178 Summer St

Opelika, AL 36804

$254,455F

2 bd · 2.0 ba · 1,184 sqft · Built 2026 · Townhouse · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,310/mo
• Mortgage (P&I): −$1,334
• Tax + insurance: −$424
• HOA: −$140
• Vac / Maint / Mgmt: −$275
• Net cashflow: $-864/mo
• Annual: $-10,363/yr
• Cap rate: 2.22%
• Cash-on-cash: -14.55%
• DSCR: 0.35
• 1% rule: 0.51%
• Cash to close: $71,247

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $254k. Condition is rated good.
• At list price, monthly cash flow is $-864 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $129k (49.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $131k (48.5% below list).
• It's been on market 23 days — a 2% lower offer ($251k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $129k (49.1% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#188 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime F, amenities F.
• Opelika City (urban): math 27% / reading 43% proficiency, ranked #45 of 129 in AL (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Beauregard Elementary School (math 32% / reading 61%, grade D-, #159 of 627 statewide, top 26%, 769 students, 67% FRL); Sanford Middle School (math 27% / reading 46%, grade F, #76 of 257 statewide, top 31%, 545 students, 74% FRL); Beauregard High School (math 17% / reading 12%, grade F, #220 of 305 statewide, top 77%, 555 students, 66% FRL).
• Market conditions: 540 active listings in the ZIP; 1,858 units permitted in Lee County in 2024 (113 in 5+ unit buildings).
• Lee County population projected at +54% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 2.2% vs local median 3.6% in Opelika — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.
• 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.