422 4th Ter N · Birmingham, AL 35204

$35,000

3 bd · 1.0 ba · 1,176 sqft · SingleFamily public records · 32 Days on market

Built 1924 9,147 sqft lot Est $68k · 49% under

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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
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +5.3/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +0.9/10.0

Listing remarks

Description: Strong value-add opportunity in Birmingham, perfect for those looking for a renovation project with upside potential. This property needs work and is ideal for a fix-and-flip or buy-and-hold investor ready to bring it back to life.

Key facts

• 9,147 sq ft lot
• Built 1924
• Listed 32 days

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $35k.

Deal economics

• At list price, monthly cash flow is $675 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $35k).
• Recommended offer: $34k (3.0% below list) — sets the bar for market timing.
• Cap rate 29.4% vs local median 6.2% in Birmingham — 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 67/100 on livability (#78 in AL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities C-, crime F, employment F.
• Birmingham City (urban): math 4% / reading 20% proficiency, ranked #116 of 129 in AL (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Tuggle Elementary School (math 2% / reading 17%, grade F, #591 of 627 statewide, top 94%, 470 students, 87% FRL); Parker High School (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 826 students, 90% FRL).
• Market conditions: 64 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).
• This rent runs 40% of the median local income ($35k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• In year one you build about $466 of equity ($242 loan paydown + $224 appreciation (0.6% local appreciation)).
• Jefferson County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (0.6% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 32 days — a 3% lower offer ($34k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $33,950 (3.0% below list)

Questions for the listing agent

1. It's been on market 32 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
5. 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?
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 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: 3.36% ✓
• Cap rate: 29.42%
• Cash-on-cash: 82.60%
• DSCR: 4.68
• GRM: 2.5

CMA / ARV

• ARV (on-the-fly): $68,208
• Comps found: 6

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
310 S Center St	0.48mi	3/1.0	1,107 (-6%)	20mo	$97,000	$88	51
446 1st St N	0.35mi	2/1.0 (-1)	1,034 (-12%)	13mo	$75,000	$73	48
345 Iota Ave S	0.74mi	2/1.0 (-1)	1,279 (+9%)	4mo	$20,000	$16	43
112 Kappa Ave S	0.73mi	3/1.0	1,034 (-12%)	7mo	$25,000	$24	40
612 2nd St SW	0.72mi	3/1.0	1,320 (+12%)	12mo	$76,000	$58	36
349 Theta Ave S	0.68mi	3/1.0	1,298 (+10%)	19mo	$35,000	$27	35

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

0.64% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 85.4%
• Equity multiple: 5.39×
• Total profit: $43,034
• Equity at exit: $11,299

10-year hold

• IRR: 86.4%
• Equity multiple: 11.07×
• Total profit: $98,731
• Equity at exit: $14,526

Cash invested: $9,800 (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 35204

• Home prices YoY: 0.3%
• Active inventory: 64
• Price-to-rent: 2.5×

Monthly cashflow live

• Estimated rent: $1,175 high
• Mortgage (P&I): −$184
• Tax from tax record: −$56 /mo · $670/yr
• Insurance: −$15
• HOA: −$0
• Vacancy / Maint / Mgmt: −$247
• Net cashflow: $675

