8702 Division Ave · Birmingham, AL 35206

$59,900

3 bd · 1.0 ba · 1,092 sqft · SingleFamily · 5 Days on market

Built 1935 Poor condition 7,840 sqft lot Est $82k · 27% under

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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
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.4/5.0
• Rent growth +3.0/5.0
• Condition / age +1.0/5.0
• Schools +0.9/10.0
• Appreciation +0.0/10.0

Listing remarks

SPACIOUS HOME

Key facts

• 7,840 sq ft lot
• Built 1935
• Listed 5 days

Property features AI

Finance

• HOA & community: No association fees

Exterior

• Parking: Driveway parking
• Security: No security features listed
• Utilities: Public water; Electric water heater; Internet service available
• Home design: Existing home; Single-story layout (all rooms listed on main level); Wood construction
• Construction: Wood construction; Crawl space foundation
• Exterior features: No pool; No patio or garden/patio; No decks; Not waterfront; Lot approximately 0.18 acres

Interior

• Kitchen: No kitchen appliance details provided
• Bedrooms: Three bedrooms on the main level
• Flooring: Hardwood floors
• Bathrooms: One full bathroom with tub/shower combo on the main level
• Heating & cooling: Central heating; Central cooling
• Interior features: Hardwood flooring; Ceilings: other (see remarks); No additional interior features listed
• Laundry & utility: Main-level laundry room with washer hookup and electric dryer hookup

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $60k. Condition is rated poor.

Deal economics

• At list price, monthly cash flow is $536 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• Cap rate 17.0% 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-, crime F, employment 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.
• Zoned schools: Robinson Elementary School (math 2% / reading 12%, grade F, #601 of 627 statewide, top 98%, 344 students, 85% FRL); Woodlawn High Schoolmagnet (math 2% / reading 2%, grade F, #291 of 305 statewide, top 100%, 738 students, 91% FRL).
• Market conditions: Rents rising (+1.8%/yr); 128 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; lower-income renter base — watch delinquency; 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).
• This rent runs 34% of the median local income ($43k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $414 of loan paydown is wiped out by about $2k 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 (-3.0% appreciation + 1.8% rent growth), your $17k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $59,900

Questions for the listing agent

1. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
2. Built in 1935 — 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: 2.01% ✓
• Cap rate: 17.03%
• Cash-on-cash: 38.36%
• DSCR: 2.71
• GRM: 4.2

CMA / ARV

• ARV (on-the-fly): $81,900
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
8606 N 2nd Ave	0.16mi	3/1.0	1,130 (+4%)	7mo	$95,100	$84	81
8313 3rd Ave S	0.48mi	3/1.0	1,195 (+9%)	2mo	$90,000	$75	60
8229 Rugby Ave	0.65mi	3/2.0	1,120 (+3%)	7mo	$46,000	$41	55
636 83rd Pl	0.71mi	3/1.0	1,062 (-3%)	8mo	$40,000	$38	55
8334 4th Ave S	0.46mi	2/1.0 (-1)	1,029 (-6%)	11mo	$128,750	$125	55
306 S 83rd St	0.53mi	3/1.0	1,176 (+8%)	13mo	$88,000	$75	52
8405 3rd Ave S	0.40mi	3/1.0	1,232 (+13%)	10mo	$65,000	$53	52
518 84th St S	0.56mi	2/1.0 (-1)	993 (-9%)	4mo	$45,500	$46	51
429 86th Pl S	0.43mi	2/1.0 (-1)	936 (-14%)	2mo	$45,000	$48	50
8311 7th Ave S	0.75mi	4/1.0 (+1)	1,143 (+5%)	8mo	$130,000	$114	46
411 Valley Rd	0.51mi	3/2.0	1,252 (+15%)	8mo	$110,000	$88	41
9048 Bel Air Dr	0.65mi	2/1.0 (-1)	940 (-14%)	8mo	$90,000	$96	34

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

Projected returns pro-forma

-3.0% appreciation · 1.82% rent growth · sell at horizon

5-year hold

• IRR: 33.1%
• Equity multiple: 2.37×
• Total profit: $23,051
• Equity at exit: $8,931

