654 Holcombe Ave · Mobile, AL 36606

$40,000

2 bd · 1.0 ba · 2,174 sqft · SingleFamily · 185 Days on market

Poor condition 7,274 sqft lot $18/sqft · 71% below area ↓ 33% since listing

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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
• Rent growth +3.8/5.0
• Livability +3.8/5.0
• Schools +2.3/10.0
• Condition / age +1.0/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This versatile property is ready for new owners. It is currently set up as a mechanic shop and offers great potential for a buyer who wants to renovate, add value, or convert it for income use. The location is minutes from shops, restaurants, and downtown, which makes it ideal for anyone looking to invest in a convenient and growing area. Bring your ideas and make this a solid addition to your portfolio. Seller willing to entertain Owner Financing offers.

Key facts

• 7,274 sq ft lot
• 6 parking spots
• Listed 185 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $40k. Condition is rated poor.

Deal economics

• At list price, monthly cash flow is $913 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.
• Cap rate 33.7% vs local median 4.9% in Mobile — 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 75/100 on livability (#20 in AL, #4,262 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools D-, crime F, employment D-.
• Mobile County (urban): math 15% / reading 39% proficiency, ranked #81 of 129 in AL (top 63%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+5.1%/yr); 174 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 45% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,678 units permitted in Mobile County in 2024 (264 in 5+ unit buildings).
• This rent runs 35% of the median local income ($51k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $277 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Mobile County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 185 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.

Recommended offer $35,200 (12.0% below list)

Questions for the listing agent

1. It's been on market 185 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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: 3.76% ✓
• Cap rate: 33.67%
• Cash-on-cash: 97.78%
• DSCR: 5.35
• GRM: 2.2

CMA / ARV

• ARV (median comp): $136,924
• List price: $40,000
• Delta: -70.79%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 9 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
707 Euclid Ave	0.14mi	3/2.0 (+1)	1,876 (-14%)	2mo	$78,000	$42	60
1811 La Salle St	0.63mi	3/1.5 (+1)	2,200 (+1%)	17mo	$172,000	$78	48
619 Cherokee St	0.31mi	3/2.0 (+1)	2,449 (+13%)	9mo	$49,000	$20	48
1814 La Salle St	0.64mi	3/2.0 (+1)	1,966 (-10%)	6mo	$37,900	$19	40
655 Rickarby St	0.37mi	3/2.0 (+1)	1,960 (-10%)	21mo	$146,500	$75	40
253 Cherokee St	0.62mi	3/2.0 (+1)	1,900 (-13%)	2mo	$189,000	$99	40
1029 Cherokee St	0.44mi	3/2.0 (+1)	1,924 (-12%)	15mo	$155,000	$81	38
2051 Old Government St	0.72mi	3/2.0 (+1)	1,950 (-10%)	10mo	$400,000	$205	32
254 Williams St	0.70mi	3/3.0 (+1)	1,906 (-12%)	12mo	$242,500	$127	23

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 · 5.06% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 5.90×
• Total profit: $54,849
• Equity at exit: $5,964

10-year hold

• IRR: —
• Equity multiple: 13.17×
• Total profit: $136,325
• Equity at exit: $3,458

Cash invested: $11,200 (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 36606

• Rents YoY: 5.1%
• Active inventory: 174
• Price-to-rent: 2.2×

Monthly cashflow live

• Estimated rent: $1,505 high
• Mortgage (P&I): −$210
• Tax est. 1.5%: −$50 /mo · $600/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$316
• Net cashflow: $913

Break-even live

Break-even rent $350

Max offer price $40,000

Occupancy floor 34%

Sensitivity live

Price	-10% $940	-5% $926	+0% $913	+5% $899	+10% $885
Rent	-10% $794	-5% $853	+0% $913	+5% $972	+10% $1,032
Rate	-1.0pp $933	-0.5pp $923	base $913	+0.5pp $902	+1.0pp $892

