR: 65.5%
• Equity multiple: 8.13×
• Total profit: $109,786
• Equity at exit: $4,755

Cash invested: $15,400 (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 35601

• Home prices YoY: -26.5%
• Rents YoY: 4.7%
• Active inventory: 223
• Price-to-rent: 3.3×

Monthly cashflow live

• Estimated rent: $1,395 high
• Mortgage (P&I): −$288
• Tax from tax record: −$24 /mo · $284/yr
• Insurance: −$23
• HOA: −$0
• Vacancy / Maint / Mgmt: −$293
• Net cashflow: $767

Break-even live

Break-even rent $424

Max offer price $55,000

Occupancy floor 40%

Sensitivity live

Price	-10% $798	-5% $782	+0% $767	+5% $751	+10% $736
Rent	-10% $656	-5% $712	+0% $767	+5% $822	+10% $877
Rate	-1.0pp $794	-0.5pp $781	base $767	+0.5pp $752	+1.0pp $738

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: $13,750
• Closing costs: $1,650
• Reserves months: —
• Total cash needed: —

Rent comps 9 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1504 Faye St SW Decatur, AL	3.0	2.0	1200	$1,450	$1.21	44d	1	0.65mi
1518 15th Ave SW Decatur, AL	3.0	2.0	1440	$1,600	$1.11	44d	1	1.18mi
609 7th Ave SW Decatur, AL	4.0	2.0	1380	$1,425	$1.03	44d	1	1.22mi
2402 Gaslight Pl SW Decatur, AL	2.0	1.5	1250	$1,025	$0.82	21d	1	1.22mi
2131 Westmead Dr SW Decatur, AL	2.0	1.5	1100	$1,100	$1.00	44d	1	1.29mi
2151 Westmead Dr SW Decatur, AL	2.0	2.5	1300	$1,445	$1.11	44d	1	1.34mi
2151 Westmead Dr SW Unit na Decatur, AL	2.0	1.5	1300	$1,445	$1.11	45d	1	1.34mi
1812 Kathy Lane Ct SW Decatur, AL	3.0	2.0	1366	$1,700	$1.24	24d	1	1.34mi
1417 Brookline Ave SW Decatur, AL	2.0	1.5	1250	$1,050	$0.84	24d	1	1.48mi

Listing history 2 events

1. 2026-05-08
   status Pending 182-char remark
2. 2026-05-03
   listed $55,000 Active 182-char remark

ⓘ 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: $284 · $24/mo
• Projected year-2 tax: $284 · $24/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 5/10 Major 7 d/yr ≥105°F today · 18 d/yr by 30 yrs out
• 💨 Wind 5/10 Major 23% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,734
• − Mortgage interest: −$3,081
• − Property taxes: −$284
• − Insurance: −$275
• − Repairs & maintenance: −$1,339
• − Management: −$1,339
• − Depreciation: −$1,600
• Taxable income: $8,817
• Est. tax owed @ 24.0%: −$2,116
• After-tax cash flow: $7,084/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: Decatur City
• NCES district ID: 0101170
• Math proficiency: 22% ▼ -27.00%
• Reading proficiency: 40% ▼ -1.00%
• Median HH income: $42,170
• Composite: 26.21/100
• National rank: #7261
• State rank: #66 of 129 in AL

Livability — Decatur

• Score: 72/100
• State rank: #28
• US rank: #5989

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment D+ Housing A+ Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Decatur, AL
• County: Morgan County · 67,628 people
• City population: 67,628
• Metro: Decatur, AL
• Population (ZIP): 35,449
• Household income: $51,429
• Rent vs Own: 42.2% rent · 57.8% own
• Severe rent burden: 1386.0

Population outlook (Morgan County) Hauer SSP2

• Today (2025): 118,775 people
• By 2030: 116,979 · -1.5%
• By 2040: 111,800 · -5.9%
• By 2050: 105,181 · -11.4%
• By 2075: 87,736 · -26.1%
• By 2100: 67,624 · -43.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.66)
• Race & ethnicity: White 47% Hispanic / Latino 24% Black 24% Two or more races 10% Native American 2%
• Hispanic origin (detail): Mexican 15% Puerto Rican 2%
• Common ancestry: Slovak 1% Italian 1% Lithuanian 1%
• Foreign-born: 10% · Canada
• Languages at home: 81% English-only · Spanish 18%

Political lean MEDSL · Morgan

• 2024 margin: Solid R (+52.6) · D 23.2% · R 75.8%
• 2008→2024 swing: -8.8pp toward R · 2008: -43.8pp · 2024: -52.6pp
• All cycles: 2024: R+52.6 2020: R+49.2 2016: R+52.4 2012: R+44.5 2008: R+43.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -89.26%
• Current HPI: 247.8437
• Rent YoY: ▲ 4.67%
• Metro: Decatur, AL
• 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

+18.2% since first listed

3 events — show timeline

• 2026-06-06 Sold (MLS) $65,000 VMLS
• 2026-05-08 Pending — VMLS
• 2026-05-03 Listed $55,000 VMLS

Property tax history

+8.4%/yr

Latest (2025): $284 · +28.1% YoY. Source: county tax records.