2006 27th Ave

Hueytown, AL 35023

$40,000B

2 bd · 1.0 ba · 786 sqft · Built 1952 · SingleFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,089/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$74
• HOA: −$0
• Vac / Maint / Mgmt: −$229
• Net cashflow: $577/mo
• Annual: $6,925/yr
• Cap rate: 23.61%
• Cash-on-cash: 61.83%
• DSCR: 3.75
• 1% rule: 2.72%
• Cash to close: $11,200

Investor read

• This is a 2-bed/1.0-bath single-family listed at $40k. Condition is rated poor.
• At list price, monthly cash flow is $577 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 44 days — a 3% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $39k (3.0% below list) — sets the bar for market timing.
• In year one you build about $37 of equity ($277 loan paydown + $-240 appreciation (-0.6% local appreciation)).
• Location reads 57/100 on livability (#378 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D, crime F, amenities 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: Hueytown Primary School (653 students, 64% FRL); Hueytown Middle School (math 0% / reading 30%, grade F, #206 of 257 statewide, top 80%, 789 students, 62% FRL); Hueytown High School (math 7% / reading 20%, grade F, #235 of 305 statewide, top 77%, 1,210 students, 79% FRL) — zoned schools average 68% FRL vs 49% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.6%/yr); 345 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals lingering (median 119d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 82% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• At projected returns (-0.6% appreciation + 1.6% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 41% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.6% vs local median 6.0% in Hueytown — 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 44 days. Have you received any prior offers? Is the seller open to a 3% 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 1952 — 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 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?
• 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: roof — Significant damage or wear
• Major: exterior siding — Severe weathering and peeling
• Major: interior walls — Severe paint damage and potential structural issues
• Major: flooring — Worn and possibly damaged hardwood
• Major: HVAC unit — Exposed and possibly in need of replacement
• Major: landscaping — Overgrown and unkempt yard