188 Waters Edge Ln · Madison, AL 35758

$140,000

2 bd · 2.0 ba · 634 sqft · Condo public records · 16 Days on market

Built 1988 $221/sqft · at area comps Est $164k · 15% under $197/mo HOA · 16% of rent

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Why this score? — see what drove the C 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).

• ARV discount +14.2/15.0
• Cash flow +10.5/30.0
• Appreciation +10.0/10.0
• Schools +5.6/10.0
• 1% rule +3.8/10.0
• Livability +3.8/5.0
• DSCR +3.0/10.0
• Rent growth +2.9/5.0
• Condition / age +2.5/5.0

Listing remarks

Upstairs condo in the heart of Madison! This 2 bed, 1 bath unit features updated flooring, fresh neutral paint, and abundant natural light throughout. The living room showcases vaulted ceilings and a sleek electric fireplace, creating a warm and open gathering space. The kitchen offers modern cabinetry, stainless appliances, ample counter space, and a breakfast bar open to the main living area. Enjoy a charming outdoor sitting area at the private entrance, plus a spacious primary bedroom and renovated bath with a beautifully tiled walk-in shower. Convenient location with easy access to I-565, Research Park, Redstone Arsenal, shopping, and dining!

Key facts

• Modern cabinetry
• Stainless appliances
• Updated flooring

Tags

• UPDATED FLOORING
• ABUNDANT NATURAL LIGHT
• VAULTED CEILINGS
• ELECTRIC FIREPLACE
• MODERN CABINETRY
• STAINLESS APPLIANCES

Property features AI

Finance

• Other: Unit is part of a condominium community; Living area reported as 732 square feet
• HOA & community: HOA with monthly fee (approx. $197); Subdivision: Madison Towne Centre

Exterior

• Parking: Paved asphalt driveway; Parking lot
• Utilities: Public water; Public sewer; Electric power (implied by electric fireplace)
• Home design: Residential condominium; Built in 1988
• Construction: Slab foundation
• Exterior features: Park nearby

Interior

• Bedrooms: Number of full bathrooms: 1
• Bathrooms: 1 full bathroom
• Heating & cooling: Central heating; Central cooling
• Interior features: Five total rooms; One fireplace (electric)

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath condo listed at $140k.

Deal economics

• At list price, monthly cash flow is $-71 ($-847/yr) — negative.
• To cash-flow at today's rent, offer at most $128k (8.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $123k (12.4% below list).
• Recommended offer: $123k (12.4% below list) — sets the bar for 1% rule.
• Cap rate 5.7% vs local median 2.6% in Madison — 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 76/100 on livability (#12 in AL, #3,280 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B+; Watch: amenities F, commute F.
• Madison City (suburban): math 51% / reading 71% proficiency, ranked #4 of 129 in AL (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Midtown Elementary School (math 49% / reading 78%, grade B, #46 of 627 statewide, top 8%, 999 students, 26% FRL); Discovery Middle School (math 46% / reading 69%, grade B, #13 of 257 statewide, top 5%, 1,334 students, 25% FRL); Bob Jones High School (math 53% / reading 51%, grade D+, #11 of 305 statewide, top 4%, 1,920 students, 24% FRL).
• Market conditions: Rents rising (+1.6%/yr); 382 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 4,709 units permitted in Madison County in 2024 (1,186 in 5+ unit buildings).
• This rent is only 13% of the median local income ($117k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• In year one you build about $15k of equity ($968 loan paydown + $14k appreciation (10.0% local appreciation)).
• Madison County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (10.0% appreciation + 1.6% rent growth), your $39k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 16 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $122,595 (12.4% below list)

Questions for the listing agent

1. 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?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.88% ✗
• Cap rate: 5.69%
• Cash-on-cash: -2.16%
• DSCR: 0.90
• GRM: 9.5

CMA / ARV

• ARV (median comp): $164,419
• List price: $140,000
• Delta: -14.85%
• Verdict: UNDERPRICED
• Comps: 19 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 1.58% rent growth · sell at horizon

