105 Riverside Dr

Bessemer, AL 35023

$35,000B

2 bd · 1.0 ba · 693 sqft · Built 1948 · SingleFamily · Active · 198 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,068/mo
• Mortgage (P&I): −$184
• Tax + insurance: −$469
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $191/mo
• Annual: $2,291/yr
• Cap rate: 27.46%
• Cash-on-cash: 75.61%
• DSCR: 4.36
• 1% rule: 3.05%
• Cash to close: $9,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $35k. Condition is rated fair.
• At list price, monthly cash flow is $191 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $35k).
• It's been on market 198 days — a 12% lower offer ($31k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $31k (12.0% below list) — sets the bar for market timing.
• In year one you build about $32 of equity ($242 loan paydown + $-210 appreciation (-0.6% local appreciation)).
• Location reads 59/100 on livability (#331 in AL) — a working-class tenant base; expect higher turnover. Strengths: commute A+, cost of living A+, housing A; Watch: crime F, amenities F, employment 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: Oak Grove Elementary School (math 27% / reading 47%, grade F, #267 of 627 statewide, top 45%, 570 students, 53% FRL) — zoned schools at 53% FRL track the district average.
• Zoned-school proficiency averages 37% at this address vs 20% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Jefferson County average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $427/mo; built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.6%/yr); 295 active listings in the ZIP; 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.
• Current owner paid $10k; list at $35k implies a 250% gain — meaningful room to come down on a strong offer.
• At projected returns (-0.6% appreciation + 1.6% rent growth), your $10k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 27.5% vs local median 5.7% in Bessemer — 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 198 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is F 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?

Repairs flagged (vision-AI assessment)

• Major: Exposed wiring in kitchen — Safety hazard and potential electrical failure
• Major: Missing cabinets in kitchen — Functionality and aesthetics compromised
• Major: Worn-out flooring in bathroom — Safety hazard and potential water damage
• Major: Missing fixtures in bathroom — Functionality and aesthetics compromised
• Moderate: Weathered siding — Structural integrity and aesthetics compromised
• Moderate: Missing trim — Structural integrity and aesthetics compromised