510 Childress Dr Unit n/a

Scottsboro, AL 35769

$138,500D

2 bd · 1.0 ba · 900 sqft · Built 1970 · SingleFamily · Pending · 57 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,211/mo
• Mortgage (P&I): −$726
• Tax + insurance: −$231
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $-1/mo
• Annual: $-8/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.02%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $38,780

Investor read

• This is a 2-bed/1.0-bath single-family listed at $138k. Condition is rated good.
• At list price, monthly cash flow is $-1 ($-8/yr) — negative.
• To cash-flow at today's rent, offer at most $138k (0.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (12.6% below list).
• It's been on market 57 days — a 3% lower offer ($134k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (12.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $958 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#21 in AL, #4,752 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B+; Watch: employment D+, amenities D-, commute F.
• Scottsboro City (town): math 27% / reading 54% proficiency, ranked #27 of 129 in AL (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Caldwell Elementary School (math 27% / reading 52%, grade F, #243 of 627 statewide, top 41%, 542 students, 67% FRL); Collins Intermediate School (math 30% / reading 57%, grade D, #45 of 257 statewide, top 18%, 521 students, 61% FRL); Scottsboro High School (math 27% / reading 32%, grade F, #70 of 305 statewide, top 27%, 739 students, 50% FRL) — zoned schools average 59% FRL vs 43% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 174 active listings in the ZIP; 46 units permitted in Jackson County in 2024 (0 in 5+ unit buildings).
• Jackson County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 3.1% in Scottsboro — 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 57 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.