Adams Plan

Trussville, AL 35173

$355,000F

3 bd · 2.5 ba · 1,924 sqft · Built — · SingleFamily · Active · 149 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,675/mo
• Mortgage (P&I): −$2,156
• Tax + insurance: −$752
• HOA: −$0
• Vac / Maint / Mgmt: −$562
• Net cashflow: $-794/mo
• Annual: $-9,533/yr
• Cap rate: 4.17%
• Cash-on-cash: -7.59%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $115,104

Investor read

• This is a 3-bed/2.5-bath single-family listed at $355k. Condition is rated good.
• At list price, monthly cash flow is $-794 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $296k (16.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $267k (24.7% below list).
• It's been on market 149 days — a 12% lower offer ($312k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $267k (24.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#7 in AL, #2,110 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, schools A; Watch: commute F.
• Trussville City (suburban): math 49% / reading 74% proficiency, ranked #5 of 129 in AL (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 344 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 44% 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).
• Jefferson County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: severe flood risk; 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.
• Cap rate 4.2% vs local median 3.4% in Trussville — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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?
• It's been on market 149 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.