235 Chad Ave · Lexington, AL 35648

$89,900

3 bd · 2.0 ba · 1,363 sqft · SingleFamily public records · 6 Days on market

Built 1968 1.05 ac lot Est $139k · 35% under ↓ 38% since listing

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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 +26.5/30.0
• ARV discount +15.0/15.0
• DSCR +9.0/10.0
• 1% rule +7.1/10.0
• Livability +3.6/5.0
• Schools +2.8/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Peaceful setting on 1 acre in Lexington, less than a half mile from Lexington school. Great sweat equity investment or starter home. 3 bedrooms/2 bathroom. Well laid out, large open LR from the kitchen and dining area. Covered back porch w/ large backyard. Back yard has dry creek that flows during rainy season. Arrange a viewing today to witness the possibilities that await! This home is priced to sell and ready for its new owners. Purchaser to verify all information. Home will not qualify for traditional financing.

Key facts

• Large open lr
• Large backyard
• Covered back porch

Tags

• LARGE OPEN LR
• COVERED BACK PORCH
• LARGE BACKYARD

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $90k.

Deal economics

• At list price, monthly cash flow is $237 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $90k).
• Cap rate 9.5% vs local median 3.2% in Lexington — 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 71/100 on livability (#34 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Lauderdale County (rural): math 19% / reading 46% proficiency, ranked #53 of 129 in AL (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lexington Elementary School (435 students, 44% FRL); Lexington High School (math 35% / reading 56%, grade D-, #20 of 305 statewide, top 6%, 350 students, 47% FRL).
• Zoned-school proficiency averages 46% at this address vs 32% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Lauderdale County average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 32 active listings in the ZIP; 164 units permitted in Lauderdale County in 2024 (72 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• 3 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Climate carrying-cost: major flood risk; 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.

Recommended offer $89,900

Questions for the listing agent

1. Built in 1968 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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: 1.21% ✓
• Cap rate: 9.46%
• Cash-on-cash: 11.32%
• DSCR: 1.50
• GRM: 6.9

CMA / ARV

• ARV (on-the-fly): $139,026
• Comps found: 5

Show comp detail 5 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
130 Taylor Kizer St	0.46mi	3/2.0	1,428 (+5%)	9mo	$131,000	$92	63
10942 County Hwy 71	0.43mi	2/1.0 (-1)	1,292 (-5%)	9mo	$215,000	$166	55
9767 Hwy 64	0.58mi	3/1.0	1,278 (-6%)	24mo	$130,000	$102	39
10162 Hwy 101	0.57mi	2/1.5 (-1)	1,288 (-6%)	24mo	$87,500	$68	38
120 Taylor Kizer St	0.48mi	2/1.0 (-1)	1,556 (+14%)	10mo	$195,000	$125	37

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

Projected returns pro-forma

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

5-year hold

• IRR: 0.6%
• Equity multiple: 1.02×
• Total profit: $568
• Equity at exit: $13,404

10-year hold

• IRR: 10.2%
• Equity multiple: 1.80×
• Total profit: $20,029
• Equity at exit: $7,773

Cash invested: $25,172 (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 35648

• Home prices YoY: -13.2%
• Active inventory: 32
• Price-to-rent: 6.9×

Monthly cashflow live

• Estimated rent: $1,087 medium
• Mortgage (P&I): −$471
• Tax est. 1.5%: −$112 /mo · $1,348/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$228
• Net cashflow: $237

Break-even live

Break-even rent $786

Max offer price $89,900

Occupancy floor 73%

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: $22,475
• Closing costs: $2,697
• Reserves months: —
• Total cash needed: —

Listing history 8 events

1. 2026-06-19
   days on market $89,900 Active 6 DOM
2. 2026-06-18
   status $89,900 Active 5 DOM
3. 2026-03-23
   status Pending
4. 2026-03-18
   listed $89,900 Active
5. 2024-02-07
   status Active
6. 2024-01-09
   historical
7. 2023-11-06
   price $125,000
8. 2023-10-06
   listed $145,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 69% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 5/10 Major 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 5/10 Major 23% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,043
• − Mortgage interest: −$5,036
• − Property taxes: −$1,348
• − Insurance: −$450
• − Repairs & maintenance: −$1,043
• − Management: −$1,043
• − Depreciation: −$2,615
• Taxable income: $1,507
• Est. tax owed @ 24.0%: −$362
• After-tax cash flow: $2,487/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: Lauderdale County
• NCES district ID: 0102010
• Math proficiency: 19% ▼ -35.00%
• Reading proficiency: 46% ▼ -7.00%
• Median HH income: $47,501
• Composite: 27.93/100
• National rank: #6863
• State rank: #53 of 129 in AL

Livability — Lexington

• Score: 71/100
• State rank: #34
• US rank: #6638

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lexington, AL
• City population: 3,622
• Population (ZIP): 3,622

Population outlook (Lauderdale County) Hauer SSP2

• Today (2025): 93,386 people
• By 2030: 93,634 · +0.3%
• By 2040: 93,114 · -0.3%
• By 2050: 91,586 · -1.9%
• By 2075: 88,667 · -5.1%
• By 2100: 81,098 · -13.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (96%)
• Race & ethnicity: White 96% Hispanic / Latino 2% Two or more races 1%
• Common ancestry: Slovak 5% Portuguese 4% Italian 1%
• Foreign-born: 0%

Political lean MEDSL · Lauderdale

• 2024 margin: Solid R (+51.5) · D 23.8% · R 75.3%
• 2008→2024 swing: -23.3pp toward R · 2008: -28.2pp · 2024: -51.5pp
• All cycles: 2024: R+51.5 2020: R+44.7 2016: R+46.0 2012: R+30.9 2008: R+28.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -29.00%
• Current HPI: 191.3447
• Rent YoY: —
• Metro: —
• 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

-38.0% since first listed

6 events — show timeline

• 2026-03-23 Pending — SAARMLS
• 2026-03-18 Listed $89,900 SAARMLS
• 2024-02-07 Relisted — VMLS
• 2024-01-09 Delisted — VMLS
• 2023-11-06 Price Changed $125,000 VMLS
• 2023-10-06 Listed $145,000 VMLS