205 2nd St · Montgomery, AL 36110

$85,000

3 bd · 1.0 ba · 1,264 sqft · SingleFamily public records · 6 Days on market

Built 1927 7,405 sqft lot Est $57k · 49% over

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +7.3/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.7/10.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Listing remarks MLS

Investment Opportunity!! Property is tenant occupied. Rent is $ 695/ month. Accepted offer to view the home around tenant.

Key facts

• Downtown montgomery
• Major roadways
• Local schools

Tags

• CONVENIENTLY LOCATED
• LOCAL SCHOOLS
• SHOPPING
• DINING
• DOWNTOWN MONTGOMERY
• MAJOR ROADWAYS

Property features AI

Exterior

• Parking: Driveway
• Utilities: Public water; Public sewer; Cable available; Electricity available; Natural gas available
• Home design: Single family residence; One story
• Construction: Fiber cement exterior
• Exterior features: Covered porch; City lot

Interior

• Flooring: Vinyl flooring; Wood flooring
• Bathrooms: 1 full bathroom
• Heating & cooling: Central heating; Hot water heating; Natural gas heating; Central air conditioning; Electric cooling
• Interior features: Gas water heater

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $85k.

Deal economics

• At list price, monthly cash flow is $317 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• Cap rate 10.8% vs local median 6.0% in Montgomery — 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.

Location & tenants

• Location reads 65/100 on livability (#138 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools C-, employment D, crime F.
• Montgomery County (urban): math 9% / reading 31% proficiency, ranked #106 of 129 in AL (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 62 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 59% of comp listings sitting > 30 days — soft ceiling on asking rent; 460 units permitted in Montgomery County in 2024 (37 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Montgomery County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• 5 sale attempts since 29y 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.
• Current owner paid $37k; list at $85k implies a 128% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wind risk, 80% 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.

Recommended offer $85,000

Questions for the listing agent

1. Built in 1927 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 1.23% ✓
• Cap rate: 10.77%
• Cash-on-cash: 15.99%
• DSCR: 1.71
• GRM: 6.8

CMA / ARV

• ARV (on-the-fly): $56,880
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
225 2nd St	0.11mi	3/1.0	1,415 (+12%)	1mo	$55,000	$39	74
525 5th St	0.21mi	4/2.0 (+1)	1,344 (+6%)	7mo	$110,000	$82	65
3061 Alta Rd	0.28mi	3/1.0	1,404 (+11%)	5mo	$45,000	$32	64
428 Conrad St	0.42mi	3/1.5	1,352 (+7%)	5mo	$85,000	$63	62
2930 Milton Rd	0.33mi	3/2.0	1,186 (-6%)	10mo	$53,000	$45	62
715 7th St	0.28mi	2/1.0 (-1)	1,136 (-10%)	4mo	$31,000	$27	61
548 Conrad St	0.50mi	3/2.0	1,352 (+7%)	4mo	$77,000	$57	58
345 Milton Rd	0.59mi	4/1.0 (+1)	1,350 (+7%)	0mo	$49,900	$37	56
114 Rotary St	0.56mi	3/1.0	1,132 (-10%)	2mo	$25,000	$22	55
960 N Gap Loop	0.46mi	3/1.5	1,114 (-12%)	6mo	$40,000	$36	52
231 Shelly Ct	0.73mi	3/1.0	1,200 (-5%)	9mo	$59,000	$49	50
815 N Gap Loop	0.59mi	3/2.0	1,110 (-12%)	4mo	$59,000	$53	45

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 6.9%
• Equity multiple: 1.27×
• Total profit: $6,389
• Equity at exit: $12,674

10-year hold

• IRR: 16.2%
• Equity multiple: 2.32×
• Total profit: $31,437
• Equity at exit: $7,349

Cash invested: $23,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Alabama: 90 Strongly Landlord-Friendly · R+15
• County: — inherits STATE
• City: — inherits STATE

Right-to-evict in 7 days for non-payment; no rent control; preempted statewide; courts move quickly.

Methodology + full state rankings →

ZIP-level market 36110

• Home prices YoY: -34.8%
• Active inventory: 62
• Price-to-rent: 6.8×

Monthly cashflow live

• Estimated rent: $1,047 high
• Mortgage (P&I): −$446
• Tax from tax record: −$29 /mo · $347/yr
• Insurance: −$35
• HOA: −$0
• Vacancy / Maint / Mgmt: −$220
• Net cashflow: $317

Break-even live

Break-even rent $646

Max offer price $85,000

Occupancy floor 65%

Sensitivity live

Price	-10% $365	-5% $341	+0% $317	+5% $293	+10% $269
Rent	-10% $234	-5% $276	+0% $317	+5% $358	+10% $400
Rate	-1.0pp $360	-0.5pp $339	base $317	+0.5pp $295	+1.0pp $273

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $21,250
• Closing costs: $2,550
• Reserves months: —
• Total cash needed: —

