82 S Midway St

Clayton, AL 36016

$128,800D

4 bd · 3.0 ba · 2,688 sqft · Built 1947 · SingleFamily · Pending · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,201/mo
• Mortgage (P&I): −$675
• Tax + insurance: −$215
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $59/mo
• Annual: $703/yr
• Cap rate: 6.84%
• Cash-on-cash: 1.95%
• DSCR: 1.09
• 1% rule: 0.93%
• Cash to close: $36,064

Investor read

• This is a 4-bed/3.0-bath single-family listed at $129k.
• At list price, monthly cash flow is $59 ($703/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (6.8% below list).
• It's been on market 94 days — a 9% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (9.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($890 loan paydown + $5k appreciation (3.7% local appreciation)).
• Location reads 54/100 on livability (#453 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: health & safety D, amenities F, commute F.
• Barbour County (rural): math 10% / reading 16% proficiency, ranked #133 of 133 in AL (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 95% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Barbour County Intermediate School (math 0% / reading 16%, grade F, #597 of 627 statewide, top 95%, 263 students, 100% FRL); Barbour County High School (math 2% / reading 22%, grade F, #238 of 305 statewide, top 79%, 317 students, 100% FRL).
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 34 units permitted in Barbour County in 2024 (0 in 5+ unit buildings).
• Barbour County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 7y ago; this cycle's ask has dropped $32k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $82k; list at $129k implies a 57% gain — meaningful room to come down on a strong offer.
• At projected returns (3.7% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% 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

• It's been on market 94 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.