Lilac Plan

Wetumpka, AL 36092

$230,300F

3 bd · 2.0 ba · 1,395 sqft · Built — · SingleFamily · Active · 333 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,864/mo
• Mortgage (P&I): −$1,399
• Tax + insurance: −$445
• HOA: −$17
• Vac / Maint / Mgmt: −$391
• Net cashflow: $-388/mo
• Annual: $-4,656/yr
• Cap rate: 4.55%
• Cash-on-cash: -6.23%
• DSCR: 0.72
• 1% rule: 0.70%
• Cash to close: $74,689

Investor read

• This is a 3-bed/2.0-bath single-family listed at $230k. Condition is rated good.
• At list price, monthly cash flow is $-388 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $211k (8.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $186k (19.1% below list).
• It's been on market 333 days — a 12% lower offer ($203k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $186k (19.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#22 in AL, #4,825 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities D, employment D, commute F.
• Elmore County (town): math 27% / reading 54% proficiency, ranked #21 of 129 in AL (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wetumpka Elementary School (math 25% / reading 57%, grade F, #233 of 627 statewide, top 38%, 871 students, 69% FRL); Wetumpka Middle School (math 19% / reading 51%, grade F, #86 of 257 statewide, top 34%, 738 students, 73% FRL); Wetumpka High School (math 29% / reading 43%, grade F, #43 of 305 statewide, top 14%, 1,240 students, 49% FRL) — zoned schools average 64% FRL vs 44% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 144 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 92 units permitted in Elmore County in 2024 (0 in 5+ unit buildings).
• Elmore County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: major wind risk, 76% chance of damaging wind over 30y; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 333 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.