394 Clay St

Goodwater, AL 35072

$79,500B

4 bd · 2.0 ba · 2,120 sqft · Built 1950 · SingleFamily · Active · 165 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,222/mo
• Mortgage (P&I): −$417
• Tax + insurance: −$132
• HOA: −$0
• Vac / Maint / Mgmt: −$257
• Net cashflow: $416/mo
• Annual: $4,990/yr
• Cap rate: 12.57%
• Cash-on-cash: 22.42%
• DSCR: 2.00
• 1% rule: 1.54%
• Cash to close: $22,260

Investor read

• This is a 4-bed/2.0-bath single-family listed at $80k. Condition is rated fair.
• At list price, monthly cash flow is $416 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 165 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($550 loan paydown + $2k appreciation (2.8% local appreciation)).
• Location reads 65/100 on livability (#136 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, employment F.
• Coosa County (rural): math 6% / reading 30% proficiency, ranked #110 of 129 in AL (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Central Elementary School (math 7% / reading 29%, grade F, #481 of 627 statewide, top 77%, 443 students, 67% FRL); Central High School (math 2% / reading 32%, grade F, #190 of 305 statewide, top 63%, 362 students, 59% FRL) — zoned schools at 63% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP.
• Coosa County population projected at -44% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 55% 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.

Questions for listing agent

• It's been on market 165 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1950 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen appliances — Need replacement due to poor condition.
• Major: Bathroom fixtures — Stained and worn, need replacement.
• Major: Flooring — Dirty and worn, need replacement or cleaning.
• Major: Paint — Worn and discolored, needs repainting.
• Major: Landscaping — Needs trimming and planting to improve curb appeal.