402 5th Avenue Sw SW · Decatur, AL 35601

$125,000

3 bd · 1.0 ba · 1,356 sqft · SingleFamily · 1 Days on market

Built 1944 0.30 ac lot Est $161k · 23% under

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Why this score? — see what drove the C+ 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 +21.6/30.0
• ARV discount +15.0/15.0
• DSCR +6.9/10.0
• 1% rule +5.7/10.0
• Rent growth +3.7/5.0
• Livability +3.6/5.0
• Schools +2.6/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Opportunity awaits. .. This home is ideal for investors, rehabbers, or buyers seeking a project with potential. This adorable bungalow greets you with a comfortable covered front porch, hard wood floors, a wood-burning fireplace, and a wonderfully spacious floor plan with large bedrooms and bath. The exterior features a large, fenced backyard. Sold "AS-IS, WHERE-IS. " Listing photos have been retouched and decluttered for marketing purposes.

Key facts

• Covered front porch
• Fenced backyard
• 0.3 acre lot

Tags

• COVERED FRONT PORCH
• WOOD BURNING FIREPLACE
• FENCED BACKYARD

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $125k.

Deal economics

• At list price, monthly cash flow is $189 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $125k).
• Cap rate 8.1% vs local median 4.0% in Decatur — 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 72/100 on livability (#28 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, employment D+, crime F.
• Decatur City (urban): math 22% / reading 40% proficiency, ranked #66 of 129 in AL (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+4.7%/yr); 223 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; 231 units permitted in Morgan County in 2024 (0 in 5+ unit buildings).
• This rent runs 31% of the median local income ($51k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Morgan County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1944 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $125,000

Questions for the listing agent

1. Built in 1944 — 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. 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?
4. 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.
5. 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.
6. 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: 1.07% ✓
• Cap rate: 8.11%
• Cash-on-cash: 6.48%
• DSCR: 1.29
• GRM: 7.8

CMA / ARV

• ARV (on-the-fly): $161,364
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
207 7th Ave SW	0.20mi	3/1.0	1,404 (+4%)	8mo	$120,200	$86	78
609 7th Ave SW	0.25mi	4/2.0 (+1)	1,380 (+2%)	1mo	$187,000	$136	76
107 8th Ave NW	0.32mi	3/2.0	1,344 (-1%)	8mo	$215,000	$160	74
310 6th Ave NW	0.42mi	3/1.5	1,377 (+2%)	7mo	$164,000	$119	70
609 7th Ave SW	0.25mi	3/1.5	1,250 (-8%)	5mo	$98,000	$78	69
201 10th Ave NW	0.47mi	3/1.5	1,320 (-3%)	12mo	$90,000	$68	62
414 5th Ave SW	0.06mi	4/1.0 (+1)	1,546 (+14%)	10mo	$65,000	$42	61
211 Prospect Dr SE	0.60mi	2/1.5 (-1)	1,330 (-2%)	3mo	$160,000	$120	59
216 Cain St	0.68mi	3/2.0	1,450 (+7%)	8mo	$239,000	$165	46
819 3rd Ave SE	0.71mi	3/2.0	1,232 (-9%)	3mo	$184,000	$149	45
207 Cain St NE	0.65mi	2/2.0 (-1)	1,234 (-9%)	1mo	$80,000	$65	45
606 14th Ave	0.65mi	3/2.0	1,500 (+11%)	5mo	$50,000	$33	44

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 · 4.67% rent growth · sell at horizon

5-year hold

• IRR: -4.4%
• Equity multiple: 0.83×
• Total profit: $-5,913
• Equity at exit: $18,638

10-year hold

• IRR: 7.1%
• Equity multiple: 1.57×
• Total profit: $20,110
• Equity at exit: $10,808

Cash invested: $35,000 (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 35601

• Home prices YoY: -26.5%
• Rents YoY: 4.7%
• Active inventory: 223
• Price-to-rent: 7.8×

Monthly cashflow live

• Estimated rent: $1,333 high
• Mortgage (P&I): −$656
• Tax est. 1.5%: −$156 /mo · $1,875/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$280
• Net cashflow: $189

