237 Lexington St · Birmingham, AL 35224

$29,999

3 bd · 1.0 ba · 1,548 sqft · SingleFamily public records · 189 Days on market

Built 1962 9,583 sqft lot $19/sqft · 50% below area Est $60k · 50% under ↓ 56% 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 +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +0.9/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Investment property with 2 bedrooms, 2 baths and full basement. Do not enter the house without signing a release. Sold as-is.

Key facts

• 9,583 sq ft lot
• Built 1962
• Listed 189 days

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $30k.

Deal economics

• At list price, monthly cash flow is $683 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $30k).
• Recommended offer: $26k (12.0% below list) — sets the bar for market timing.
• Cap rate 33.6% vs local median 6.2% in Birmingham — 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 67/100 on livability (#78 in AL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities C-, schools F, crime F.
• Birmingham City (urban): math 4% / reading 20% proficiency, ranked #116 of 129 in AL (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 42 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 59% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $207 of loan paydown is wiped out by about $900 of value loss. Plan a longer hold.
• Jefferson County population projected to shrink 4% 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 $8k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 189 days — a 12% lower offer ($26k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $26,399 (12.0% below list)

Questions for the listing agent

1. It's been on market 189 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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?
7. 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.
8. 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.
9. 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: 3.86% ✓
• Cap rate: 33.62%
• Cash-on-cash: 97.58%
• DSCR: 5.34
• GRM: 2.2

CMA / ARV

• ARV (median comp): $59,987
• List price: $29,999
• Delta: -49.99%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 9 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
325 Memphis St	0.11mi	3/1.0	1,594 (+3%)	21mo	$80,000	$50	72
405 Nevada St	0.18mi	4/1.5 (+1)	1,500 (-3%)	10mo	$55,000	$37	71
401 Lexington St	0.09mi	3/1.0	1,410 (-9%)	12mo	$60,000	$43	71
304 Lexington St	0.04mi	3/1.0	1,334 (-14%)	20mo	$42,000	$31	58
4317 5th Ct	0.38mi	4/2.0 (+1)	1,563 (+1%)	24mo	$70,000	$45	52
5223 Loop Rd	0.45mi	3/1.0	1,392 (-10%)	15mo	$76,500	$55	50
4300 6th Ave	0.42mi	3/1.0	1,380 (-11%)	16mo	$36,000	$26	49
4305 6th Ave	0.43mi	3/1.5	1,411 (-9%)	22mo	$75,000	$53	45
4201 10th Ave	0.70mi	3/1.0	1,344 (-13%)	1mo	$70,000	$52	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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 98.6%
• Equity multiple: 5.60×
• Total profit: $38,675
• Equity at exit: $4,473

10-year hold

• IRR: —
• Equity multiple: 11.69×
• Total profit: $89,827
• Equity at exit: $2,594

Cash invested: $8,400 (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 35224

• Home prices YoY: -16.2%
• Active inventory: 42
• Price-to-rent: 2.2×

Monthly cashflow live

• Estimated rent: $1,158 high
• Mortgage (P&I): −$157
• Tax from tax record: −$62 /mo · $740/yr
• Insurance: −$12
• HOA: −$0
• Vacancy / Maint / Mgmt: −$243
• Net cashflow: $683

Break-even live

Break-even rent $293

Max offer price $29,999

Occupancy floor 36%

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: $7,500
• Closing costs: $900
• Reserves months: —
• Total cash needed: —

