6655 Spring St

Trussville, AL 35173

$347,515D

3 bd · 2.5 ba · 1,659 sqft · Built 2026 · SingleFamily · Pending · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,662/mo
• Mortgage (P&I): −$1,822
• Tax + insurance: −$646
• HOA: −$95
• Vac / Maint / Mgmt: −$559
• Net cashflow: $-460/mo
• Annual: $-5,524/yr
• Cap rate: 4.93%
• Cash-on-cash: -4.86%
• DSCR: 0.78
• 1% rule: 0.77%
• Cash to close: $97,304

Investor read

• This is a 3-bed/2.5-bath single-family listed at $348k. Condition is rated excellent.
• At list price, monthly cash flow is $-460 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $281k (19.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $266k (23.4% below list).
• It's been on market 38 days — a 3% lower offer ($337k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $266k (23.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k 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+, crime B+; 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.
• Zoned schools: Paine Elementary School (math 68% / reading 82%, grade A, #14 of 627 statewide, top 2%, 1,350 students, 16% FRL); Hewitttrussville Middle School (math 33% / reading 75%, grade B-, #20 of 257 statewide, top 8%, 1,202 students, 16% FRL); Hewitttrussville High School (math 50% / reading 50%, grade D+, #15 of 305 statewide, top 5%, 1,573 students, 15% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 340 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 26d 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 4.9% vs local median 3.4% in Trussville — 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

• 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 38 days. Have you received any prior offers? Is the seller open to a 23% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.