3616 Gattin Rd

Benton, AR 72015

$45,000B-

3 bd · 1.0 ba · 1,284 sqft · Built 1977 · SingleFamily · Under Contract · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,620/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$340
• Net cashflow: $969/mo
• Annual: $11,626/yr
• Cap rate: 32.13%
• Cash-on-cash: 92.27%
• DSCR: 5.11
• 1% rule: 3.60%
• Cash to close: $12,600

Investor read

• This is a 3-bed/1.0-bath single-family listed at $45k.
• At list price, monthly cash flow is $969 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $45k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $311 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#119 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D, amenities F, commute F.
• Bauxite School District (rural): math 43% / reading 41% proficiency, ranked #44 of 238 in AR (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pine Haven Elementary School (math 52% / reading 37%, grade F, #143 of 454 statewide, top 36%, 750 students, 41% FRL); Bauxite Middle School (math 46% / reading 46%, grade D+, #53 of 201 statewide, top 28%, 369 students, 39% FRL); Bauxite High School (math 24% / reading 37%, grade F, #134 of 292 statewide, top 47%, 492 students, 29% FRL) — zoned schools at 36% FRL track the district average.
• Market conditions: Rents flat; 203 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 446 units permitted in Saline County in 2024 (0 in 5+ unit buildings).
• Saline County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $31k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 0.7% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 32.1% vs local median 4.4% in Benton — 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

• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.