Break-even live

Break-even rent $1,093

Max offer price $125,000

Occupancy floor 81%

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: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Rent comps 16 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
609 7th Ave SW Decatur, AL	4.0	2.0	1380	$1,425	$1.03	44d	1	0.23mi
225 5th Ave NW Decatur, AL	3.0	2.0	1496	$1,300	$0.87	44d	1	0.37mi
220 8th Ave NW Decatur, AL	3.0	1.0	973	$1,125	$1.16	44d	1	0.40mi
315 Hillside Rd SW Decatur, AL	3.0	1.5	1344	$1,400	$1.04	44d	1	0.78mi
516 Ferry St NE Decatur, AL	2.0	1.0	900	$1,150	$1.28	23d	1	0.81mi
14 Walnut St NE Decatur, AL	3.0	2.5	1430	$1,700	$1.19	44d	1	0.82mi
603 Prospect Dr SE Decatur, AL	3.0	1.0	1362	$1,795	$1.32	44d	1	0.86mi
818 Grant St SE Decatur, AL	2.0	1.0	910	$1,300	$1.43	44d	1	0.98mi
1504 Faye St SW Decatur, AL	3.0	2.0	1200	$1,450	$1.21	44d	1	1.02mi
213 Wilson St NE Unit 2 Decatur, AL	2.0	1.0	975	$875	$0.90	23d	1	1.02mi
213 Wilson St NE Unit 4 Decatur, AL	2.0	1.0	975	$700	$0.72	23d	1	1.02mi
1050 Harborview Dr NE Decatur, AL	1.0–2.0	1.0–2.0	790	$1,305	$1.65	14d	7	1.10mi
604 Alma St NW Decatur, AL	3.0	2.0	1350	$1,325	$0.98	21d	1	1.10mi
1018 Grant St SE Unit 1018-4 Decatur, AL	2.0	1.0	890	$775	$0.87	44d	1	1.12mi
1018 Grant St SE Unit 1026-4 Decatur, AL	2.0	1.0	890	$800	$0.90	44d	1	1.13mi
102 Elm Ct NE Decatur, AL	3.0	1.0	1216	$1,450	$1.19	23d	1	1.35mi

Listing history 2 events

1. 2026-06-19
   remarks 445-char remark
2. 2026-06-19
   listed $125,000 Active 1 DOM

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

Taxation est. · year 1

• Rental income: $15,994
• − Mortgage interest: −$7,002
• − Property taxes: −$1,875
• − Insurance: −$625
• − Repairs & maintenance: −$1,280
• − Management: −$1,280
• − Depreciation: −$3,636
• Taxable income: $297
• Est. tax owed @ 24.0%: −$71
• After-tax cash flow: $2,198/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: Decatur City
• NCES district ID: 0101170
• Math proficiency: 22% ▼ -27.00%
• Reading proficiency: 40% ▼ -1.00%
• Median HH income: $42,170
• Composite: 26.21/100
• National rank: #7261
• State rank: #66 of 129 in AL

Livability — Decatur

• Score: 72/100
• State rank: #28
• US rank: #5989

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Decatur, AL
• County: Morgan County · 67,628 people
• City population: 67,628
• Metro: Decatur, AL
• Population (ZIP): 35,449
• Household income: $51,429
• Rent vs Own: 42.2% rent · 57.8% own
• Severe rent burden: 1386.0

Population outlook (Morgan County) Hauer SSP2

• Today (2025): 118,775 people
• By 2030: 116,979 · -1.5%
• By 2040: 111,800 · -5.9%
• By 2050: 105,181 · -11.4%
• By 2075: 87,736 · -26.1%
• By 2100: 67,624 · -43.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.66)
• Race & ethnicity: White 47% Hispanic / Latino 24% Black 24% Two or more races 10% Native American 2%
• Hispanic origin (detail): Mexican 15% Puerto Rican 2%
• Common ancestry: Slovak 1% Italian 1% Lithuanian 1%
• Foreign-born: 10% · Canada
• Languages at home: 81% English-only · Spanish 18%

Political lean MEDSL · Morgan

• 2024 margin: Solid R (+52.6) · D 23.2% · R 75.8%
• 2008→2024 swing: -8.8pp toward R · 2008: -43.8pp · 2024: -52.6pp
• All cycles: 2024: R+52.6 2020: R+49.2 2016: R+52.4 2012: R+44.5 2008: R+43.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -89.26%
• Current HPI: 247.8437
• Rent YoY: ▲ 4.67%
• Metro: Decatur, 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