Rent comps 22 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3024 Tyler Rd Montgomery, AL	3.0	1.0	892	$725	$0.81	21d	1	0.16mi
325 3rd St Montgomery, AL	2.0	1.0	925	$850	$0.92	44d	1	0.18mi
3070 Tremont St Montgomery, AL	3.0	1.0	1102	$1,450	$1.32	44d	1	0.31mi
622 6th St Montgomery, AL	3.0	1.0	1207	$1,095	$0.91	44d	1	0.32mi
3 Rotary St Montgomery, AL	3.0	1.0	1131	$925	$0.82	21d	1	0.51mi
105 Dyas Ct Montgomery, AL	3.0	1.0	1025	$1,095	$1.07	44d	1	0.65mi
16 Garden St Montgomery, AL	3.0	1.5	1008	$775	$0.77	45d	1	0.75mi
4029 Chelsea Dr Montgomery, AL	3.0	1.0	1000	$1,200	$1.20	44d	1	0.79mi
216 Gardendale Dr Montgomery, AL	3.0	1.0	900	$850	$0.94	21d	1	0.87mi
204 W Park Ave Montgomery, AL	3.0	1.0	1145	$850	$0.74	21d	1	0.89mi
207 Destin St Montgomery, AL	3.0	1.0	966	$695	$0.72	21d	1	0.96mi
408 Briarbrook Dr Montgomery, AL	3.0	2.0	1025	$960	$0.94	21d	1	1.01mi
408 Briarbrook Dr #204 Montgomery, AL	3.0	2.0	1025	$1,000	$0.98	44d	1	1.01mi
218 Broadway St Montgomery, AL	2.0	1.0	960	$895	$0.93	14d	1	1.01mi
298 Broadway St Montgomery, AL	2.0	1.0	896	$900	$1.00	44d	1	1.03mi
3452 Harris St Montgomery, AL	3.0	1.0	1400	$1,150	$0.82	21d	1	1.12mi
3613 Erwin Dr Montgomery, AL	3.0	2.0	1092	$1,250	$1.14	44d	1	1.15mi
3329 Texas St Montgomery, AL	3.0	1.0	1000	$1,100	$1.10	44d	1	1.23mi
1653 N Yarbrough Ct Montgomery, AL	3.0	1.0	1130	$950	$0.84	21d	1	1.29mi
2107 Yarbrough Cir Montgomery, AL	3.0	1.0	910	$925	$1.02	44d	1	1.31mi
2111 Yarbrough St Montgomery, AL	3.0	1.0	962	$795	$0.83	44d	1	1.34mi
3114 Cotton St Montgomery, AL	3.0	1.0	888	$1,100	$1.24	44d	1	1.44mi

Listing history 6 events

1. 2026-06-18
   days on market $85,000 Active 6 DOM
2. 2026-06-17
   days on market $85,000 Active 5 DOM
3. 2026-06-16
   days on market $85,000 Active 4 DOM
4. 2026-06-15
   days on market $85,000 Active 3 DOM
5. 2026-06-13
   remarks 609-char remark
6. 2026-06-13
   listed $85,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast AL · Resets to sale price

• Current annual tax: $347 · $29/mo
• Projected year-2 tax: $349 · $29/mo
• Expected delta: +$1/yr ($0/mo · 0.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 7/10 Severe 7 d/yr ≥107°F today · 20 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,565
• − Mortgage interest: −$4,761
• − Property taxes: −$347
• − Insurance: −$425
• − Repairs & maintenance: −$1,005
• − Management: −$1,005
• − Depreciation: −$2,473
• Taxable income: $2,548
• Est. tax owed @ 24.0%: −$612
• After-tax cash flow: $3,193/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Montgomery County
• NCES district ID: 0102430
• Math proficiency: 9% ▼ -21.00%
• Reading proficiency: 31% ▼ -1.00%
• Median HH income: $43,902
• Composite: 17.24/100
• National rank: #9093
• State rank: #106 of 129 in AL

Livability — Montgomery

• Score: 65/100
• State rank: #138
• US rank: #13416

Category grades

Amenities D- Commute F Cost of living A+ Crime F Employment D Housing A+ Health & safety F User ratings D+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, AL
• County: Montgomery County · 190,016 people
• City population: 175,913
• Metro: Montgomery, AL
• Population (ZIP): 12,102
• Household income: $47,315
• Rent vs Own: 50.0% rent · 50.0% own
• Severe rent burden: 753.0

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 224,008 people
• By 2030: 221,460 · -1.1%
• By 2040: 214,179 · -4.4%
• By 2050: 204,912 · -8.5%
• By 2075: 177,821 · -20.6%
• By 2100: 145,134 · -35.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (83%)
• Race & ethnicity: Black 83% White 11% Two or more races 3% Asian 2% Hispanic / Latino 1%
• Common ancestry: Hispanic 1%
• Foreign-born: 2% · China, Canada
• Languages at home: 96% English-only · Spanish 2% Other Asian/Pacific 1%

Political lean MEDSL · Montgomery

• 2024 margin: Solid D (+30.7) · D 64.8% · R 34.1% · Other 1.1%
• 2008→2024 swing: +11.5pp toward D · 2008: 19.2pp · 2024: 30.7pp
• All cycles: 2024: D+30.7 2020: D+31.5 2016: D+26.2 2012: D+24.3 2008: D+19.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -35.37%
• Current HPI: 66.3114
• Rent YoY: —
• Metro: Montgomery, AL
• State GDP YoY: ▲ 2.94%
• F500 in state: 4

Industry mix (Fortune 500 HQ in AL)

Industry	F500 HQs	Revenue
▸Financial Services	1	$8B
▸Healthcare	1	$5B

Price history

+113.0% since first listed

10 events — show timeline

• 2026-06-12 Listed $85,000 WBR
• 2023-02-02 Sold (MLS) $37,358 MAAR
• 2023-02-01 Pending — MAAR
• 2023-01-12 Contingent — MAAR
• 2022-10-24 Listed $48,000 MAAR
• 2008-01-18 Sold (Public Records) $68,500 Public Records
• 2001-07-17 Listed $55,000 MAAR
• 1999-07-02 Listed $50,900 MAAR
• 1997-08-26 Sold (MLS) $41,900 MAAR
• 1997-03-31 Listed $39,900 MAAR

Property tax history

+0.7%/yr

Latest (2025): $347 · +0.0% YoY. Source: county tax records.