208 Petunia Dr

Taylor, AL 36301

$184,000D-

3 bd · 2.0 ba · 1,242 sqft · Built 1994 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,357/mo
• Mortgage (P&I): −$965
• Tax + insurance: −$119
• HOA: −$0
• Vac / Maint / Mgmt: −$285
• Net cashflow: $-11/mo
• Annual: $-134/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.26%
• DSCR: 0.99
• 1% rule: 0.74%
• Cash to close: $51,520

Investor read

• This is a 3-bed/2.0-bath single-family listed at $184k.
• At list price, monthly cash flow is $-11 ($-134/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (1.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $136k (26.2% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $136k (26.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#123 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, health & safety D, amenities F.
• Houston County (rural): math 25% / reading 49% proficiency, ranked #38 of 129 in AL (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rehobeth Elementary School (math 51% / reading 69%, grade B-, #61 of 627 statewide, top 10%, 1,174 students, 58% FRL); Rehobeth Middle School (math 22% / reading 54%, grade F, #69 of 257 statewide, top 27%, 626 students, 58% FRL); Rehobeth High School (math 32% / reading 27%, grade F, #70 of 305 statewide, top 27%, 788 students, 52% FRL) — zoned schools at 56% FRL track the district average.
• Market conditions: 412 active listings in the ZIP; 463 units permitted in Houston County in 2024 (96 in 5+ unit buildings).
• Houston County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.