314 2nd Ave N

Red Bay, AL 35582

$77,288B+

3 bd · 1.0 ba · 1,232 sqft · Built 1940 · SingleFamily · Pending · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,020/mo
• Mortgage (P&I): −$405
• Tax + insurance: −$129
• HOA: −$0
• Vac / Maint / Mgmt: −$214
• Net cashflow: $272/mo
• Annual: $3,263/yr
• Cap rate: 10.51%
• Cash-on-cash: 15.08%
• DSCR: 1.67
• 1% rule: 1.32%
• Cash to close: $21,641

Investor read

• This is a 3-bed/1.0-bath single-family listed at $77k. Condition is rated fair.
• At list price, monthly cash flow is $272 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $77k).
• It's been on market 77 days — a 6% lower offer ($73k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $73k (6.0% below list) — sets the bar for market timing.
• In year one you build about $527 of equity ($534 loan paydown + $-7 appreciation (-0.0% local appreciation)).
• Location reads 63/100 on livability (#194 in AL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime B; Watch: schools D, amenities F, commute F.
• Franklin County (rural): math 17% / reading 36% proficiency, ranked #84 of 129 in AL (top 65%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 24 active listings in the ZIP; 15 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• At projected returns (-0.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wind risk, 26% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 77 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Landscaping — Overgrown and needs trimming.
• Major: Fencing — Sections are missing and in poor condition.
• Major: Flooring — Worn carpet needs replacement.
• Moderate: Exterior paint — Vinyl siding shows some wear and needs touch-up or repainting.
• Moderate: Interior paint — Paint appears faded and needs touch-up or repainting.
• Minor: Roof — Metal roof appears intact and no immediate issues are visible.