494 County Road 2

Hollis Crossroads, AL 36258

$59,900B+

2 bd · 1.0 ba · 1,500 sqft · Built 2015 · Manufactured · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,030/mo
• Mortgage (P&I): −$314
• Tax + insurance: −$46
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $454/mo
• Annual: $5,452/yr
• Cap rate: 15.39%
• Cash-on-cash: 32.51%
• DSCR: 2.45
• 1% rule: 1.72%
• Cash to close: $16,772

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $60k.
• At list price, monthly cash flow is $454 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 25 days — a 2% lower offer ($59k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $59k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($414 loan paydown + $5k appreciation (8.1% local appreciation)).
• Location reads 56/100 on livability (#406 in AL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: employment C-, crime D-, amenities F.
• Cleburne County (rural): math 20% / reading 52% proficiency, ranked #42 of 129 in AL (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cleburne County Elementary School (math 32% / reading 67%, grade D, #121 of 627 statewide, top 21%, 361 students, 63% FRL); Cleburne County High School (math 18% / reading 42%, grade F, #67 of 305 statewide, top 22%, 570 students, 64% FRL) — zoned schools average 64% FRL vs 48% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 23 active listings in the ZIP; 5 units permitted in Cleburne County in 2024 (0 in 5+ unit buildings).
• Cleburne County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $5k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (8.1% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.