138 Edgewood Dr

Level Plains, AL 36322

$195,000C-

3 bd · 2.0 ba · 2,496 sqft · Built 1979 · SingleFamily · Active · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,626/mo
• Mortgage (P&I): −$1,023
• Tax + insurance: −$325
• HOA: −$0
• Vac / Maint / Mgmt: −$341
• Net cashflow: $-63/mo
• Annual: $-759/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• 1% rule: 0.83%
• Cash to close: $54,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $195k. Condition is rated fair.
• At list price, monthly cash flow is $-63 ($-759/yr) — negative.
• To cash-flow at today's rent, offer at most $186k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (16.6% below list).
• It's been on market 124 days — a 12% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $163k (16.6% below list) — sets the bar for 1% rule.
• In year one you build about $21k of equity ($1k loan paydown + $20k appreciation (10.0% local appreciation)).
• Location reads 55/100 on livability (#438 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety D, crime F, amenities F.
• Daleville City (town): math 9% / reading 37% proficiency, ranked #97 of 129 in AL (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: A M Windham Elementary School (math 17% / reading 37%, grade F, #392 of 627 statewide, top 65%, 499 students, 70% FRL); Daleville Middle School (math 7% / reading 39%, grade F, #176 of 257 statewide, top 70%, 361 students, 72% FRL); Daleville High School (math 2% / reading 22%, grade F, #238 of 305 statewide, top 79%, 294 students, 60% FRL).
• Market conditions: 41 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 38 units permitted in Dale County in 2024 (0 in 5+ unit buildings).
• Dale County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $55k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$34k 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.
• This rent runs 41% of the median local income ($47k/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 124 days. Have you received any prior offers? Is the seller open to a 17% 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 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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: kitchen cabinets — severely dated and worn
• Major: bathroom fixtures — dated and worn
• Major: landscaping — bare yard, no landscaping