6 Rental Home Package

North Little Rock, AR 72114

$490,000B

12 bd · None ba · 7,188 sqft · Built — · MultiFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,596/mo
• Mortgage (P&I): −$2,570
• Tax + insurance: −$817
• HOA: −$0
• Vac / Maint / Mgmt: −$1,595
• Net cashflow: $2,615/mo
• Annual: $31,375/yr
• Cap rate: 12.70%
• Cash-on-cash: 22.87%
• DSCR: 2.02
• 1% rule: 1.55%
• Cash to close: $137,200

Investor read

• This is a 12-bed/?-bath multifamily listed at $490k. Condition is rated fair.
• At list price, monthly cash flow is $3k ($31k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $490k).
• It's been on market 30 days — a 2% lower offer ($483k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $483k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-2.7%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#24 in AR) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: schools D+, crime F, amenities F.
• N. Little Rock School District (urban): math 21% / reading 26% proficiency, ranked #191 of 238 in AR (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.1%/yr); 67 active listings in the ZIP; lower-income renter base — watch delinquency; 1,006 units permitted in Pulaski County in 2024 (0 in 5+ unit buildings).
• Pulaski County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-2.7% appreciation + 3.1% rent growth), your $137k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 12.7% vs local median 5.0% in North Little Rock — 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.
• At $7,596/mo this rent would consume 302% of the median local household income ($30k/yr) (locally 995% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: Driveway — Concrete driveway with significant cracks
• Major: Siding — Weathered and in poor condition