5508 Lybia Ave · McDonald Chapel, AL 35224

$39,900

3 bd · 1.0 ba · 1,634 sqft · SingleFamily public records · 6 Days on market

Built 1930 7,492 sqft lot

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +2.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.8/10.0
• Appreciation +0.0/10.0

Listing remarks

This sale includes 3 lots, 5508, 5504, and 5500!!! Attention investors and DIY enthusiasts! Multiple exit strategies: finish this remodel then either flip, rent or move in! Home being sold as is. Cash preferred but will consider financed all offers.

Key facts

• 7,492 sq ft lot
• Built 1930
• Listed 6 days

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $631 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).

Location & tenants

• Location reads 58/100 on livability (#365 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: commute D, crime D-, amenities F.
• Jefferson County (suburban): math 9% / reading 32% proficiency, ranked #104 of 129 in AL (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Minor Community School (math 2% / reading 17%, grade F, #568 of 627 statewide, top 94%, 409 students, 84% FRL); Minor High School (math 4% / reading 8%, grade F, #275 of 305 statewide, top 90%, 915 students, 84% FRL) — zoned schools average 84% FRL vs 49% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 8% at this address vs 20% district-wide (-13 pts) — the specific schools serving this property underperform the Jefferson County average; the district grade overstates school quality for this exact location.
• Market conditions: 42 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 2,114 units permitted in Jefferson County in 2024 (556 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k 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 + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $14k; list at $40k implies a 185% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major wind risk, 27% 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.

Recommended offer $39,900

Questions for the listing agent

1. Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. Crime grade is D 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?
5. 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.
6. 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.
7. 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: 2.91% ✓
• Cap rate: 25.28%
• Cash-on-cash: 67.80%
• DSCR: 4.02
• GRM: 2.9

CMA / ARV

• ARV (on-the-fly): $186,276
• Comps found: 7

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1024 Xavier St	0.41mi	3/2.0	1,666 (+2%)	12mo	$140,000	$84	63
5113 Iceland Ct	0.37mi	3/2.0	1,560 (-4%)	13mo	$177,400	$114	61
1008 Utica Pl	0.28mi	3/3.0	1,607 (-2%)	20mo	$50,000	$31	59
1221 Xavier St	0.35mi	4/3.0 (+1)	1,693 (+4%)	9mo	$227,000	$134	57
1217 Xavier St	0.34mi	3/3.0	1,507 (-8%)	12mo	$220,000	$146	53
785 Mcdonald Chapel Rd	0.57mi	3/2.0	1,724 (+6%)	11mo	$35,000	$20	51
1113 Xavier St	0.36mi	3/2.0	1,460 (-11%)	14mo	$195,000	$134	50

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 67.2%
• Equity multiple: 4.02×
• Total profit: $33,761
• Equity at exit: $5,949

10-year hold

• IRR: 71.4%
• Equity multiple: 8.27×
• Total profit: $81,261
• Equity at exit: $3,450

Cash invested: $11,172 (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 35224

• Home prices YoY: -16.2%
• Active inventory: 42
• Price-to-rent: 2.9×

Monthly cashflow live

• Estimated rent: $1,160 high
• Mortgage (P&I): −$209
• Tax from tax record: −$59 /mo · $709/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$244
• Net cashflow: $631

Break-even live

Break-even rent $361

Max offer price $39,900

Occupancy floor 41%

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: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Rent comps 11 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
5320 Java Ave Birmingham, AL	3.0	1.0	1950	$1,100	$0.56	44d	1	0.18mi
5804 Norway Ave Birmingham, AL	2.0	2.0	1564	$1,200	$0.77	24d	1	0.31mi
4800 Norway Ave Birmingham, AL	3.0	1.0	1080	$1,200	$1.11	2d	1	0.62mi
960 Minor Dr Birmingham, AL	3.0	1.5	1299	$1,295	$1.00	24d	1	0.78mi
304 Nevada St Birmingham, AL	3.0	1.0	1160	$1,200	$1.03	44d	1	1.05mi
1050 McDonald Chapel Rd Birmingham, AL	3.0	1.5	1454	$1,250	$0.86	24d	1	1.10mi
5223 Loop Rd Birmingham, AL	3.0	1.0	1392	$1,100	$0.79	44d	1	1.16mi
528 Oregon St Birmingham, AL	3.0	1.0	1165	$1,200	$1.03	44d	1	1.21mi
761 Crowne Rd Birmingham, AL	3.0	2.0	1068	$1,200	$1.12	2d	1	1.36mi
4623 6th Ave Birmingham, AL	3.0	1.0	1421	$1,175	$0.83	12d	1	1.38mi
504 Templeton Rd Birmingham, AL	3.0	2.0	1508	$950	$0.63	3d	1	1.50mi

Listing history 4 events

1. 2026-01-09
   soldstatus $14,000
2. 2025-11-19
   status Pending
3. 2025-11-18
   price $39,900
4. 2025-11-13
   listed $49,900 Active

ⓘ 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: $709 · $59/mo
• Projected year-2 tax: $709 · $59/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 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥107°F today · 19 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 27% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,917
• − Mortgage interest: −$2,235
• − Property taxes: −$709
• − Insurance: −$200
• − Repairs & maintenance: −$1,113
• − Management: −$1,113
• − Depreciation: −$1,161
• Taxable income: $7,386
• Est. tax owed @ 24.0%: −$1,773
• After-tax cash flow: $5,802/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: Jefferson County
• NCES district ID: 0101920
• Math proficiency: 9% ▼ -24.00%
• Reading proficiency: 32% ▼ -5.00%
• Median HH income: $51,712
• Composite: 18.4/100
• National rank: #8937
• State rank: #104 of 129 in AL

Livability — McDonald Chapel

• Score: 58/100
• State rank: #365
• US rank: #21203

Category grades

Amenities F Commute D Cost of living A+ Crime D- Employment F Housing A+ Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: McDonald Chapel, AL
• Population (ZIP): 5,409

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 (69%)
• Race & ethnicity: Black 69% White 22% Two or more races 5% Hispanic / Latino 3% Native American 1%
• Common ancestry: Slovak 0%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 3%

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: ▼ -24.47%
• Current HPI: 126.3423
• Rent YoY: —
• Metro: —
• 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

-71.9% since first listed

4 events — show timeline

• 2026-01-09 Sold (Public Records) $14,000 Public Records
• 2025-11-19 Pending — Greater Alabama MLS
• 2025-11-18 Price Changed $39,900 Greater Alabama MLS
• 2025-11-13 Listed $49,900 Greater Alabama MLS

Property tax history

+0.0%/yr

Latest (2025): $709 · +0.0% YoY. Source: county tax records.