187 Alton Lynch Cir

Huntsville, AL 35757

$58,000B

3 bd · 2.0 ba · 1,280 sqft · Built 2012 · Manufactured · Active · 147 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,788/mo
• Mortgage (P&I): −$304
• Tax + insurance: −$97
• HOA: −$445
• Vac / Maint / Mgmt: −$375
• Net cashflow: $566/mo
• Annual: $6,797/yr
• Cap rate: 18.01%
• Cash-on-cash: 41.86%
• DSCR: 2.86
• 1% rule: 3.08%
• Cash to close: $16,240

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $58k. Condition is rated average.
• At list price, monthly cash flow is $566 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $58k).
• It's been on market 147 days — a 12% lower offer ($51k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $51k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $401 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#3 in AL, #1,082 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime 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: Legacy Elementary School (math 27% / reading 62%, grade F, #171 of 627 statewide, top 31%, 631 students, 29% FRL); Monrovia Middle School (math 29% / reading 66%, grade C-, #32 of 257 statewide, top 12%, 1,003 students, 31% FRL); Sparkman High School (math 28% / reading 37%, grade F, #58 of 305 statewide, top 19%, 1,738 students, 37% FRL) — zoned schools at 32% FRL track the district average.
• Watch-outs: HOA is 25% of rent.
• Market conditions: Rents flat; 206 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• 3 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 0.7% rent growth), your $16k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 18.0% vs local median 3.8% in Huntsville — 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 147 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Carport roof — The carport roof appears to have some wear and tear.
• Minor: Kitchen cabinets — The cabinets are dated and could be replaced or updated.
• Minor: Bathroom fixtures — Standard fixtures may need updating for a more modern look.
• Minor: Exterior siding — Some discoloration on the siding may be addressed with a fresh coat of paint.
• Minor: Carport flooring — The carport flooring could be replaced with a more durable material for better curb appeal.
• Minor: Landscaping — Overgrown areas could be trimmed and landscaped to improve curb appeal.