5224 Highway 295

Wesley, AR 72727

$119,900B

4 bd · 1.5 ba · 2,736 sqft · Built 1970 · SingleFamily · Active · 248 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,013/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$263
• HOA: −$0
• Vac / Maint / Mgmt: −$423
• Net cashflow: $699/mo
• Annual: $8,385/yr
• Cap rate: 13.29%
• Cash-on-cash: 24.98%
• DSCR: 2.11
• 1% rule: 1.68%
• Cash to close: $33,572

Investor read

• This is a 4-bed/1.5-bath single-family listed at $120k.
• At list price, monthly cash flow is $699 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• It's been on market 248 days — a 12% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (12.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($829 loan paydown + $4k appreciation (3.3% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Huntsville School District (rural): math 35% / reading 29% proficiency, ranked #141 of 238 in AR (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Huntsville Middle School (math 47% / reading 41%, grade D, #65 of 201 statewide, top 34%, 472 students, 67% FRL).
• Zoned-school proficiency averages 44% at this address vs 32% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Huntsville School District average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 131 active listings in the ZIP; solid renter incomes; 29 units permitted in Madison County in 2024 (0 in 5+ unit buildings).
• Madison County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 12y ago; this cycle's ask has dropped $80k (40%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.3% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 8→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 32% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 248 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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.
• 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.