1011 N Pine

Harrison, AR 72601

$102,000D

2 bd · 1.0 ba · 820 sqft · Built — · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $758/mo
• Mortgage (P&I): −$535
• Tax + insurance: −$76
• HOA: −$0
• Vac / Maint / Mgmt: −$159
• Net cashflow: $-12/mo
• Annual: $-143/yr
• Cap rate: 6.15%
• Cash-on-cash: -0.50%
• DSCR: 0.98
• 1% rule: 0.74%
• Cash to close: $28,560

Investor read

• This is a 2-bed/1.0-bath single-family listed at $102k.
• At list price, monthly cash flow is $-12 ($-143/yr) — negative.
• To cash-flow at today's rent, offer at most $100k (2.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $76k (25.7% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $76k (25.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.9%/yr); year-one equity from $705 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#52 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Harrison School District (town): math 53% / reading 54% proficiency, ranked #11 of 238 in AR (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Skyline Heights Elem. School (math 67% / reading 52%, grade B-, #38 of 454 statewide, top 9%, 468 students, 61% FRL); Harrison Middle School (math 57% / reading 58%, grade B, #16 of 201 statewide, top 8%, 830 students, 49% FRL); Harrison High School (math 39% / reading 51%, grade D-, #27 of 292 statewide, top 10%, 868 students, 42% FRL).
• Market conditions: 443 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 92 units permitted in Boone County in 2024 (72 in 5+ unit buildings).
• Boone County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $55k; list at $102k implies a 85% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 3.0% in Harrison — 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

• 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.