3 bd · 1.0 ba ·
1,178 sqft ·
Built 1998
· SingleFamily
· Active
· 67 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,658/mo
Mortgage (P&I)
−$1,020
Tax + insurance
−$324
HOA
−$0
Vac / Maint / Mgmt
−$348
Net cashflow
$-34/mo
Annual
$-408/yr
Cap rate
6.08%
Cash-on-cash
-0.75%
DSCR
0.97
1% rule
0.85%
Cash to close
$54,460
Investor read
This is a 3-bed/1.0-bath single-family listed at $194k.
At list price, monthly cash flow is $-34 ($-408/yr) — negative.
To cash-flow at today's rent, offer at most $190k (2.5% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $166k (14.7% below list).
It's been on market 67 days — a 6% lower offer ($183k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $166k (14.7% below list) — sets the bar for 1% rule.
Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
Location reads 66/100 on livability (#109 in AL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety F.
Madison County (rural): math 27% / reading 56% proficiency, ranked #19 of 129 in AL (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: Mt Carmel Elementary School (math 37% / reading 72%, grade C, #87 of 627 statewide, top 15%, 646 students, 34% FRL); Riverton Intermediate School (math 25% / reading 63%, grade D, #42 of 257 statewide, top 17%, 813 students, 36% FRL); Buckhorn High School (math 31% / reading 33%, grade F, #59 of 305 statewide, top 21%, 1,287 students, 34% FRL).
Market conditions: Rents soft (-0.1%/yr); 337 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 4,709 units permitted in Madison County in 2024 (1,186 in 5+ unit buildings).
Madison County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 6.1% vs local median 3.8% in Moores Mill — 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.
This rent runs 39% of the median local income ($51k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
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 67 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
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 F-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.
CashFlowRE · CFR-SMY79RDBGT8SD5
· Data 1 week agocashflowre.app · 2026-05-29