405 Melrose St · Jonesboro, AR 72401

$399,900

None bd · None ba · 6,716 sqft · MultiFamily · 44 Days on market

Poor condition 0.44 ac lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Rent growth +3.4/5.0
• Livability +3.2/5.0
• Schools +2.3/10.0
• Condition / age +1.0/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks

Welcome to the Multifamily Market 1900 Cedar Heights Dr and 405 Melrose St of the Cedar Heights 1st Addition in Jonesboro, Arkansas, within the Jonesboro School District. Opportunity Knocks! This prime piece of rental property offers 2 fourplexes totaling 8 income-producing units. The exteriors are wrapped in brick and vinyl, topped with 3-tab shingles, and accented by a parking lot, mature shade trees, and a small patio at each unit. The interior of each unit includes 2 bedrooms, 1.5 bathrooms, a living room and kitchen, and washer and dryer hookups. Each unit contains a refrigerator and stove and tenants pay electric. Occupied units are rented at $650 per month. Conveniently located near

Key facts

• Parking lot
• Mature shade trees
• Small patio

Tags

• INCOME PRODUCING UNITS
• BRICK AND VINYL EXTERIORS
• PARKING LOT
• MATURE SHADE TREES
• SMALL PATIO
• WASHER AND DRYER HOOKUPS

Property features AI

Finance

• Other: Located in the Cedar Heights subdivision

Exterior

• Utilities: Public water; Public sewer
• Home design: Multi-family residential income property; Bundled-only listing
• Construction: Brick and vinyl siding exterior
• Exterior features: Patio; Level lot; R-1 zoning

Interior

• Flooring: Ceramic tile; Vinyl
• Heating & cooling: Central heating; Central air conditioning
• Interior features: Ceiling fans; Ceramic tile flooring; Vinyl flooring

What this means for you Summary

Snapshot

• This is a multifamily listed at $400k. Condition is rated poor.

Deal economics

• At list price, monthly cash flow is $5k ($60k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $400k).
• Recommended offer: $388k (3.0% below list) — sets the bar for market timing.
• Cap rate 21.4% vs local median 4.4% in Jonesboro — 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.

Location & tenants

• Location reads 65/100 on livability (#145 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.
• Jonesboro School District (urban): math 28% / reading 28% proficiency, ranked #169 of 238 in AR (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Annie Camp Jr. High School (math 22% / reading 34%, grade F, #150 of 201 statewide, top 76%, 784 students, 100% FRL); The Academies At Jonesboro High School (math 16% / reading 27%, grade F, #225 of 292 statewide, top 78%, 1,386 students, 100% FRL) — zoned schools average 100% FRL vs 67% district-wide (33 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.6%/yr); 295 active listings in the ZIP; 926 units permitted in Craighead County in 2024 (69 in 5+ unit buildings).
• At $9,878/mo this rent would consume 262% of the median local household income ($45k/yr) (locally 2606% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Craighead County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.6% rent growth), your $112k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 44 days — a 3% lower offer ($388k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts 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.

Risks & watch-outs

• 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.

Recommended offer $387,903 (3.0% below list)

Questions for the listing agent

1. It's been on market 44 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 2.47% ✓
• Cap rate: 21.42%
• Cash-on-cash: 54.01%
• DSCR: 3.40
• GRM: 3.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.64% rent growth · sell at horizon

5-year hold

• IRR: 52.9%
• Equity multiple: 3.35×
• Total profit: $262,750
• Equity at exit: $59,626

10-year hold

• IRR: 58.4%
• Equity multiple: 6.98×
• Total profit: $669,354
• Equity at exit: $34,576

Cash invested: $111,972 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 92 Strongly Landlord-Friendly
• State Arkansas: 92 Strongly Landlord-Friendly · R+14
• County: — inherits STATE
• City: — inherits STATE

Only US state where non-payment is criminal. Strongly landlord-favorable; very few tenant protections.

