508 Covington Ave · Opp, AL 36467

$39,000

3 bd · 1.0 ba · 1,344 sqft · SingleFamily public records · 13 Days on market

Built 1950 8,712 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 +3.3/5.0
• Schools +3.1/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Check out this investment opportunity!Disclaimer- This is a tax deed property. Cash offers only. No title insurance available.

Key facts

• 8,712 sq ft lot
• Built 1950
• Listed 12 days

Property features AI

Finance

• Other: Square footage reported per tax report

Exterior

• Parking: Driveway parking
• Security: No security features listed
• Utilities: Public water; Septic system; Internet service availability unknown
• Home design: Existing property; Single-story living areas (rooms listed at level 1)
• Construction: Siding (other) exterior; Crawl space foundation; Approximately 0.2 acres
• Exterior features: No waterfront; No pool; No patio; No garden/patio; No decks

Interior

• Kitchen: Laminate countertops
• Bedrooms: Three bedrooms on the main level
• Flooring: Vinyl flooring
• Bathrooms: One full bathroom on the main level
• Heating & cooling: No heat; No air conditioning
• Interior features: Ceilings noted as other (see remarks); No additional interior features listed
• Laundry & utility: No laundry or utility appliances listed

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $39k.

Deal economics

• At list price, monthly cash flow is $525 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• Cap rate 22.4% vs local median 3.9% in Opp — 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 66/100 on livability (#107 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities F, commute F, employment F.
• Opp City (town): math 26% / reading 50% proficiency, ranked #37 of 129 in AL (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Opp High School (math 22% / reading 17%, grade F, #169 of 305 statewide, top 59%, 393 students, 62% FRL).
• Zoned-school proficiency averages 20% at this address vs 38% district-wide (-18 pts) — the specific schools serving this property underperform the Opp City average; the district grade overstates school quality for this exact location.
• Market conditions: 64 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 13 units permitted in Covington County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $270 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Covington County population projected to shrink 10% 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 13 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wind risk, 99% 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 $39,000

Questions for the listing agent

1. Built in 1950 — 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 D-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. 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.
5. 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.
6. 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: 2.56% ✓
• Cap rate: 22.44%
• Cash-on-cash: 57.66%
• DSCR: 3.57
• GRM: 3.2

CMA / ARV

• ARV (on-the-fly): $122,304
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1003 Maude Ave	0.38mi	3/2.0	1,300 (-3%)	6mo	$55,000	$42	68
402 North Jackson St	0.52mi	3/1.0	1,350 (+0%)	12mo	$135,000	$100	65
606 Charlie St	0.63mi	3/1.0	1,375 (+2%)	6mo	$68,000	$49	62
709 10th St	0.54mi	3/2.0	1,276 (-5%)	1mo	$77,000	$60	62
504 Seventh St	0.34mi	3/2.0	1,484 (+10%)	3mo	$85,000	$57	61
809 10th St	0.56mi	3/1.0	1,421 (+6%)	5mo	$130,000	$91	60
504 Brown St	0.58mi	3/1.0	1,333 (-1%)	15mo	$130,000	$98	59
601 Virginia Ave	0.35mi	3/1.0	1,448 (+8%)	14mo	$93,000	$64	59
605 Opine Rd	0.72mi	3/2.0	1,334 (-1%)	7mo	$220,000	$165	55
102 South Jackson St	0.34mi	2/1.0 (-1)	1,516 (+13%)	10mo	$105,000	$69	49
308 West St	0.38mi	3/2.0	1,512 (+12%)	13mo	$145,000	$96	46
239 West Gunter Ave	0.71mi	3/2.0	1,471 (+9%)	13mo	$214,995	$146	36

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: 56.2%
• Equity multiple: 3.48×
• Total profit: $27,112
• Equity at exit: $5,815

10-year hold

• IRR: 61.2%
• Equity multiple: 7.11×
• Total profit: $66,691
• Equity at exit: $3,372

Cash invested: $10,920 (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 36467

• Home prices YoY: -20.9%
• Active inventory: 64
• Price-to-rent: 3.2×

Monthly cashflow live

• Estimated rent: $1,000 medium
• Mortgage (P&I): −$205
• Tax from tax record: −$45 /mo · $534/yr
• Insurance: −$16
• HOA: −$0
• Vacancy / Maint / Mgmt: −$210
• Net cashflow: $525

Break-even live

Break-even rent $336

Max offer price $39,000

Occupancy floor 43%

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: $9,750
• Closing costs: $1,170
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
203 Paul St Opp, AL	3.0	2.0	1428	$1,000	$0.70	43d	1	0.32mi

Listing history 11 events

1. 2026-06-19
   days on market $39,000 Active 13 DOM
2. 2026-06-18
   days on market $39,000 Active 12 DOM
3. 2026-06-17
   days on market $39,000 Active 11 DOM
4. 2026-06-16
   days on market $39,000 Active 10 DOM
5. 2026-06-15
   days on market $39,000 Active 9 DOM
6. 2026-06-14
   days on market $39,000 Active 7 DOM
7. 2026-06-12
   days on market $39,000 Active 6 DOM
8. 2026-06-09
   days on market $39,000 Active 3 DOM
9. 2026-06-08
   days on market $39,000 Active 2 DOM
10. 2026-06-07
    remarks 126-char remark
11. 2026-06-07
    listed $39,000 Active 1 DOM

ⓘ 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: $534 · $45/mo
• Projected year-2 tax: $534 · $45/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 3/10 Moderate
• 🌡 Heat 8/10 Severe 7 d/yr ≥106°F today · 19 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,000
• − Mortgage interest: −$2,185
• − Property taxes: −$534
• − Insurance: −$195
• − Repairs & maintenance: −$960
• − Management: −$960
• − Depreciation: −$1,135
• Taxable income: $6,032
• Est. tax owed @ 24.0%: −$1,448
• After-tax cash flow: $4,849/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: Opp City
• NCES district ID: 0102610
• Math proficiency: 26% ▼ -19.00%
• Reading proficiency: 50% ▲ 5.00%
• Median HH income: $32,756
• Composite: 31.09/100
• National rank: #6073
• State rank: #37 of 129 in AL

Livability — Opp

• Score: 66/100
• State rank: #107
• US rank: #11901

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Opp, AL
• City population: 9,847
• Population (ZIP): 9,847

Population outlook (Covington County) Hauer SSP2

• Today (2025): 37,007 people
• By 2030: 36,401 · -1.6%
• By 2040: 34,983 · -5.5%
• By 2050: 33,437 · -9.6%
• By 2075: 29,753 · -19.6%
• By 2100: 25,109 · -32.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Black 12% Two or more races 4%
• Common ancestry: Serbian 1% Italian 1% Slovak 1%
• Foreign-born: 1% · South Korea
• Languages at home: 99% English-only · Spanish 1%

Political lean MEDSL · Covington

• 2024 margin: Solid R (+72.4) · D 13.6% · R 86.0%
• 2008→2024 swing: -14.1pp toward R · 2008: -58.3pp · 2024: -72.4pp
• All cycles: 2024: R+72.4 2020: R+68.1 2016: R+68.5 2012: R+58.3 2008: R+58.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -39.82%
• Current HPI: 151.1871
• 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

1 event — show timeline

• 2026-06-06 Listed $39,000 Greater Alabama MLS

Property tax history

+9.3%/yr

Latest (2025): $534 · +6.9% YoY. Source: county tax records.