5 Rental Home Package

North Little Rock, AR 72114

$355,000F

10 bd · None ba · 7,188 sqft · Built — · MultiFamily · Active · 170 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,925/mo
• Mortgage (P&I): −$1,862
• Tax + insurance: −$592
• HOA: −$0
• Vac / Maint / Mgmt: −$404
• Net cashflow: $-933/mo
• Annual: $-11,195/yr
• Cap rate: 3.14%
• Cash-on-cash: -11.26%
• DSCR: 0.50
• 1% rule: 0.54%
• Cash to close: $99,400

Investor read

• This is a 10-bed/?-bath multifamily listed at $355k. Condition is rated fair.
• At list price, monthly cash flow is $-933 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $220k (38.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $192k (45.8% below list).
• It's been on market 170 days — a 12% lower offer ($312k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $192k (45.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.7%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k 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: crime F, amenities F, employment D-.
• 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.
• Zoned schools: Seventh Street Elem. School (math 2% / reading 2%, grade F, #452 of 454 statewide, top 100%, 351 students, 100% FRL); Lakewood Middle School (math 23% / reading 32%, grade F, #155 of 201 statewide, top 77%, 1,115 students, 100% FRL); North Little Rock High School (math 12% / reading 26%, grade F, #248 of 292 statewide, top 86%, 1,949 students, 100% FRL) — zoned schools average 100% FRL vs 66% district-wide (33 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.1%/yr); 138 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.
• Cap rate 3.1% vs local median 5.3% in North Little Rock — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $1,925/mo this rent would consume 77% of the median local household income ($30k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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?
• It's been on market 170 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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?

Repairs flagged (vision-AI assessment)

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