206 S Second St

Geneva, AL 36340

$72,000B+

3 bd · 2.0 ba · 1,280 sqft · Built 2008 · Manufactured · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,046/mo
• Mortgage (P&I): −$378
• Tax + insurance: −$120
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $329/mo
• Annual: $3,943/yr
• Cap rate: 11.77%
• Cash-on-cash: 19.56%
• DSCR: 1.87
• 1% rule: 1.45%
• Cash to close: $20,160

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $72k. Condition is rated good.
• At list price, monthly cash flow is $329 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $72k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($498 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 64/100 on livability (#168 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D, health & safety D, amenities F.
• Geneva City (town): math 27% / reading 51% proficiency, ranked #31 of 129 in AL (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mulkey Elementary School (math 30% / reading 64%, grade D-, #142 of 627 statewide, top 25%, 572 students, 65% FRL); Geneva Middle School (math 23% / reading 47%, grade F, #86 of 257 statewide, top 34%, 293 students, 57% FRL); Geneva High School (math 27% / reading 22%, grade F, #118 of 305 statewide, top 45%, 387 students, 58% FRL).
• Market conditions: 31 active listings in the ZIP; 39 units permitted in Geneva County in 2024 (0 in 5+ unit buildings).
• Geneva County population projected to shrink 9% 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 $20k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.8% vs local median 4.4% in Geneva — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.