4560 Lee Road 27

Auburn, AL 36801

$810,000B-

None bd · None ba · 22,000 sqft · Built 2000 · MultiFamily · Active · 780 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $30,534/mo
• Mortgage (P&I): −$4,248
• Tax + insurance: −$1,350
• HOA: −$0
• Vac / Maint / Mgmt: −$6,412
• Net cashflow: $18,524/mo
• Annual: $222,290/yr
• Cap rate: 33.74%
• Cash-on-cash: 98.01%
• DSCR: 5.36
• 1% rule: 3.77%
• Cash to close: $226,800

Investor read

• This is a multifamily listed at $810k. Condition is rated poor.
• At list price, monthly cash flow is $19k ($222k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($31k rent vs $810k).
• It's been on market 780 days — a 12% lower offer ($713k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $713k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#6 in AL, #1,842 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, health & safety A+; Watch: commute 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.
• Market conditions: Rents rising fast (+6.2%/yr); 534 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 3y ago; this cycle's ask has dropped $91k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 6.2% rent growth), your $227k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 33.7% vs local median 2.7% in Auburn — 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.
• At $30,534/mo this rent would consume 587% of the median local household income ($62k/yr) (locally 1025% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 780 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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 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?
• 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 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen renovation — No photos of kitchen
• Major: Bathroom renovation — No photos of bathrooms
• Major: Roof replacement — No photos of roof
• Major: Exterior siding repair — No photos of exterior
• Major: Flooring replacement — No photos of flooring
• Major: Interior wall and paint repair — No photos of interior walls/paint