111 Bob Smith Rd

Remlap, AL 35133

$324,995D

4 bd · 1.0 ba · 3,007 sqft · Built 1996 · SingleFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,559/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$218
• HOA: −$0
• Vac / Maint / Mgmt: −$327
• Net cashflow: $-690/mo
• Annual: $-8,284/yr
• Cap rate: 3.74%
• Cash-on-cash: -9.10%
• DSCR: 0.59
• 1% rule: 0.48%
• Cash to close: $90,999

Investor read

• This is a 4-bed/1.0-bath single-family listed at $325k.
• At list price, monthly cash flow is $-690 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $203k (37.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $156k (52.0% below list).
• It's been on market 26 days — a 2% lower offer ($320k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $156k (52.0% below list) — sets the bar for 1% rule.
• In year one you build about $35k of equity ($2k loan paydown + $32k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Blount County (rural): math 20% / reading 45% proficiency, ranked #54 of 129 in AL (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hayden Middle School (math 28% / reading 51%, grade F, #61 of 257 statewide, top 24%, 550 students, 44% FRL) — zoned schools at 44% FRL track the district average.
• Market conditions: 32 active listings in the ZIP; 13 units permitted in Blount County in 2024 (0 in 5+ unit buildings).
• Blount County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $222k; 46% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$56k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 6→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.