2138 E 2nd St · Montgomery, AL 36106

$54,900

3 bd · 2.0 ba · 1,856 sqft · SingleFamily public records · 13 Days on market

Built 1948 7,405 sqft lot

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Rent growth +4.1/5.0
• Livability +3.2/5.0
• Condition / age +2.5/5.0
• Schools +1.7/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to 2138 E 2nd St! This well-located property offers comfortable living space with easy access to downtown Montgomery, parks, and everyday amenities. A great opportunity for first-time buyers or for those looking to add an investment to their portfolio. ..

Key facts

• 7,405 sq ft lot
• Parking
• Built 1948

Property features AI

Exterior

• Parking: Driveway
• Utilities: Public water; Public sewer; Cable available; Natural gas available
• Home design: Single-story; Built as listed in public records; City lot (50 x 150)
• Construction: Asbestos and Masonite exterior materials
• Exterior features: Porch (covered); Exterior storage

Interior

• Flooring: Carpet; Vinyl
• Bathrooms: 1 full bathroom; 1 half bathroom
• Heating & cooling: Central heating (gas); Central electric air conditioning; Gas water heater
• Interior features: Carpet and vinyl flooring; Covered porch; Storage

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $55k.

Deal economics

• At list price, monthly cash flow is $872 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $55k).
• Cap rate 25.3% vs local median 6.0% in Montgomery — 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 65/100 on livability (#138 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools C-, employment D, crime F.
• Montgomery County (urban): math 9% / reading 31% proficiency, ranked #106 of 129 in AL (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+6.3%/yr); 137 active listings in the ZIP; 37 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 41% of comp listings sitting > 30 days — soft ceiling on asking rent; 460 units permitted in Montgomery County in 2024 (37 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Montgomery County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 6.3% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• 9 sale attempts since 23y 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 $30k; list at $55k implies a 80% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $54,900

Questions for the listing agent

1. Built in 1948 — 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: 2.79% ✓
• Cap rate: 25.35%
• Cash-on-cash: 68.04%
• DSCR: 4.03
• GRM: 3.0

CMA / ARV

• ARV (on-the-fly): $194,880
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2138 E 2nd St	0.00mi	3/1.5	1,856 (0%)	1mo	$30,500	$16	97
1324 Felder Ave	0.57mi	3/2.0	1,843 (-1%)	2mo	$140,000	$76	70
1738 W 3rd St	0.27mi	3/2.0	1,720 (-7%)	6mo	$37,500	$22	70
2017 Hazel Hedge Ln	0.45mi	3/2.0	1,951 (+5%)	2mo	$235,000	$120	69
2121 E 3rd St	0.05mi	3/1.0	1,600 (-14%)	4mo	$15,000	$9	67
1364 Felder Ave	0.51mi	3/2.0	1,722 (-7%)	6mo	$197,000	$114	59
446 Buford St	0.71mi	3/1.0	1,899 (+2%)	4mo	$108,000	$57	55
2009 Commodore St	0.52mi	3/2.0	1,661 (-10%)	4mo	$65,000	$39	55
2412 College St	0.72mi	3/2.0	1,776 (-4%)	7mo	$265,000	$149	54
1430 Midlane Ct	0.62mi	3/2.0	2,072 (+12%)	3mo	$217,500	$105	49
1214 Woodward Ave	0.70mi	3/2.0	1,631 (-12%)	6mo	$250,000	$153	42
1836 Longmeadow Dr	0.71mi	4/2.0 (+1)	1,680 (-10%)	7mo	$185,000	$110	40

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 · 6.29% rent growth · sell at horizon

5-year hold

• IRR: 71.0%
• Equity multiple: 4.37×
• Total profit: $51,846
• Equity at exit: $8,186

10-year hold

• IRR: 75.9%
• Equity multiple: 10.08×
• Total profit: $139,581
• Equity at exit: $4,747

Cash invested: $15,372 (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 36106

• Home prices YoY: -13.1%
• Rents YoY: 6.3%
• Active inventory: 137
• Price-to-rent: 3.0×

Monthly cashflow live

• Estimated rent: $1,529 high
• Mortgage (P&I): −$288
• Tax from tax record: −$26 /mo · $309/yr
• Insurance: −$23
• HOA: −$0
• Vacancy / Maint / Mgmt: −$321
• Net cashflow: $872

Break-even live

Break-even rent $426

Max offer price $54,900

Occupancy floor 38%

Sensitivity live

Price	-10% $903	-5% $887	+0% $872	+5% $856	+10% $841
Rent	-10% $751	-5% $811	+0% $872	+5% $932	+10% $992
Rate	-1.0pp $899	-0.5pp $886	base $872	+0.5pp $857	+1.0pp $843

