7020 Division Ave · Birmingham, AL 35206

$60,000

3 bd · 1.0 ba · 1,085 sqft · SingleFamily public records · 65 Days on market

Built 1925 8,276 sqft lot $55/sqft · 31% below area Est $87k · 31% 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 +2.5/5.0
• Schools +0.9/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Located in the established East Lake neighborhood, this 2-bedroom, 1-bathroom home offers a great opportunity for investors or those looking for a project in a convenient location. This home has experienced fire damage — enter at your own risk. Positioned on a residential street along Division Avenue, the property is just minutes from East Lake Park, known for its walking trails, lake, and recreational amenities. Enjoy close proximity to Downtown Birmingham, as well as nearby areas like Avondale and Woodlawn for dining, shopping, and entertainment. Convenient access to major roadways, including I-20 and I-59, makes commuting easy, and Birmingham-Shuttlesworth International Airport is just a short drive away. This property is being sold AS-IS and presents a unique opportunity in a growing area with strong accessibility and neighborhood charm.

Key facts

• Major roadways
• Downtown birmingham
• Growing area

Tags

• EAST LAKE NEIGHBORHOOD
• WALKING TRAILS
• RECREATIONAL AMENITIES
• DOWNTOWN BIRMINGHAM
• MAJOR ROADWAYS
• GROWING AREA

What this means for you Summary

Snapshot

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

Deal economics

• At list price, monthly cash flow is $418 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• Recommended offer: $56k (6.0% below list) — sets the bar for market timing.
• Cap rate 14.7% 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: 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); 50% 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 31% 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 $415 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 ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 65 days — a 6% lower offer ($56k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 12y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $56,400 (6.0% below list)

Questions for the listing agent

1. It's been on market 65 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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: 1.85% ✓
• Cap rate: 14.65%
• Cash-on-cash: 29.86%
• DSCR: 2.33
• GRM: 4.5

CMA / ARV

• ARV (median comp): $87,149
• List price: $60,000
• Delta: -31.15%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
6817 Division Ave	0.20mi	3/1.0	1,104 (+2%)	3mo	$93,000	$84	85
221 72nd St S	0.27mi	3/1.0	1,015 (-6%)	2mo	$75,000	$74	75
220 69th Pl N	0.26mi	3/1.0	1,000 (-8%)	13mo	$45,500	$46	64
7709 S 1st Ave	0.65mi	3/1.0	1,064 (-2%)	3mo	$60,000	$56	64
6712 2nd Ave S	0.35mi	4/2.5 (+1)	1,132 (+4%)	2mo	$149,900	$132	64
400 72nd St N	0.38mi	3/1.0	958 (-12%)	1mo	$39,500	$41	62
6724 S 2nd Ave	0.34mi	4/2.0 (+1)	1,188 (+10%)	3mo	$113,000	$95	57
7005 S 1st Ave	0.11mi	2/1.0 (-1)	930 (-14%)	11mo	$72,000	$77	57
6511 3rd Ave S	0.58mi	3/1.0	1,020 (-6%)	10mo	$25,000	$25	55
7105 3rd Ave N	0.24mi	3/2.0	1,231 (+14%)	11mo	$169,900	$138	54
7213 Higdon Rd	0.68mi	3/1.5	1,008 (-7%)	12mo	$60,000	$60	45
900 Dublin Ave	0.72mi	3/1.0	1,190 (+10%)	10mo	$60,000	$50	42

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: 23.0%
• Equity multiple: 1.93×
• Total profit: $15,644
• Equity at exit: $8,946

10-year hold

• IRR: 30.2%
• Equity multiple: 3.55×
• Total profit: $42,864
• Equity at exit: $5,188

Cash invested: $16,800 (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: 4.5×

Monthly cashflow live

• Estimated rent: $1,111 high
• Mortgage (P&I): −$315
• Tax from tax record: −$120 /mo · $1,441/yr
• Insurance: −$25
• HOA: −$0
• Vacancy / Maint / Mgmt: −$233
• Net cashflow: $418

Break-even live

Break-even rent $582

Max offer price $60,000

Occupancy floor 57%

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: $15,000
• Closing costs: $1,800
• Reserves months: —
• Total cash needed: —