Break-even live

Break-even rent $321

Max offer price $35,000

Occupancy floor 38%

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: $8,750
• Closing costs: $1,050
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
451 2nd St N Birmingham, AL	4.0	3.0	1400	$1,600	$1.14	43d	1	0.22mi
451 2nd Ave N Birmingham, AL	4.0	3.0	1400	$1,600	$1.14	23d	1	0.33mi
112 Kappa Ave S Birmingham, AL	3.0	2.0	1034	$1,100	$1.06	43d	1	0.72mi
310 Gamma St S Birmingham, AL	3.0	1.5	1001	$1,200	$1.20	16d	1	0.84mi
963 3rd St W Birmingham, AL	3.0	2.0	1444	$1,295	$0.90	23d	1	0.86mi
413 Fulton Ave SW Birmingham, AL	3.0	1.0	940	$525	$0.56	3d	1	0.87mi
506 Alpha St S Birmingham, AL	3.0	1.0	944	$1,373	$1.45	43d	1	0.89mi
313 Beta St S Unit 317A Birmingham, AL	2.0	1.0	850	$799	$0.94	2d	1	0.90mi
410 8th Ter W Birmingham, AL	3.0	1.0	1440	$1,200	$0.83	16d	1	0.91mi
1153 2nd St N Birmingham, AL	3.0	1.0	1056	$1,150	$1.09	19d	1	0.94mi
1113 15th St N Birmingham, AL	2.0	1.0	700	$880	$1.26	43d	2	1.04mi
624 4th Ct W Birmingham, AL	3.0	1.5	992	$1,250	$1.26	43d	1	1.04mi
617 7th St W Birmingham, AL	3.0	1.5	1120	$1,175	$1.05	43d	1	1.05mi
608 Fulton Ave SW Birmingham, AL	3.0	1.0	1271	$1,300	$1.02	43d	1	1.06mi
915 6th St W Birmingham, AL	3.0	1.0	1332	$1,075	$0.81	43d	1	1.08mi
12 4th Ave SW Unit 1 Birmingham, AL	3.0	1.0	1336	$1,100	$0.82	43d	1	1.09mi
905 7th St W Birmingham, AL	3.0	2.0	1029	$1,150	$1.12	43d	1	1.13mi
724 4th Ct W Birmingham, AL	3.0	1.0	1300	$930	$0.72	43d	1	1.14mi
644 Alabama Ave SW Birmingham, AL	3.0	1.0	1274	$1,125	$0.88	23d	1	1.16mi
1317 11th St N Birmingham, AL	3.0	1.0	1340	$1,200	$0.90	43d	1	1.16mi
600 19th St N Apt 202 Birmingham, AL	3.0	2.0	1248	$3,050	$2.44	11d	1	1.17mi
600 19th St N Unit 604 Birmingham, AL	2.0	2.0	1001	$2,895	$2.89	11d	1	1.17mi
600 19th St N Unit 601 Birmingham, AL	2.0	2.0	1001	$2,544	$2.54	11d	1	1.17mi
600 19th St N Birmingham, AL	1.0–3.0	1.0–3.0	1398	$4,560	$3.26	19d	83	1.18mi
600 19th St N Birmingham, AL	1.0–3.0	1.0–2.0	1120	$3,550	$3.17	16d	30	1.18mi
1508 4th Ave S Birmingham, AL	2.0	2.0	1142	$2,222	$1.95	3d	3	1.20mi
1305 16th St N Unit 1305 D Birmingham, AL	2.0	1.0	825	$595	$0.72	23d	1	1.21mi
827 6th Ave W Birmingham, AL	3.0	1.0	1214	$1,075	$0.89	23d	1	1.23mi
719 Washington Ave SW Birmingham, AL	3.0	1.0	1064	$950	$0.89	11d	1	1.23mi
120 19th St N Birmingham, AL	1.0–2.0	1.0–2.0	886	$2,190	$2.47	2d	14	1.24mi
517 11th Ct W Birmingham, AL	2.0	1.0	970	$795	$0.82	43d	1	1.24mi
806 Gamma St S Birmingham, AL	3.0	1.0	1252	$1,200	$0.96	43d	1	1.25mi
1701 1st Ave S Birmingham, AL	1.0–2.0	1.0–2.0	889	$2,506	$2.82	2d	21	1.25mi
120 19th St N Unit 312 Birmingham, AL	2.0	2.0	952	$3,495	$3.67	43d	1	1.26mi
261 3rd Ave SW Birmingham, AL	1.0–2.0	1.0	634	$850	$1.34	3d	14	1.28mi
908 4th Ave W Birmingham, AL	2.0	1.0	700	$745	$1.06	23d	1	1.33mi
757 10th Ave W Birmingham, AL	2.0	1.0	1136	$1,000	$0.88	43d	1	1.33mi
1500 12th St N Birmingham, AL	2.0	1.0	750	$800	$1.07	23d	1	1.34mi
1000 4th Ave W Unit 4 Birmingham, AL	2.0	1.0	840	$823	$0.98	23d	1	1.39mi
1802 14th Ct N Birmingham, AL	2.0	1.0	700	$850	$1.21	19d	1	1.43mi

Listing history 2 events

1. 2026-01-23
   status Pending
2. 2025-12-19
   listed $35,000 Active

ⓘ 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: $670 · $56/mo
• Projected year-2 tax: $670 · $56/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 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 6 unhealthy d/yr today · 8 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,104
• − Mortgage interest: −$1,961
• − Property taxes: −$670
• − Insurance: −$175
• − Repairs & maintenance: −$1,128
• − Management: −$1,128
• − Depreciation: −$1,018
• Taxable income: $8,024
• Est. tax owed @ 24.0%: −$1,926
• After-tax cash flow: $6,169/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: Birmingham City
• NCES district ID: 0100390
• Math proficiency: 4% ▼ -17.00%
• Reading proficiency: 20% ▼ -4.00%
• Median HH income: $31,988
• Composite: 9.49/100
• National rank: #9850
• State rank: #116 of 129 in AL

Livability — Birmingham

• Score: 67/100
• State rank: #78
• US rank: #10412

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Birmingham, AL
• County: Jefferson County · 527,445 people
• City population: 210,422
• Metro: Birmingham-Hoover, AL
• Population (ZIP): 8,953
• Household income: $35,420
• Rent vs Own: 53.8% rent · 46.2% own
• Severe rent burden: 422.0

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 669,185 people
• By 2030: 669,694 · +0.1%
• By 2040: 661,388 · -1.2%
• By 2050: 643,086 · -3.9%
• By 2075: 577,267 · -13.7%
• By 2100: 474,758 · -29.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (86%)
• Race & ethnicity: Black 86% White 7% Hispanic / Latino 5% Two or more races 2%
• Foreign-born: 3% · Canada
• Languages at home: 94% English-only · Spanish 5%

Political lean MEDSL · Jefferson

• 2024 margin: D (+10.4) · D 54.6% · R 44.2% · Other 1.2%
• 2008→2024 swing: +5.4pp toward D · 2008: 5.1pp · 2024: 10.4pp
• All cycles: 2024: D+10.4 2020: D+13.2 2016: D+7.2 2012: D+6.0 2008: D+5.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.64%
• Current HPI: 201.0777
• Rent YoY: —
• Metro: Birmingham-Hoover, 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

2 events — show timeline

• 2026-01-23 Pending — Greater Alabama MLS
• 2025-12-19 Listed $35,000 Greater Alabama MLS

Property tax history

+8.7%/yr

Latest (2025): $670 · -20.2% YoY. Source: county tax records.