1500 Center St

Little Rock, AR 72206

$1,199,000F

126 bd · 108.0 ba · 6,692 sqft · Built 1921 · MultiFamily · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,856/mo
• Mortgage (P&I): −$6,288
• Tax + insurance: −$1,998
• HOA: −$0
• Vac / Maint / Mgmt: −$1,860
• Net cashflow: $-1,290/mo
• Annual: $-15,477/yr
• Cap rate: 5.00%
• Cash-on-cash: -4.61%
• DSCR: 0.79
• 1% rule: 0.74%
• Cash to close: $335,720

Investor read

• This is a 9 × 1-bed/1-bath units multifamily listed at $1.20M. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative. Per door: $-143/mo.
• To cash-flow at today's rent, offer at most $1.01M (15.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $886k (26.1% below list).
• It's been on market 87 days — a 6% lower offer ($1.13M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $886k (26.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $36k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#22 in AR) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F.
• Little Rock School District (urban): math 23% / reading 26% proficiency, ranked #183 of 238 in AR (top 77%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: M.L. King Elementary School (math 2% / reading 2%, grade F, #452 of 454 statewide, top 100%, 341 students, 86% FRL); Dunbar Magnet Middle School (math 6% / reading 13%, grade F, #196 of 201 statewide, top 98%, 320 students, 90% FRL); Central High School (math 32% / reading 42%, grade F, #64 of 292 statewide, top 26%, 2,338 students, 53% FRL).
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 126 active listings in the ZIP; 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.
• 4 sale attempts since 2y 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.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.0% vs local median 4.1% in Little Rock — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $8,856/mo this rent would consume 204% of the median local household income ($52k/yr) (locally 623% of renters already pay >50% of income on rent) — 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 87 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1921 — 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.
• 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?