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: $13,725
• Closing costs: $1,647
• Reserves months: —
• Total cash needed: —

Rent comps 37 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2043 Hazel Hedge Ln Montgomery, AL	4.0	3.0	2001	$1,650	$0.82	14d	1	0.42mi
2226 Carter Hill Rd Montgomery, AL	2.0	1.0	1506	$905	$0.60	44d	1	0.50mi
2045 Bullard St Unit 1043526P Montgomery, AL	3.0	2.0	1797	$2,198	$1.22	44d	1	0.51mi
2014 Commodore St Montgomery, AL	3.0	2.0	1613	$1,450	$0.90	14d	1	0.51mi
2053 Gorgas St Montgomery, AL	3.0	1.0	1955	$1,200	$0.61	21d	1	0.56mi
2009 Palmetto St Montgomery, AL	3.0	1.0	1487	$1,050	$0.71	44d	1	0.67mi
1355 Magnolia Curv Montgomery, AL	3.0	3.0	2260	$1,800	$0.80	14d	1	0.67mi
1425 Blairwood Montgomery, AL	3.0	2.0	1700	$1,850	$1.09	14d	1	0.69mi
1842 Gillespie Dr Montgomery, AL	4.0	2.0	1620	$1,650	$1.02	44d	1	0.78mi
1450 Crenshaw Pl S Montgomery, AL	3.0	2.0	1641	$1,775	$1.08	44d	1	0.78mi
1827 Pinecrest Dr Montgomery, AL	4.0	3.0	1893	$1,550	$0.82	14d	1	0.83mi
1839 Robison Hill Rd Montgomery, AL	4.0	2.0	1370	$1,550	$1.13	21d	1	0.88mi
3136 Harrison Rd Montgomery, AL	3.0	1.5	1355	$1,025	$0.76	44d	1	0.90mi
2727 Boultier St Montgomery, AL	1.0–3.0	1.0–2.0	1070	$1,582	$1.48	14d	3	0.95mi
2113 Brewton St Montgomery, AL	3.0	1.0	1363	$1,150	$0.84	44d	1	0.97mi
128 S Capitol Pkwy Montgomery, AL	3.0	1.0	1550	$1,500	$0.97	44d	1	0.98mi
2004 Capitol Ave Unit 1043879P Montgomery, AL	4.0	2.5	1797	$3,518	$1.96	14d	1	1.03mi
1814 Sylvan Dr Montgomery, AL	3.0	2.0	1785	$1,400	$0.78	21d	1	1.07mi
2988 Old Farm Rd Montgomery, AL	3.0	2.5	2314	$1,900	$0.82	44d	1	1.24mi
1008 Pelham St Montgomery, AL	4.0	2.0	1288	$1,300	$1.01	44d	1	1.24mi
2929 Canterbury Ct Unit 1043474P Montgomery, AL	4.0	2.5	2464	$2,667	$1.08	21d	1	1.26mi
2983 Old Farm Rd Montgomery, AL	3.0	2.0	2000	$1,725	$0.86	21d	1	1.26mi
519 Thorn Pl Montgomery, AL	2.0	1.0	1632	$650	$0.40	21d	1	1.26mi
3359 Bedford Ln Montgomery, AL	4.0	2.0	1786	$1,600	$0.90	14d	1	1.31mi
428 Thorn Pl Montgomery, AL	2.0	1.0	1549	$1,450	$0.94	44d	1	1.32mi
2243 Winona Ave Montgomery, AL	3.0	1.0	1492	$1,225	$0.82	21d	1	1.36mi
334 Felder Ave Montgomery, AL	3.0	2.0	2223	$2,395	$1.08	44d	1	1.37mi
15 Bradley Dr Montgomery, AL	3.0	2.0	1365	$1,500	$1.10	21d	1	1.37mi
18 Oak Forest Dr Montgomery, AL	3.0	2.0	1580	$1,050	$0.66	21d	1	1.39mi
1501 Winona Ave Montgomery, AL	2.0	1.0	1930	$1,000	$0.52	21d	1	1.40mi
7 Bradley Dr Montgomery, AL	3.0	2.0	1529	$1,500	$0.98	14d	1	1.40mi
926 Green Ridge Ct Montgomery, AL	3.0	2.0	1665	$1,381	$0.83	14d	1	1.42mi
1919 Norman Bridge Ct Unit 1043838P Montgomery, AL	4.0	3.0	1539	$4,108	$2.67	44d	1	1.42mi
3256 Montezuma Rd Montgomery, AL	3.0	2.0	1515	$1,450	$0.96	44d	1	1.44mi
3356 Audubon Rd Montgomery, AL	2.0	1.5	1340	$950	$0.71	44d	1	1.44mi
401 Ridgewood Ln Montgomery, AL	3.0	2.0	1513	$1,195	$0.79	21d	1	1.46mi
1216 Karen Rd Montgomery, AL	3.0	2.0	1620	$1,350	$0.83	14d	1	1.48mi