10-year hold

• IRR: 39.5%
• Equity multiple: 4.49×
• Total profit: $58,464
• Equity at exit: $5,179

Cash invested: $16,772 (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 35206

• Home prices YoY: -32.0%
• Rents YoY: 1.8%
• Active inventory: 128
• Price-to-rent: 4.2×

Monthly cashflow live

• Estimated rent: $1,203 high
• Mortgage (P&I): −$314
• Tax est. 1.5%: −$75 /mo · $898/yr
• Insurance: −$25
• HOA: −$0
• Vacancy / Maint / Mgmt: −$253
• Net cashflow: $536

Break-even live

Break-even rent $524

Max offer price $59,900

Occupancy floor 50%

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: $14,975
• Closing costs: $1,797
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
8416 Division Ave Birmingham, AL	3.0	2.0	1470	$1,350	$0.92	44d	1	0.25mi
8513 4th Ave S Birmingham, AL	3.0	1.0	1150	$1,150	$1.00	44d	1	0.35mi
425 87th St S Birmingham, AL	2.0	1.0	890	$1,077	$1.21	44d	1	0.42mi
8240 2nd Ave S Birmingham, AL	2.0	1.0	990	$875	$0.88	23d	1	0.46mi
8408 5th Ave S Birmingham, AL	3.0	1.0	1100	$1,528	$1.39	44d	1	0.46mi
8408 5th Ave S Birmingham, AL	3.0	1.0	890	$1,295	$1.46	10d	1	0.46mi
8333 4th Ave N Birmingham, AL	4.0	2.0	1384	$1,300	$0.94	44d	1	0.47mi
8300 4th Ave N Birmingham, AL	4.0	2.0	1455	$1,300	$0.89	44d	1	0.55mi
8149 1st Ave S Birmingham, AL	3.0	2.0	1300	$1,200	$0.92	44d	1	0.58mi
8202 4th Ave S Birmingham, AL	3.0	1.0	1178	$1,075	$0.91	44d	1	0.60mi
8917 Roebuck Blvd Apt 11 Birmingham, AL	2.0	1.0	880	$725	$0.82	16d	1	0.60mi
8128 2nd Ave S Birmingham, AL	4.0	1.0	1390	$1,150	$0.83	23d	1	0.63mi
8129 2nd Ave S Unit B Birmingham, AL	2.0	1.0	900	$800	$0.89	44d	1	0.65mi
624 83rd Pl S Birmingham, AL	2.0	1.0	780	$975	$1.25	44d	1	0.66mi
8211 Rugby Ave Birmingham, AL	4.0	1.0	966	$1,250	$1.29	44d	1	0.67mi
636 83rd Pl S Birmingham, AL	2.0	2.0	1062	$1,175	$1.11	44d	1	0.69mi
8108 4th Ave S Birmingham, AL	3.0	2.0	1384	$1,200	$0.87	44d	1	0.71mi
8242 Vassar Ave Birmingham, AL	4.0	1.0	1212	$1,100	$0.91	44d	1	0.76mi
8021 1st Ave S Unit A Birmingham, AL	3.0	1.0	980	$950	$0.97	23d	1	0.78mi
8035 4th Ave S Birmingham, AL	3.0	2.0	1096	$1,050	$0.96	44d	1	0.81mi
512 81st St S Birmingham, AL	3.0	1.0	1156	$1,150	$0.99	44d	1	0.82mi
730 82nd Pl S Birmingham, AL	3.0	1.0	896	$1,023	$1.14	3d	1	0.83mi
514 81st St S Birmingham, AL	4.0	2.0	1174	$1,295	$1.10	44d	1	0.83mi
745 82nd Pl S Birmingham, AL	3.0	2.0	1200	$1,168	$0.97	2d	1	0.85mi
8020 4th Ave N Birmingham, AL	3.0	1.0	1200	$1,200	$1.00	44d	1	0.85mi
8122 Rugby Ave Unit B Birmingham, AL	2.0	1.0	900	$795	$0.88	44d	1	0.89mi
731 81st St S Birmingham, AL	3.0	1.0	1221	$995	$0.81	10d	1	0.91mi
735 81st St S Birmingham, AL	3.0	2.0	1224	$1,400	$1.14	23d	1	0.92mi
775 81st Pl S Birmingham, AL	3.0	1.0	1232	$1,095	$0.89	23d	1	0.97mi
7829 3rd Ave S Birmingham, AL	3.0	1.5	1005	$1,025	$1.02	44d	1	0.99mi
7931 7th Ave S Birmingham, AL	3.0	1.0	1320	$1,450	$1.10	44d	1	1.00mi
764 81st St S Unit B Birmingham, AL	2.0	1.0	800	$800	$1.00	44d	1	1.01mi
8229 9th Ave S Birmingham, AL	2.0	1.0	997	$1,195	$1.20	3d	1	1.02mi
8013 Rugby Ave Birmingham, AL	3.0	2.0	1460	$1,150	$0.79	23d	1	1.03mi
8621 10th Ave S Birmingham, AL	3.0	2.0	1240	$1,400	$1.13	23d	1	1.04mi
7815 4th Ave S Birmingham, AL	3.0	2.0	1496	$1,650	$1.10	1d	1	1.05mi
7801 3rd Ave S Unit B Birmingham, AL	2.0	1.5	1100	$1,000	$0.91	44d	1	1.06mi
768 80th Pl S Unit 1 Birmingham, AL	3.0	2.0	1134	$1,200	$1.06	44d	1	1.07mi
7728 1st Ave S Apt C Birmingham, AL	2.0	1.0	950	$950	$1.00	44d	1	1.14mi
7721 1st Ave S Birmingham, AL	3.0	1.0	956	$949	$0.99	23d	1	1.16mi