Rent comps 40 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
7017 Division Ave Birmingham, AL	3.0	1.0	1100	$1,050	$0.95	43d	1	0.04mi
7119 1st Ave S Birmingham, AL	2.0	1.0	720	$1,000	$1.39	43d	1	0.16mi
6820 Division Ave Birmingham, AL	3.0	2.0	1122	$1,050	$0.94	23d	1	0.20mi
201 70th St S Birmingham, AL	2.0	1.0	989	$950	$0.96	43d	1	0.20mi
7005 2nd Ave S Birmingham, AL	2.0	1.0	939	$950	$1.01	43d	1	0.20mi
224 69th Pl N Birmingham, AL	3.0	1.0	894	$975	$1.09	43d	1	0.25mi
7129 3rd Ave S Birmingham, AL	3.0	2.0	1264	$1,095	$0.87	3d	1	0.30mi
117 67th Pl N Birmingham, AL	3.0	1.0	1202	$800	$0.67	15d	1	0.31mi
7330 1st Ave S Birmingham, AL	3.0	1.0	1299	$1,000	$0.77	1d	1	0.33mi
7025 4th Ave S Birmingham, AL	3.0	1.0	1090	$845	$0.78	43d	1	0.36mi
126 66th Pl N Birmingham, AL	2.0	1.0	1038	$1,200	$1.16	14d	1	0.42mi
605 71st St S Birmingham, AL	3.0	1.5	1024	$1,303	$1.27	1d	1	0.52mi
6732 Frankfort Ave Birmingham, AL	3.0	1.0	924	$995	$1.08	43d	1	0.61mi
7620 4th Ave S Birmingham, AL	3.0	1.0	1144	$1,025	$0.90	43d	1	0.66mi
7721 1st Ave S Birmingham, AL	3.0	1.0	956	$949	$0.99	23d	1	0.69mi
7728 1st Ave S Apt C Birmingham, AL	2.0	1.0	950	$950	$1.00	43d	1	0.70mi
417 Athens Ave Birmingham, AL	3.0	1.5	978	$1,250	$1.28	23d	1	0.71mi
6936 66th St S Birmingham, AL	3.0	1.0	880	$1,050	$1.19	43d	1	0.76mi
6309 3rd Ave S Birmingham, AL	4.0	2.0	1228	$1,495	$1.22	1d	1	0.80mi
7801 3rd Ave S Unit B Birmingham, AL	2.0	1.5	1100	$1,000	$0.91	43d	1	0.87mi
7728 Rugby Ave Birmingham, AL	2.0	1.0	700	$850	$1.21	43d	1	0.87mi
7701 7th Ave S Birmingham, AL	2.0	1.0	800	$850	$1.06	23d	1	0.87mi
630 77th St S Birmingham, AL	2.0	2.0	1100	$983	$0.89	2d	1	0.88mi
7740 Rugby Ave Unit b Birmingham, AL	2.0	1.0	800	$1,100	$1.38	43d	1	0.92mi
7740 Rugby Ave Unit 2 Birmingham, AL	2.0	1.0	800	$1,000	$1.25	43d	1	0.92mi
7829 3rd Ave S Birmingham, AL	3.0	1.5	1005	$1,025	$1.02	43d	1	0.93mi
7815 4th Ave S Birmingham, AL	3.0	2.0	1496	$1,650	$1.10	1d	1	0.93mi
7213 Naples Ave Birmingham, AL	3.0	1.5	925	$1,100	$1.19	43d	1	0.94mi
7213 Naples Ave Birmingham, AL	3.0	1.5	937	$1,100	$1.17	11d	1	0.94mi
7404 Paris Ave Birmingham, AL	3.0	1.5	802	$1,200	$1.50	43d	1	1.01mi
137 59th St N Apt 6 Birmingham, AL	2.0	1.0	800	$725	$0.91	43d	1	1.03mi
137 59th St N Unit 3 Birmingham, AL	2.0	1.0	800	$725	$0.91	23d	1	1.03mi
7216 Paris Ave Birmingham, AL	3.0	1.5	966	$1,125	$1.16	19d	1	1.04mi
7313 Paris Ave Birmingham, AL	3.0	2.0	1000	$1,395	$1.40	2d	1	1.04mi
8020 4th Ave N Birmingham, AL	3.0	1.0	1200	$1,200	$1.00	43d	1	1.06mi
8021 1st Ave S Unit A Birmingham, AL	3.0	1.0	980	$950	$0.97	23d	1	1.06mi
756 Vanderbilt St Birmingham, AL	3.0	2.0	1096	$1,000	$0.91	43d	1	1.08mi
516 Athens Ct Birmingham, AL	2.0	1.0	738	$1,123	$1.52	1d	1	1.09mi
5811 2nd Ave N Birmingham, AL	2.0	1.0	1000	$1,200	$1.20	3d	1	1.09mi
559 63rd St S Birmingham, AL	3.0	1.0	930	$1,000	$1.08	3d	1	1.11mi

