5624 Margaret Ave · Birmingham, AL 35221

$75,000

3 bd · 1.0 ba · 1,649 sqft · SingleFamily public records · 47 Days on market

Built 1962 10,454 sqft lot $45/sqft · at area comps Est $79k · at est.

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +9.6/15.0
• Appreciation +4.3/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +0.9/10.0

Listing remarks MLS

Charming 3-bedroom, 2-bath home in a low-traffic neighborhood. Perfect for the first-time homebuyer or an investor. Beautiful hardwood floors throughout. New vinyl windows and gutters with gutter-guards. Just waiting on your own touch!

Key facts

• Vinyl windows
• Hardwood floors
• Gutter-guards

Tags

• HARDWOOD FLOORS
• VINYL WINDOWS
• GUTTER-GUARDS
• LOW-TRAFFIC NEIGHBORHOOD

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $75k.

Deal economics

• At list price, monthly cash flow is $474 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $75k).
• Recommended offer: $73k (3.0% below list) — sets the bar for market timing.
• Cap rate 13.9% vs local median 6.2% in Birmingham — 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.

Location & tenants

• Location reads 67/100 on livability (#78 in AL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities C-, schools F, crime F.
• Birmingham City (urban): math 4% / reading 20% proficiency, ranked #116 of 129 in AL (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 26 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-1.3%/yr); year-one equity from $519 of loan paydown is wiped out by about $988 of value loss. Plan a longer hold.
• Jefferson County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-1.3% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 47 days — a 3% lower offer ($73k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $51k; 47% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 27% 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.

Recommended offer $72,750 (3.0% below list)

Questions for the listing agent

1. It's been on market 47 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 1.63% ✓
• Cap rate: 13.88%
• Cash-on-cash: 27.10%
• DSCR: 2.21
• GRM: 5.1

CMA / ARV

• ARV (median comp): $78,668
• List price: $75,000
• Delta: -4.66%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
6600 Ave K	0.27mi	3/2.0	1,662 (+1%)	18mo	$82,000	$49	67
5440 Gordon Ave SW	0.32mi	3/1.0	1,860 (+13%)	13mo	$36,000	$19	53
4925 Park Ave SW	0.72mi	3/1.0	1,600 (-3%)	15mo	$43,500	$27	49

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-1.32% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 24.7%
• Equity multiple: 2.12×
• Total profit: $23,486
• Equity at exit: $16,967

10-year hold

• IRR: 30.3%
• Equity multiple: 4.07×
• Total profit: $64,370
• Equity at exit: $16,865

Cash invested: $21,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Alabama: 90 Strongly Landlord-Friendly · R+15
• County: — inherits STATE
• City: — inherits STATE

Right-to-evict in 7 days for non-payment; no rent control; preempted statewide; courts move quickly.

Methodology + full state rankings →

ZIP-level market 35221

• Home prices YoY: -1.1%
• Active inventory: 26
• Price-to-rent: 5.1×

Monthly cashflow live

• Estimated rent: $1,222 high
• Mortgage (P&I): −$393
• Tax from tax record: −$67 /mo · $800/yr
• Insurance: −$31
• HOA: −$0
• Vacancy / Maint / Mgmt: −$257
• Net cashflow: $474

Break-even live

Break-even rent $622

Max offer price $75,000

Occupancy floor 56%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $18,750
• Closing costs: $2,250
• Reserves months: —
• Total cash needed: —

