The 1400 Plan Plan

Huntsville, AL 35749

$229,900F

3 bd · 2.0 ba · 1,402 sqft · Built — · SingleFamily · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,822/mo
• Mortgage (P&I): −$1,490
• Tax + insurance: −$474
• HOA: −$0
• Vac / Maint / Mgmt: −$383
• Net cashflow: $-524/mo
• Annual: $-6,292/yr
• Cap rate: 4.08%
• Cash-on-cash: -7.91%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $79,569

Investor read

• This is a 3-bed/2.0-bath single-family listed at $230k.
• At list price, monthly cash flow is $-524 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $208k (9.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $182k (20.7% below list).
• It's been on market 89 days — a 6% lower offer ($216k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (20.7% 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 $9k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#3 in AL, #1,082 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F.
• Limestone County (rural): math 21% / reading 44% proficiency, ranked #52 of 129 in AL (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Creekside Elementary School (math 42% / reading 66%, grade C, #96 of 627 statewide, top 16%, 560 students, 41% FRL) — zoned schools at 41% FRL track the district average.
• Zoned-school proficiency averages 54% at this address vs 32% district-wide (+22 pts) — the actual schools serving this property are materially stronger than the Limestone County average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents flat; 675 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 494 units permitted in Limestone County in 2024 (0 in 5+ unit buildings).
• Limestone County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wind risk, 23% 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.

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 89 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• 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.
• 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?
• 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.
• 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.