Listing history 11 events

1. 2026-06-18
   days on market $54,900 Active 13 DOM
2. 2026-06-17
   days on market $54,900 Active 12 DOM
3. 2026-06-16
   days on market $54,900 Active 11 DOM
4. 2026-06-15
   days on market $54,900 Active 10 DOM
5. 2026-06-14
   days on market $54,900 Active 8 DOM
6. 2026-06-13
   days on market $54,900 Active 7 DOM
7. 2026-06-10
   days on market $54,900 Active 5 DOM
8. 2026-06-09
   days on market $54,900 Active 4 DOM
9. 2026-06-08
   days on market $54,900 Active 3 DOM
10. 2026-06-07
    remarks 263-char remark
11. 2026-06-07
    listed $54,900 Active 2 DOM

ⓘ 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: $309 · $26/mo
• Projected year-2 tax: $309 · $26/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 1/10 Low
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 20 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,353
• − Mortgage interest: −$3,075
• − Property taxes: −$309
• − Insurance: −$274
• − Repairs & maintenance: −$1,468
• − Management: −$1,468
• − Depreciation: −$1,597
• Taxable income: $10,160
• Est. tax owed @ 24.0%: −$2,438
• After-tax cash flow: $8,021/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: Montgomery County
• NCES district ID: 0102430
• Math proficiency: 9% ▼ -21.00%
• Reading proficiency: 31% ▼ -1.00%
• Median HH income: $43,902
• Composite: 17.24/100
• National rank: #9093
• State rank: #106 of 129 in AL

Livability — Montgomery

• Score: 65/100
• State rank: #138
• US rank: #13416

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, AL
• County: Montgomery County · 190,016 people
• City population: 175,913
• Metro: Montgomery, AL
• Population (ZIP): 14,065
• Household income: $69,087
• Rent vs Own: 43.8% rent · 56.2% own
• Severe rent burden: 876.0

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 224,008 people
• By 2030: 221,460 · -1.1%
• By 2040: 214,179 · -4.4%
• By 2050: 204,912 · -8.5%
• By 2075: 177,821 · -20.6%
• By 2100: 145,134 · -35.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.58)
• Race & ethnicity: White 47% Black 43% Hispanic / Latino 5% Two or more races 4% Asian 1%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Serbian 2% Slovak 2% Italian 1%
• Foreign-born: 4% · Canada, China, South Korea
• Languages at home: 94% English-only · Spanish 3%

Political lean MEDSL · Montgomery

• 2024 margin: Solid D (+30.7) · D 64.8% · R 34.1% · Other 1.1%
• 2008→2024 swing: +11.5pp toward D · 2008: 19.2pp · 2024: 30.7pp
• All cycles: 2024: D+30.7 2020: D+31.5 2016: D+26.2 2012: D+24.3 2008: D+19.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -22.82%
• Current HPI: 151.1822
• Rent YoY: ▲ 6.29%
• Metro: Montgomery, 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

Price history

+12.0% since first listed

20 events — show timeline

• 2026-06-05 Listed $54,900 MAAR
• 2026-05-08 Sold (MLS) $30,500 MAAR
• 2026-04-15 Pending — MAAR
• 2026-04-15 Relisted — MAAR
• 2026-03-09 Price Changed $45,000 MAAR
• 2026-01-24 Price Changed $72,500 MAAR
• 2025-12-17 Price Changed $79,900 MAAR
• 2025-12-17 Listed $89,900 MAAR
• 2025-11-11 Listed $89,900 MAAR
• 2024-09-27 Rental Removed $1,150 MAAR
• 2024-06-12 Listed for Rent $1,150 MAAR
• 2023-03-09 Sold (MLS) $40,000 MAAR
• 2023-02-09 Pending — MAAR
• 2023-01-21 Relisted — MAAR
• 2023-01-13 Contingent — MAAR
• 2022-10-24 Listed $55,000 MAAR
• 2006-01-06 Sold (Public Records) $105,145 Public Records
• 2003-10-06 Sold (MLS) $25,000 MAAR
• 2003-07-10 Listed $39,500 MAAR
• 2003-03-05 Listed $49,000 MAAR

Property tax history

+6.6%/yr

Latest (2023): $309 · +49.8% YoY. Source: county tax records.