1506 9th St W

Red Bay, AL 35582

$89,000C+

2 bd · 1.0 ba · 1,242 sqft · Built 1963 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,023/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$215
• Net cashflow: $193/mo
• Annual: $2,319/yr
• Cap rate: 8.90%
• Cash-on-cash: 9.31%
• DSCR: 1.41
• 1% rule: 1.15%
• Cash to close: $24,920

Investor read

• This is a 2-bed/1.0-bath single-family listed at $89k. Condition is rated fair.
• At list price, monthly cash flow is $193 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $89k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $607 of equity ($615 loan paydown + $-8 appreciation (-0.0% local appreciation)).
• Location reads 63/100 on livability (#194 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime B; Watch: amenities F, commute F, employment F.
• Franklin County (rural): math 17% / reading 36% proficiency, ranked #84 of 129 in AL (top 65%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Red Bay Elementary (math 22% / reading 45%, grade F, #318 of 627 statewide, top 51%, 421 students, 51% FRL); Red Bay High School (math 12% / reading 37%, grade F, #118 of 305 statewide, top 45%, 351 students, 51% FRL) — zoned schools at 51% FRL track the district average.
• Market conditions: 24 active listings in the ZIP; 15 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• At projected returns (-0.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~7 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible wear and tear.
• Minor: exterior walls — The siding appears to be in fair condition, but there is some peeling paint.
• Major: flooring — The flooring in the interior appears to be in poor condition, with visible wear and tear.
• Minor: interior walls — The paint appears to be peeling in some areas.
• Minor: landscaping — The landscaping is fair, with some overgrown areas and a lack of maintenance.
• Minor: HVAC — The HVAC system appears to be in fair condition, but there is no visible evidence of recent maintenance or updates.