Rent comps 16 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5709 13th St S Bessemer, AL	3.0	1.0	1120	$1,200	$1.07	43d	1	0.49mi
5624 Cairo Ave Birmingham, AL	4.0	2.0	1386	$1,200	$0.87	43d	1	0.81mi
5606 Avenue K Bessemer, AL	4.0	2.0	1940	$1,300	$0.67	2d	1	0.96mi
6025 Ivy St Birmingham, AL	4.0	2.0	1232	$1,300	$1.06	43d	1	0.98mi
6029 Ivy St Birmingham, AL	4.0	2.0	1234	$1,200	$0.97	43d	1	0.98mi
5912 Owen St Bessemer, AL	3.0	1.5	1192	$1,300	$1.09	43d	1	1.10mi
3640 Wenonah Rd SW Birmingham, AL	3.0	2.0	1100	$1,195	$1.09	23d	1	1.24mi
3640 Wenonah Rd SW Birmingham, AL	3.0	2.0	1100	$1,195	$1.09	11d	1	1.24mi
63 Wilkes Cir Birmingham, AL	4.0	1.0	1164	$1,200	$1.03	43d	1	1.35mi
63 Wilkes Cir Unit 1 Birmingham, AL	4.0	1.0	1164	$1,250	$1.07	43d	1	1.36mi
4029 Walnut Ave SW Birmingham, AL	2.0	1.0	1300	$1,369	$1.05	3d	1	1.36mi
80 Wilkes Cir Birmingham, AL	4.0	2.0	1078	$1,200	$1.11	14d	1	1.39mi
537 Grant St Birmingham, AL	3.0	1.0	1444	$1,200	$0.83	23d	1	1.39mi
3720 Howard Ave SW Birmingham, AL	3.0	1.0	1092	$1,200	$1.10	23d	1	1.46mi
925 Woodward Rd Birmingham, AL	2.0	2.0	1104	$950	$0.86	43d	1	1.48mi
923 Woodward Rd Birmingham, AL	3.0	1.0	1273	$1,200	$0.94	23d	1	1.48mi

Listing history 5 events

1. 2026-06-02
   days on market $75,000 Active 47 DOM
2. 2026-06-01
   days on market $75,000 Active 46 DOM
3. 2026-05-31
   days on market $75,000 Active 45 DOM
4. 2026-04-16
   listed $75,000 Active 235-char remark

   Show marketing remark (235 chars)

   Charming 3-bedroom, 2-bath home in a low-traffic neighborhood. Perfect for the first-time homebuyer or an investor. Beautiful hardwood floors throughout. New vinyl windows and gutters with gutter-guards. Just waiting on your own touch!

5. 1997-06-30
   soldstatus $51,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast AL · Resets to sale price

• Current annual tax: $800 · $67/mo
• Projected year-2 tax: $800 · $67/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,664
• − Mortgage interest: −$4,201
• − Property taxes: −$800
• − Insurance: −$375
• − Repairs & maintenance: −$1,173
• − Management: −$1,173
• − Depreciation: −$2,182
• Taxable income: $4,760
• Est. tax owed @ 24.0%: −$1,142
• After-tax cash flow: $4,548/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Birmingham City
• NCES district ID: 0100390
• Math proficiency: 4% ▼ -17.00%
• Reading proficiency: 20% ▼ -4.00%
• Median HH income: $31,988
• Composite: 9.49/100
• National rank: #9850
• State rank: #116 of 129 in AL

Livability — Birmingham

• Score: 67/100
• State rank: #78
• US rank: #10412

Category grades

Amenities C- Commute A+ Cost of living A+ Crime F Employment F Housing A+ Health & safety F User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Birmingham, AL
• City population: 210,422
• Population (ZIP): 3,127

Population outlook (Jefferson County) Hauer SSP2

• Today (2025): 669,185 people
• By 2030: 669,694 · +0.1%
• By 2040: 661,388 · -1.2%
• By 2050: 643,086 · -3.9%
• By 2075: 577,267 · -13.7%
• By 2100: 474,758 · -29.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (89%)
• Race & ethnicity: Black 89% Two or more races 7% Hispanic / Latino 6% White 4%
• Hispanic origin (detail): Mexican 6%
• Foreign-born: 3% · Canada
• Languages at home: 93% English-only · Spanish 6%

Political lean MEDSL · Jefferson

• 2024 margin: D (+10.4) · D 54.6% · R 44.2% · Other 1.2%
• 2008→2024 swing: +5.4pp toward D · 2008: 5.1pp · 2024: 10.4pp
• All cycles: 2024: D+10.4 2020: D+13.2 2016: D+7.2 2012: D+6.0 2008: D+5.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -1.32%
• Current HPI: 121.0566
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.94%
• F500 in state: 4

Industry mix (Fortune 500 HQ in AL)

Industry	F500 HQs	Revenue
▸Financial Services	1	$8B
▸Healthcare	1	$5B

Price history

+47.1% since first listed

2 events — show timeline

• 2026-04-16 Listed $75,000 Greater Alabama MLS
• 1997-06-30 Sold (Public Records) $51,000 Public Records

Property tax history

+5.4%/yr

Latest (2025): $800 · +7.6% YoY. Source: county tax records.