107 Potts Rd

Russellville, AL 35654

$38,900B-

2 bd · 1.0 ba · 960 sqft · Built 1995 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $865/mo
• Mortgage (P&I): −$204
• Tax + insurance: −$65
• HOA: −$0
• Vac / Maint / Mgmt: −$182
• Net cashflow: $414/mo
• Annual: $4,970/yr
• Cap rate: 19.07%
• Cash-on-cash: 45.63%
• DSCR: 3.03
• 1% rule: 2.22%
• Cash to close: $10,892

Investor read

• This is a 2-bed/1.0-bath single-family listed at $39k. Condition is rated poor.
• At list price, monthly cash flow is $414 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($865 rent vs $39k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $269 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#37 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Russellville City (town): math 24% / reading 41% proficiency, ranked #61 of 129 in AL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Elementary School (719 students, 42% FRL); Russellville Middle School (math 17% / reading 43%, grade F, #121 of 257 statewide, top 50%, 579 students, 51% FRL); Russellville High School (math 27% / reading 32%, grade F, #70 of 305 statewide, top 27%, 740 students, 48% FRL).
• Market conditions: 43 active listings in the ZIP; 15 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wind risk, 25% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.1% vs local median 2.9% in Russellville — 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.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage and discoloration suggest a major repair is needed.
• Major: siding — Peeling and chipping paint indicate a major repair is needed.
• Major: HVAC/mechanicals — The exterior condition suggests these systems may be in poor condition and need replacement.
• Major: landscaping — The overgrown and unkempt landscaping detracts from the property's value and needs immediate attention.