ROANOKE Plan

Enterprise, AL 36330

$264,990F

4 bd · 2.0 ba · 1,773 sqft · Built — · SingleFamily · Active · 329 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,664/mo
• Mortgage (P&I): −$1,597
• Tax + insurance: −$574
• HOA: −$0
• Vac / Maint / Mgmt: −$349
• Net cashflow: $-856/mo
• Annual: $-10,268/yr
• Cap rate: 3.18%
• Cash-on-cash: -11.11%
• DSCR: 0.51
• 1% rule: 0.55%
• Cash to close: $85,242

Investor read

• This is a 4-bed/2.0-bath single-family listed at $265k. Condition is rated excellent.
• At list price, monthly cash flow is $-856 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $181k (31.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $166k (37.2% below list).
• It's been on market 329 days — a 12% lower offer ($233k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $166k (37.2% 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 65/100 on livability (#127 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D, crime F, amenities F.
• Enterprise City (town): math 40% / reading 60% proficiency, ranked #12 of 129 in AL (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: New Brockton Elementary School (math 27% / reading 51%, grade F, #257 of 627 statewide, top 41%, 708 students, 64% FRL); New Brockton High School (math 17% / reading 42%, grade F, #70 of 305 statewide, top 27%, 381 students, 58% FRL) — zoned schools average 61% FRL vs 38% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 34% at this address vs 50% district-wide (-16 pts) — the specific schools serving this property underperform the Enterprise City average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising (+3.9%/yr); 568 active listings in the ZIP; solid renter incomes; 137 units permitted in Coffee County in 2024 (0 in 5+ unit buildings).
• Climate carrying-cost: severe flood risk; 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.
• Cap rate 3.2% vs local median 4.2% in Enterprise — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 329 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.