None

Paragould, AR 72450

$800,000F

30 bd · None ba · 13,159 sqft · Built 2000 · MultiFamily · Under Contract · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,565/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$1,333
• HOA: −$0
• Vac / Maint / Mgmt: −$329
• Net cashflow: $-4,293/mo
• Annual: $-51,511/yr
• Cap rate: -0.15%
• Cash-on-cash: -23.00%
• DSCR: -0.02
• 1% rule: 0.20%
• Cash to close: $224,000

Investor read

• This is a 30-bed/?-bath multifamily listed at $800k. Condition is rated fair.
• At list price, monthly cash flow is $-4k ($-52k/yr) — negative.
• To cash-flow at today's rent, offer at most $179k (77.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $156k (80.4% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $156k (80.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#159 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, crime F, amenities F.
• Paragould School District (town): math 35% / reading 34% proficiency, ranked #124 of 238 in AR (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 187 active listings in the ZIP; 265 units permitted in Greene County in 2024 (135 in 5+ unit buildings).
• Greene County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate -0.1% vs local median 4.5% in Paragould — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 33% of the median local income ($58k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• Crime grade is F 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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)

• Minor: Landscaping — Some areas of the lawn appear slightly overgrown
• Minor: Exterior paint — Some areas of the siding appear to have minor peeling