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Rent comps 11 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
618 Clarke St Mobile, AL	3.0	1.0	1427	$1,200	$0.84	44d	1	0.19mi
611 Dauphin Island Pkwy Mobile, AL	3.0	2.0	1450	$1,300	$0.90	44d	1	0.22mi
412 Pinehill Dr Mobile, AL	2.0	2.0	2000	$2,450	$1.23	14d	1	0.52mi
713 Iris Ave Mobile, AL	3.0	1.0	1617	$1,300	$0.80	21d	1	0.59mi
418 Durande Dr Mobile, AL	3.0	2.0	1456	$1,350	$0.93	14d	1	1.00mi
1660 Laurel St Mobile, AL	3.0	2.0	1768	$2,200	$1.24	14d	1	1.19mi
315 Hadrian St Mobile, AL	3.0	2.0	1843	$1,800	$0.98	44d	1	1.31mi
1704 McGill Ave Unit B Mobile, AL	3.0	2.5	1500	$1,750	$1.17	44d	1	1.32mi
107 Macy Pl Mobile, AL	3.0	2.0	1800	$2,250	$1.25	44d	1	1.35mi
84 S Lafayette St Unit 1043577P Mobile, AL	3.0	2.0	1496	$3,116	$2.08	14d	1	1.44mi
1204 Seneca St Mobile, AL	3.0	2.0	1425	$1,345	$0.94	14d	1	1.46mi

Listing history 19 events

1. 2026-06-18
   days on market $40,000 Active 185 DOM
2. 2026-06-17
   days on market $40,000 Active 184 DOM
3. 2026-06-16
   days on market $40,000 Active 183 DOM
4. 2026-06-15
   days on market $40,000 Active 182 DOM
5. 2026-06-14
   days on market $40,000 Active 180 DOM
6. 2026-06-13
   days on market $40,000 Active 179 DOM
7. 2026-06-10
   days on market $40,000 Active 177 DOM
8. 2026-06-09
   days on market $40,000 Active 176 DOM
9. 2026-06-08
   days on market $40,000 Active 175 DOM
10. 2026-06-07
    days on market $40,000 Active 174 DOM
11. 2026-06-05
    days on market $40,000 Active 171 DOM
12. 2026-06-03
    days on market $40,000 Active 170 DOM
13. 2026-06-02
    days on market $40,000 Active 169 DOM
14. 2026-06-01
    days on market $40,000 Active 168 DOM
15. 2026-05-31
    days on market $40,000 Active 167 DOM
16. 2026-05-30
    days on market $40,000 Active 166 DOM
17. 2026-04-17
    price $40,000 459-char remark

    Show marketing remark (459 chars)

    This versatile property is ready for new owners. It is currently set up as a mechanic shop and offers great potential for a buyer who wants to renovate, add value, or convert it for income use. The location is minutes from shops, restaurants, and downtown, which makes it ideal for anyone looking to invest in a convenient and growing area. Bring your ideas and make this a solid addition to your portfolio. Seller willing to entertain Owner Financing offers.

18. 2026-01-27
    price $45,000 459-char remark

    Show marketing remark (459 chars)

    This versatile property is ready for new owners. It is currently set up as a mechanic shop and offers great potential for a buyer who wants to renovate, add value, or convert it for income use. The location is minutes from shops, restaurants, and downtown, which makes it ideal for anyone looking to invest in a convenient and growing area. Bring your ideas and make this a solid addition to your portfolio. Seller willing to entertain Owner Financing offers.

19. 2025-12-15
    listed $60,000 Active 459-char remark

    Show marketing remark (459 chars)

    This versatile property is ready for new owners. It is currently set up as a mechanic shop and offers great potential for a buyer who wants to renovate, add value, or convert it for income use. The location is minutes from shops, restaurants, and downtown, which makes it ideal for anyone looking to invest in a convenient and growing area. Bring your ideas and make this a solid addition to your portfolio. Seller willing to entertain Owner Financing offers.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $18,061
• − Mortgage interest: −$2,241
• − Property taxes: −$600
• − Insurance: −$200
• − Repairs & maintenance: −$1,445
• − Management: −$1,445
• − Depreciation: −$1,164
• Taxable income: $10,967
• Est. tax owed @ 24.0%: −$2,632
• After-tax cash flow: $8,319/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.

Condition & rehab AI · 1 photo

Poor 20/100 Extensive rehab

This property is in poor condition and requires extensive repairs and maintenance. Immediate attention to debris removal, exterior painting, and landscaping will significantly improve its value and make it move-in ready.

