1284 Navaho St

Lockhart, AL N/A

$126,000C

4 bd · 3.0 ba · 1,639 sqft · Built 1997 · Manufactured · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,338/mo
• Mortgage (P&I): −$661
• Tax + insurance: −$210
• HOA: −$0
• Vac / Maint / Mgmt: −$281
• Net cashflow: $186/mo
• Annual: $2,235/yr
• Cap rate: 8.07%
• Cash-on-cash: 6.33%
• DSCR: 1.28
• 1% rule: 1.06%
• Cash to close: $35,280

Investor read

• This is a 4-bed/3.0-bath manufactured listed at $126k. Condition is rated fair.
• At list price, monthly cash flow is $186 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $126k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($871 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 63/100 on livability (#183 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Covington County (rural): math 27% / reading 50% proficiency, ranked #32 of 129 in AL (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ws Harlan Elementary School (math 32% / reading 52%, grade F, #213 of 627 statewide, top 37%, 331 students, 72% FRL); Straughn Middle School (math 35% / reading 62%, grade C-, #28 of 257 statewide, top 11%, 318 students, 65% FRL); Florala High School (math 17% / reading 37%, grade F, #90 of 305 statewide, top 35%, 218 students, 74% FRL) — zoned schools average 70% FRL vs 52% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 13 units permitted in Covington County in 2024 (0 in 5+ unit buildings).
• Covington County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 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.

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and in need of replacement
• Major: bathroom fixtures — dated and in need of replacement
• Moderate: kitchen countertops — dated and in need of replacement
• Major: bathroom flooring — dated and in need of replacement
• Major: interior walls — peeling paint and need for fresh paint