3134 County Road 1435

Cullman, AL 35179

$123,000B

3 bd · 2.0 ba · 1,248 sqft · Built 1921 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,749/mo
• Mortgage (P&I): −$645
• Tax + insurance: −$205
• HOA: −$0
• Vac / Maint / Mgmt: −$367
• Net cashflow: $532/mo
• Annual: $6,384/yr
• Cap rate: 11.48%
• Cash-on-cash: 18.54%
• DSCR: 1.82
• 1% rule: 1.42%
• Cash to close: $34,440

Investor read

• This is a 3-bed/2.0-bath single-family listed at $123k.
• At list price, monthly cash flow is $532 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $123k).
• It's been on market 23 days — a 2% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (1.5% below list) — sets the bar for market timing.
• In year one you build about $999 of equity ($850 loan paydown + $149 appreciation (0.1% local appreciation)).
• Location reads 71/100 on livability (#36 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities C-, commute F, health & safety F.
• Cullman County (rural): math 19% / reading 49% proficiency, ranked #49 of 129 in AL (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Vinemont Elementary School (math 29% / reading 58%, grade F, #202 of 627 statewide, top 32%, 483 students, 68% FRL); Vinemont Middle School (math 12% / reading 46%, grade F, #134 of 257 statewide, top 53%, 237 students, 63% FRL); Vinemont High School (math 27% / reading 17%, grade F, #142 of 305 statewide, top 51%, 362 students, 58% FRL).
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 80 active listings in the ZIP; 180 units permitted in Cullman County in 2024 (0 in 5+ unit buildings).
• At projected returns (0.1% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.5% vs local median 3.8% in Cullman — 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

• Built in 1921 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.