Repairs flagged

• Major Debris removal — The house is surrounded by debris, indicating a major cleanup is needed.
• Major Exterior painting — The exterior suggests peeling paint and potential water damage, indicating a major repainting is needed.
• Major Roof inspection — The overall condition suggests the roof may need inspection for potential damage.
• Major Flooring replacement — The exterior suggests the flooring may need replacement.
• Major Interior repairs — The exterior suggests the interior may need significant repairs.
• Major HVAC/mechanical replacement — The exterior suggests the HVAC or mechanical systems may need replacement.
• Major Landscaping and curb appeal — The yard is overgrown and the curb appeal is low, indicating a major landscaping and curb appeal improvement is needed.

Value-add opportunities

• Both Debris removal and cleanup — This will improve the curb appeal and make the property move-in ready.
• Both Exterior painting — This will improve the curb appeal and make the property move-in ready.
• Both HVAC/mechanical replacement — This will improve the comfort and energy efficiency of the home.
• Both Landscaping and curb appeal — This will improve the curb appeal and make the property move-in ready.

Renovation cost estimate screening

Repair item	Severity	Est. cost
Debris removal · The house is surrounded by debris, indicating a major cleanup is needed.	Major	$15,000–50,000
Exterior painting · The exterior suggests peeling paint and potential water damage, indicating a major repainting is needed.	Major	$15,000–50,000
Roof inspection · The overall condition suggests the roof may need inspection for potential damage.	Major	$15,000–50,000
Flooring replacement · The exterior suggests the flooring may need replacement.	Major	$15,000–50,000
Interior repairs · The exterior suggests the interior may need significant repairs.	Major	$15,000–50,000
HVAC/mechanical replacement · The exterior suggests the HVAC or mechanical systems may need replacement.	Major	$15,000–50,000
Landscaping and curb appeal · The yard is overgrown and the curb appeal is low, indicating a major landscaping and curb appeal improvement is needed.	Major	$15,000–50,000
Total estimated repair cost · 7 items		$105,000–350,000

Value-add ROI direction

• Both Debris removal and cleanup — This will improve the curb appeal and make the property move-in ready. ↑
• Both Exterior painting — This will improve the curb appeal and make the property move-in ready. ↑
• Both HVAC/mechanical replacement — This will improve the comfort and energy efficiency of the home. ↑
• Both Landscaping and curb appeal — This will improve the curb appeal and make the property move-in ready. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Mobile County
• NCES district ID: 0102370
• Math proficiency: 15% ▼ -28.00%
• Reading proficiency: 39% ▬ 0.00%
• Median HH income: $42,455
• Composite: 22.9/100
• National rank: #8002
• State rank: #81 of 129 in AL

Livability — Mobile

• Score: 75/100
• State rank: #20
• US rank: #4262

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mobile, AL
• County: Mobile County · 246,577 people
• City population: 205,729
• Metro: Mobile, AL
• Population (ZIP): 18,728
• Household income: $51,303
• Rent vs Own: 51.3% rent · 48.7% own
• Severe rent burden: 999.0

Population outlook (Mobile County) Hauer SSP2

• Today (2025): 415,303 people
• By 2030: 411,755 · -0.9%
• By 2040: 399,670 · -3.8%
• By 2050: 382,616 · -7.9%
• By 2075: 337,353 · -18.8%
• By 2100: 283,391 · -31.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority Black (56%)
• Race & ethnicity: Black 56% White 37% Two or more races 5% Hispanic / Latino 4%
• Common ancestry: Italian 2% Scottish 2% Lithuanian 1%
• Foreign-born: 3% · Canada
• Languages at home: 96% English-only · Spanish 3%

Political lean MEDSL · Mobile

• 2024 margin: R (+16.4) · D 41.3% · R 57.7%
• 2008→2024 swing: -7.7pp toward R · 2008: -8.7pp · 2024: -16.4pp
• All cycles: 2024: R+16.4 2020: R+11.9 2016: R+13.9 2012: R+9.3 2008: R+8.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -232.19%
• Current HPI: 145.9025
• Rent YoY: ▲ 5.06%
• Metro: Mobile, AL
• 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

-33.3% since first listed

3 events — show timeline

• 2026-04-17 Price Changed $40,000 GCMLS AL
• 2026-01-27 Price Changed $45,000 GCMLS AL
• 2025-12-15 Listed $60,000 GCMLS AL