157 Beach Dr

Eclectic, AL 36024

$359,500D

3 bd · 2.0 ba · 1,254 sqft · Built 1997 · SingleFamily · Active · 234 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,612/mo
• Mortgage (P&I): −$1,885
• Tax + insurance: −$599
• HOA: −$6
• Vac / Maint / Mgmt: −$759
• Net cashflow: $363/mo
• Annual: $4,357/yr
• Cap rate: 7.50%
• Cash-on-cash: 4.33%
• DSCR: 1.19
• 1% rule: 1.00%
• Cash to close: $100,660

Investor read

• This is a 3-bed/2.0-bath single-family listed at $360k. Condition is rated good.
• At list price, monthly cash flow is $363 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $360k).
• It's been on market 234 days — a 12% lower offer ($316k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $316k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 57/100 on livability (#380 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, crime B+; Watch: amenities F, commute F, employment F.
• Elmore County (town): math 27% / reading 54% proficiency, ranked #21 of 129 in AL (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Eclectic Elementary School (math 32% / reading 57%, grade F, #171 of 627 statewide, top 31%, 665 students, 54% FRL); Eclectic Middle School (math 24% / reading 51%, grade F, #71 of 257 statewide, top 28%, 457 students, 56% FRL); Elmore County High School (math 32% / reading 47%, grade F, #34 of 305 statewide, top 12%, 516 students, 48% FRL).
• Market conditions: 82 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 92 units permitted in Elmore County in 2024 (0 in 5+ unit buildings).
• Elmore County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 2y ago; this cycle's ask has dropped $36k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $175k; list at $360k implies a 105% gain — meaningful room to come down on a strong offer.
• Cap rate 7.5% vs local median 2.6% in Eclectic — 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

• It's been on market 234 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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.
• 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.