21248 Seminole St

Lockhart, AL 36442

$139,900C-

3 bd · 1.0 ba · 2,176 sqft · Built 1910 · SingleFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,176/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$233
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $-38/mo
• Annual: $-453/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.16%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $39,172

Investor read

• This is a 3-bed/1.0-bath single-family listed at $140k. Condition is rated fair.
• At list price, monthly cash flow is $-38 ($-453/yr) — negative.
• To cash-flow at today's rent, offer at most $134k (3.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $118k (15.9% below list).
• It's been on market 55 days — a 3% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (15.9% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($967 loan paydown + $6k appreciation (4.0% local appreciation)).
• Location reads 63/100 on livability (#183 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Covington County (rural): math 27% / reading 50% proficiency, ranked #32 of 129 in AL (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ws Harlan Elementary School (math 32% / reading 52%, grade F, #213 of 627 statewide, top 37%, 331 students, 72% FRL); Straughn Middle School (math 35% / reading 62%, grade C-, #28 of 257 statewide, top 11%, 318 students, 65% FRL); Florala High School (math 17% / reading 37%, grade F, #90 of 305 statewide, top 35%, 218 students, 74% FRL) — zoned schools average 70% FRL vs 52% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 61 active listings in the ZIP; 13 units permitted in Covington County in 2024 (0 in 5+ unit buildings).
• Covington County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (4.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 55 days. Have you received any prior offers? Is the seller open to a 16% 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 1910 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Peeling wallpaper — Significant damage to interior walls
• Moderate: Exterior siding — Weathered appearance