Listing history 19 events

1. 2026-06-18
   days on market $60,000 Active 65 DOM
2. 2026-06-17
   days on market $60,000 Active 64 DOM
3. 2026-06-16
   days on market $60,000 Active 63 DOM
4. 2026-06-15
   days on market $60,000 Active 62 DOM
5. 2026-06-13
   days on market $60,000 Active 60 DOM
6. 2026-06-10
   days on market $60,000 Active 57 DOM
7. 2026-06-09
   days on market $60,000 Active 56 DOM
8. 2026-06-08
   days on market $60,000 Active 55 DOM
9. 2026-06-07
   days on market $60,000 Active 54 DOM
10. 2026-06-03
    days on market $60,000 Active 50 DOM
11. 2026-06-02
    days on market $60,000 Active 49 DOM
12. 2026-06-01
    days on market $60,000 Active 48 DOM
13. 2026-05-31
    days on market $60,000 Active 47 DOM
14. 2026-04-14
    listed $60,000 Active 859-char remark

    Show marketing remark (859 chars)

    Located in the established East Lake neighborhood, this 2-bedroom, 1-bathroom home offers a great opportunity for investors or those looking for a project in a convenient location. This home has experienced fire damage — enter at your own risk. Positioned on a residential street along Division Avenue, the property is just minutes from East Lake Park, known for its walking trails, lake, and recreational amenities. Enjoy close proximity to Downtown Birmingham, as well as nearby areas like Avondale and Woodlawn for dining, shopping, and entertainment. Convenient access to major roadways, including I-20 and I-59, makes commuting easy, and Birmingham-Shuttlesworth International Airport is just a short drive away. This property is being sold AS-IS and presents a unique opportunity in a growing area with strong accessibility and neighborhood charm.

15. 2022-01-18
    price $895
16. 2021-08-05
    soldstatus $102,000
17. 2014-12-30
    soldstatus $11,998 300-char remark

    Show marketing remark (300 chars)

    Conveniently located to the interstate, schools and shopping, this 2-bedroom home has a large front porch, vinyl siding and a large, flat, fenced back yard. Inside, the home has ample-sized rooms. hardwood flooring, a formal dining room, and is ready for your updating. Right of redemption may apply.

18. 2014-11-17
    listed $9,900 300-char remark

    Show marketing remark (300 chars)

    Conveniently located to the interstate, schools and shopping, this 2-bedroom home has a large front porch, vinyl siding and a large, flat, fenced back yard. Inside, the home has ample-sized rooms. hardwood flooring, a formal dining room, and is ready for your updating. Right of redemption may apply.

19. 1991-02-19
    soldstatus $31,500

ⓘ 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: $1,441 · $120/mo
• Projected year-2 tax: $1,441 · $120/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 4/10 Moderate FEMA zone X (unshaded) · 22% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥106°F today · 20 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 5/10 Major 7 unhealthy d/yr today · 9 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,334
• − Mortgage interest: −$3,361
• − Property taxes: −$1,441
• − Insurance: −$300
• − Repairs & maintenance: −$1,067
• − Management: −$1,067
• − Depreciation: −$1,745
• Taxable income: $4,353
• Est. tax owed @ 24.0%: −$1,045
• After-tax cash flow: $3,972/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
• 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

+90.5% since first listed

6 events — show timeline

• 2026-04-14 Listed $60,000 Greater Alabama MLS
• 2022-01-18 Price Changed $895 RENT.
• 2021-08-05 Sold (Public Records) $102,000 Public Records
• 2014-12-30 Sold (MLS) $11,998 Greater Alabama MLS
• 2014-11-17 Listed $9,900 Greater Alabama MLS
• 1991-02-19 Sold (Public Records) $31,500 Public Records

Property tax history

+7.2%/yr

Latest (2025): $1,441 · +0.0% YoY. Source: county tax records.