5-year hold

• IRR: 22.3%
• Equity multiple: 2.79×
• Total profit: $70,087
• Equity at exit: $126,123

10-year hold

• IRR: 19.7%
• Equity multiple: 6.27×
• Total profit: $206,749
• Equity at exit: $271,989

Cash invested: $39,200 (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 35758

• Home prices YoY: 4.2%
• Rents YoY: 1.6%
• Active inventory: 382
• Price-to-rent: 9.5×

Monthly cashflow live

• Estimated rent: $1,226 medium
• Mortgage (P&I): −$734
• Tax from tax record: −$50 /mo · $595/yr
• Insurance: −$58
• HOA: −$197
• Vacancy / Maint / Mgmt: −$257
• Net cashflow: $-71

Break-even live

Break-even rent $1,315

Max offer price $127,530

Occupancy floor —

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: $35,000
• Closing costs: $4,200
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
7584 Madison Pike Madison, AL	1.0–3.0	1.0–2.0	1023	$1,118	$1.09	14d	17	1.30mi
194 Shelton Rd Madison, AL	2.0	1.0–2.0	729	$1,149	$1.58	14d	9	1.45mi

HOA detail condo

• Monthly dues: $197 · $2,364/yr
• Likely covers: electric
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 2 events

1. 2026-05-30
   days on market $140,000 Active 16 DOM
2. 2026-05-14
   listed $140,000 Active 654-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: $595 · $50/mo
• Projected year-2 tax: $595 · $50/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 2/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 27% chance of damaging wind over 30 yrs

Taxation est. · year 1

• Rental income: $14,711
• − Mortgage interest: −$7,842
• − Property taxes: −$595
• − Insurance: −$700
• − Repairs & maintenance: −$1,177
• − Management: −$1,177
• − HOA: −$2,364
• − Depreciation: −$4,073
• Taxable loss: −$3,216
• Est. tax savings @ 24.0%: +$772
• After-tax cash flow: $-75/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: Madison City
• NCES district ID: 0100008
• Math proficiency: 51% ▼ -25.00%
• Reading proficiency: 71% ▼ -2.00%
• Median HH income: $89,091
• Composite: 55.56/100
• National rank: #1238
• State rank: #4 of 129 in AL

Livability — Madison

• Score: 76/100
• State rank: #12
• US rank: #3280

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Madison, AL
• County: Madison County · 380,832 people
• City population: 93,742
• Metro: Huntsville, AL
• Population (ZIP): 50,266
• Household income: $117,380
• Rent vs Own: 30.8% rent · 69.2% own
• Severe rent burden: 875.0

Population outlook (Madison County) Hauer SSP2

• Today (2025): 392,086 people
• By 2030: 409,788 · +4.5%
• By 2040: 440,557 · +12.4%
• By 2050: 460,990 · +17.6%
• By 2075: 502,872 · +28.3%
• By 2100: 513,623 · +31.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (68%)
• Race & ethnicity: White 68% Black 14% Hispanic / Latino 8% Asian 7% Two or more races 7%
• Hispanic origin (detail): Mexican 3% Puerto Rican 2%
• Common ancestry: Slovak 3% Italian 2% Lithuanian 2%
• Foreign-born: 9% · Canada, South Korea, Vietnam
• Languages at home: 87% English-only · Spanish 5% Other Asian/Pacific 2% Chinese 1%

Political lean MEDSL · Madison

• 2024 margin: Lean R (+9.0) · D 44.7% · R 53.7% · Other 1.6%
• 2008→2024 swing: +6.0pp toward D · 2008: -14.9pp · 2024: -9.0pp
• All cycles: 2024: R+9.0 2020: R+8.0 2016: R+16.8 2012: R+18.7 2008: R+14.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 14.46%
• Current HPI: 355.2784
• Rent YoY: ▲ 1.58%
• Metro: Huntsville, 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

Property tax history

-2.8%/yr

Latest (2016): $595 · -5.6% YoY. Source: county tax records.