Listing history 2 events

1. 2026-05-14
   status Pending
2. 2026-05-06
   listed $59,900 Active

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

Taxation est. · year 1

• Rental income: $14,433
• − Mortgage interest: −$3,355
• − Property taxes: −$898
• − Insurance: −$300
• − Repairs & maintenance: −$1,155
• − Management: −$1,155
• − Depreciation: −$1,743
• Taxable income: $5,828
• Est. tax owed @ 24.0%: −$1,399
• After-tax cash flow: $5,036/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.

Condition & rehab AI · 1 photo

Poor 20/100 Extensive rehab

This property is in poor condition with extensive repairs and maintenance needed. Immediate attention to the driveway and exterior is crucial for safety and curb appeal.

Repairs flagged

• Major Abandoned vehicles — Safety hazard and obstruction
• Major Driveway debris — Safety hazard and obstruction
• Major Exterior cleaning — Neglect and potential structural issues

Value-add opportunities

• Both Clean and organize the driveway — Improves curb appeal and safety
• Both Exterior cleaning and maintenance — Improves curb appeal and safety
• Both Interior cleaning and repairs — Improves safety and functionality

Renovation cost estimate screening

Repair item	Severity	Est. cost
Abandoned vehicles · Safety hazard and obstruction	Major	$15,000–50,000
Driveway debris · Safety hazard and obstruction	Major	$15,000–50,000
Exterior cleaning · Neglect and potential structural issues	Major	$15,000–50,000
Total estimated repair cost · 3 items		$45,000–150,000

Value-add ROI direction

• Both Clean and organize the driveway — Improves curb appeal and safety ↑
• Both Exterior cleaning and maintenance — Improves curb appeal and safety ↑
• Both Interior cleaning and repairs — Improves safety and functionality ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

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
• County: Jefferson County · 527,445 people
• City population: 210,422
• Metro: Birmingham-Hoover, AL
• Population (ZIP): 15,621
• Household income: $42,549
• Rent vs Own: 51.1% rent · 48.9% own
• Severe rent burden: 1169.0

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 (73%)
• Race & ethnicity: Black 73% White 22% Two or more races 3% Hispanic / Latino 2%
• Common ancestry: Slovak 1%
• Foreign-born: 3% · Canada
• Languages at home: 97% English-only · Spanish 2% Other Indo-European 0%

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: ▼ -68.70%
• Current HPI: 146.2168
• Rent YoY: ▲ 1.82%
• Metro: Birmingham-Hoover, AL
• 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

2 events — show timeline

• 2026-05-14 Pending — Greater Alabama MLS
• 2026-05-06 Listed $59,900 Greater Alabama MLS