131 W Main St

Evening Shade, AR 72532

$95,900B+

4 bd · 1.0 ba · 2,068 sqft · Built 1870 · SingleFamily · Active · 131 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,295/mo
• Mortgage (P&I): −$503
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $453/mo
• Annual: $5,441/yr
• Cap rate: 11.97%
• Cash-on-cash: 20.26%
• DSCR: 1.90
• 1% rule: 1.35%
• Cash to close: $26,852

Investor read

• This is a 4-bed/1.0-bath single-family listed at $96k.
• At list price, monthly cash flow is $453 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $96k).
• It's been on market 131 days — a 12% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (12.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($663 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 60/100 on livability (#268 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Cave City School District (rural): math 38% / reading 40% proficiency, ranked #87 of 238 in AR (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cave City Elementary School (math 39% / reading 41%, grade F, #203 of 454 statewide, top 45%, 576 students, 74% FRL); Cave City Middle School Career And Collegiate Preparatory (math 45% / reading 41%, grade D-, #70 of 201 statewide, top 38%, 288 students, 83% FRL, charter); Cave City High Career & Collegiate Preparatory School (math 27% / reading 37%, grade F, #119 of 292 statewide, top 43%, 371 students, 72% FRL, charter) — zoned schools average 76% FRL vs 60% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1870 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 22 active listings in the ZIP; 4 units permitted in Sharp County in 2024 (0 in 5+ unit buildings).
• Sharp County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $29k (23%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $10k; list at $96k implies a 859% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$30k 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 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 131 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1870 — 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.
• Schools are F-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.