3957 Beulah Rd

Boaz, AL 35957

$225,000D

4 bd · 2.0 ba · 1,330 sqft · Built 2008 · SingleFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,571/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$155
• HOA: −$0
• Vac / Maint / Mgmt: −$330
• Net cashflow: $-94/mo
• Annual: $-1,122/yr
• Cap rate: 5.79%
• Cash-on-cash: -1.78%
• DSCR: 0.92
• 1% rule: 0.70%
• Cash to close: $63,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $225k.
• At list price, monthly cash flow is $-94 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $208k (7.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $157k (30.2% below list).
• It's been on market 60 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $157k (30.2% 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 $7k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#233 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: crime C-, employment D+, amenities F.
• Marshall County (rural): math 14% / reading 38% proficiency, ranked #86 of 129 in AL (top 67%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Asbury Elementary School (math 12% / reading 33%, grade F, #435 of 627 statewide, top 69%, 701 students, 84% FRL); Douglas Middle School (math 9% / reading 39%, grade F, #168 of 257 statewide, top 66%, 496 students, 53% FRL); Asbury High School (math 5% / reading 31%, grade F, #187 of 305 statewide, top 62%, 664 students, 84% FRL).
• Market conditions: 88 active listings in the ZIP; 163 units permitted in Marshall County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 5y 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.
• Current owner paid $178k; 26% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 4.4% in Boaz — 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.

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 60 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.