Rent comps 17 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
304 Nevada St Birmingham, AL	3.0	1.0	1160	$1,200	$1.03	43d	1	0.18mi
4623 6th Ave Birmingham, AL	3.0	1.0	1421	$1,175	$0.83	11d	1	0.29mi
761 Crowne Rd Birmingham, AL	3.0	2.0	1068	$1,200	$1.12	2d	1	0.35mi
528 Oregon St Birmingham, AL	3.0	1.0	1165	$1,200	$1.03	43d	1	0.37mi
5223 Loop Rd Birmingham, AL	3.0	1.0	1392	$1,100	$0.79	43d	1	0.45mi
1226 Frisco St Birmingham, AL	4.0	2.0	1232	$1,245	$1.01	11d	1	0.85mi
1232 Frisco St Birmingham, AL	4.0	2.0	1332	$1,295	$0.97	2d	1	0.87mi
1300 Gulfport St Birmingham, AL	3.0	2.0	1778	$1,200	$0.67	43d	1	0.87mi
1312 Gulfport St Birmingham, AL	3.0	1.5	1376	$1,100	$0.80	43d	1	0.90mi
5320 Java Ave Birmingham, AL	3.0	1.0	1950	$1,100	$0.56	43d	1	0.92mi
4800 Norway Ave Birmingham, AL	3.0	1.0	1080	$1,200	$1.11	2d	1	1.13mi
504 Templeton Rd Birmingham, AL	3.0	2.0	1508	$950	$0.63	3d	1	1.20mi
3201 Avenue E Birmingham, AL	3.0	1.0	1056	$925	$0.88	43d	1	1.34mi
5804 Norway Ave Birmingham, AL	2.0	2.0	1564	$1,200	$0.77	23d	1	1.37mi
2711 Avenue E Birmingham, AL	2.0	1.0	1560	$800	$0.51	43d	1	1.41mi
3517 Avenue F Birmingham, AL	3.0	2.0	1155	$1,200	$1.04	43d	1	1.42mi
518 41st St Fairfield, AL	3.0	2.0	1095	$1,200	$1.10	43d	1	1.46mi

Listing history 15 events

1. 2026-06-18
   days on market $29,999 Active 189 DOM
2. 2026-06-17
   days on market $29,999 Active 188 DOM
3. 2026-06-16
   days on market $29,999 Active 187 DOM
4. 2026-06-15
   days on market $29,999 Active 186 DOM
5. 2026-06-13
   days on market $29,999 Active 184 DOM
6. 2026-06-10
   days on market $29,999 Active 181 DOM
7. 2026-06-09
   days on market $29,999 Active 180 DOM
8. 2026-06-08
   days on market $29,999 Active 179 DOM
9. 2026-06-07
   days on market $29,999 Active 178 DOM
10. 2026-06-03
    days on market $29,999 Active 174 DOM
11. 2026-06-02
    days on market $29,999 Active 173 DOM
12. 2026-06-01
    days on market $29,999 Active 172 DOM
13. 2026-05-31
    days on market $29,999 Active 171 DOM
14. 2025-12-10
    listed $29,999 Active 125-char remark

    Show marketing remark (125 chars)

    Investment property with 2 bedrooms, 2 baths and full basement. Do not enter the house without signing a release. Sold as-is.

15. 2005-10-10
    soldstatus $67,850

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

Tax reassessment forecast AL · Resets to sale price

• Current annual tax: $740 · $62/mo
• Projected year-2 tax: $740 · $62/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥107°F today · 18 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,892
• − Mortgage interest: −$1,680
• − Property taxes: −$740
• − Insurance: −$150
• − Repairs & maintenance: −$1,111
• − Management: −$1,111
• − Depreciation: −$873
• Taxable income: $8,226
• Est. tax owed @ 24.0%: −$1,974
• After-tax cash flow: $6,222/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: Birmingham City
• NCES district ID: 0100390
• Math proficiency: 4% ▼ -17.00%
• Reading proficiency: 20% ▼ -4.00%
• Median HH income: $31,988
• Composite: 9.49/100
• National rank: #9850
• State rank: #116 of 129 in AL

Livability — Birmingham

• Score: 67/100
• State rank: #78
• US rank: #10412

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Birmingham, AL
• City population: 210,422
• Population (ZIP): 5,409

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 669,185 people
• By 2030: 669,694 · +0.1%
• By 2040: 661,388 · -1.2%
• By 2050: 643,086 · -3.9%
• By 2075: 577,267 · -13.7%
• By 2100: 474,758 · -29.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (69%)
• Race & ethnicity: Black 69% White 22% Two or more races 5% Hispanic / Latino 3% Native American 1%
• Common ancestry: Slovak 0%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 3%

Political lean MEDSL · Jefferson

• 2024 margin: D (+10.4) · D 54.6% · R 44.2% · Other 1.2%
• 2008→2024 swing: +5.4pp toward D · 2008: 5.1pp · 2024: 10.4pp
• All cycles: 2024: D+10.4 2020: D+13.2 2016: D+7.2 2012: D+6.0 2008: D+5.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -24.47%
• Current HPI: 126.3423
• 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

-55.8% since first listed

2 events — show timeline

• 2025-12-10 Listed $29,999 Greater Alabama MLS
• 2005-10-10 Sold (Public Records) $67,850 Public Records

Property tax history

+5.2%/yr

Latest (2025): $740 · -54.4% YoY. Source: county tax records.