303 Campus St

Marshall, AR 72650

$161,500D

4 bd · 3.0 ba · 2,906 sqft · Built 1947 · SingleFamily · Under Contract · 315 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,283/mo
• Mortgage (P&I): −$847
• Tax + insurance: −$181
• HOA: −$0
• Vac / Maint / Mgmt: −$269
• Net cashflow: $-15/mo
• Annual: $-178/yr
• Cap rate: 6.18%
• Cash-on-cash: -0.39%
• DSCR: 0.98
• 1% rule: 0.79%
• Cash to close: $45,220

Investor read

• This is a 4-bed/3.0-bath single-family listed at $162k.
• At list price, monthly cash flow is $-15 ($-178/yr) — negative.
• To cash-flow at today's rent, offer at most $159k (1.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (20.6% below list).
• It's been on market 315 days — a 12% lower offer ($142k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (20.6% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($1k loan paydown + $5k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#115 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D-, amenities F, commute F.
• Searcy County School District (rural): math 39% / reading 40% proficiency, ranked #82 of 238 in AR (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Marshall Elementary School (math 64% / reading 34%, grade D, #93 of 454 statewide, top 23%, 293 students, 99% FRL); Leslie Elementary School (math 47% / reading 37%, grade D-, #78 of 201 statewide, top 40%, 190 students, 98% FRL); Marshall High School (math 28% / reading 43%, grade F, #85 of 292 statewide, top 30%, 358 students, 99% FRL) — zoned schools average 99% FRL vs 57% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 80 active listings in the ZIP.
• Searcy County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $8k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.2% vs local median 3.5% in Marshall — 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?
• It's been on market 315 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• Built in 1947 — 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 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 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?
• 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?