732 Avenue A

Selmont-West Selmont, AL 36701

$5,900D

3 bd · 1.0 ba · 1,231 sqft · Built 1983 · SingleFamily · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,000/mo
• Mortgage (P&I): −$31
• Tax + insurance: −$13
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $746/mo
• Annual: $8,951/yr
• Cap rate: 158.00%
• Cash-on-cash: 541.82%
• DSCR: 25.11
• 1% rule: 16.95%
• Cash to close: $1,652

Investor read

• This is a 3-bed/1.0-bath single-family listed at $6k.
• At list price, monthly cash flow is $746 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $6k).
• It's been on market 32 days — a 3% lower offer ($6k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $41 of loan paydown is wiped out by about $177 of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Dallas County (rural): math 2% / reading 22% proficiency, ranked #115 of 129 in AL (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Southside Primary School (151 students, 93% FRL); Southside High School (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 296 students, 91% FRL).
• Market conditions: 104 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 7 units permitted in Dallas County in 2024 (0 in 5+ unit buildings).
• Dallas County population projected at -36% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.
• 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.

Questions for listing agent

• It's been on market 32 days. Have you received any prior offers? Is the seller open to a 3% 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.
• 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.