146 1st Ave

Jemison, AL 35085

$210,000D

4 bd · 2.0 ba · 2,060 sqft · Built 1976 · SingleFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,495/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$163
• HOA: −$0
• Vac / Maint / Mgmt: −$314
• Net cashflow: $-83/mo
• Annual: $-997/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• 1% rule: 0.71%
• Cash to close: $58,800

Investor read

• This is a 4-bed/2.0-bath single-family listed at $210k.
• At list price, monthly cash flow is $-83 ($-997/yr) — negative.
• To cash-flow at today's rent, offer at most $195k (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (28.8% below list).
• It's been on market 60 days — a 3% lower offer ($204k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (28.8% 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 57/100 on livability (#393 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Chilton County (rural): math 15% / reading 34% proficiency, ranked #94 of 129 in AL (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Jemison Elementary School (math 8% / reading 37%, grade F, #437 of 627 statewide, top 70%, 740 students, 77% FRL); Clanton Middle School (math 7% / reading 35%, grade F, #188 of 257 statewide, top 74%, 478 students, 74% FRL); Jemison High School (math 12% / reading 17%, grade F, #220 of 305 statewide, top 77%, 686 students, 80% FRL) — zoned schools average 77% FRL vs 54% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 60 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 25 units permitted in Chilton County in 2024 (0 in 5+ unit buildings).
• Chilton County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $67k; list at $210k implies a 213% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 64% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 4.1% in Jemison — 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 29% concession, seller financing, or rate buy-down credit?
• Built in 1976 — 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 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.