Methodology + full state rankings →

ZIP-level market 72401

• Home prices YoY: -34.2%
• Rents YoY: 3.6%
• Active inventory: 295
• Price-to-rent: 27.0×

Monthly cashflow live

• Estimated rent: $9,878 medium
• Mortgage (P&I): −$2,097
• Tax est. 1.5%: −$500 /mo · $5,998/yr
• Insurance: −$167
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,074
• Net cashflow: $5,040

Break-even live

Break-even rent $3,498

Max offer price $399,900

Occupancy floor 44%

8-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 8× units	2	1.5	$9,880
Total (8 units)			$9,878

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $99,975
• Closing costs: $11,997
• Reserves months: —
• Total cash needed: —

Listing history 24 events

1. 2026-06-19
   days on market $399,900 Active 44 DOM
2. 2026-06-18
   days on market $399,900 Active 43 DOM
3. 2026-06-17
   days on market $399,900 Active 42 DOM
4. 2026-06-16
   days on market $399,900 Active 41 DOM
5. 2026-06-15
   days on market $399,900 Active 40 DOM
6. 2026-06-14
   days on market $399,900 Active 38 DOM
7. 2026-06-13
   days on market $399,900 Active 37 DOM
8. 2026-06-10
   days on market $399,900 Active 35 DOM
9. 2026-06-09
   days on market $399,900 Active 34 DOM
10. 2026-06-08
    days on market $399,900 Active 33 DOM
11. 2026-06-07
    days on market $399,900 Active 32 DOM
12. 2026-06-05
    days on market $399,900 Active 29 DOM
13. 2026-06-02
    days on market $399,900 Active 27 DOM
14. 2026-06-01
    days on market $399,900 Active 26 DOM
15. 2026-05-31
    days on market $399,900 Active 25 DOM
16. 2026-05-30
    days on market $399,900 Active 24 DOM
17. 2026-05-08
    status Active
18. 2026-04-21
    historical
19. 2026-04-18
    listed $399,900 Active
20. 2026-03-03
    historical
21. 2025-10-25
    price $249,900
22. 2025-10-24
    price $249,900
23. 2025-09-11
    listed $259,900 Active
24. 2025-09-10
    listed $259,900 New Listing

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 6/10 Major 7 d/yr ≥108°F today · 22 d/yr by 30 yrs out
• 💨 Wind 3/10 Moderate 6% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $118,536
• − Mortgage interest: −$22,401
• − Property taxes: −$5,998
• − Insurance: −$2,000
• − Repairs & maintenance: −$9,483
• − Management: −$9,483
• − Depreciation: −$11,633
• Taxable income: $57,538
• Est. tax owed @ 24.0%: −$13,809
• After-tax cash flow: $46,671/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 13 photos

Poor 20/100 Extensive rehab

This multifamily property requires extensive repairs and maintenance, including a new roof, exterior siding, flooring, interior walls, and landscaping. These repairs will significantly improve the property's condition and increase its value for both resale and rental.

Repairs flagged

• Major roof — The roof appears to be in poor condition, with visible damage and discoloration.
• Major exterior siding — The exterior siding is peeling and in poor condition, with visible damage and discoloration.
• Major flooring — The flooring in the interior appears to be in poor condition, with visible wear and tear.
• Major interior walls — The interior walls appear to be in poor condition, with visible damage and discoloration.
• Major exterior fencing — The exterior fencing is in poor condition, with visible damage and discoloration.
• Major landscaping — The landscaping appears to be in poor condition, with overgrown grass and weeds.

Value-add opportunities

• Both repair and replace roof — A new roof will improve the overall condition of the property and increase its value for both resale and rental.
• Both repair and replace exterior siding — A new exterior siding will improve the overall condition of the property and increase its value for both resale and rental.
• Both repair and replace flooring — New flooring will improve the overall condition of the property and increase its value for both resale and rental.
• Both repair and paint interior walls — New paint will improve the overall condition of the property and increase its value for both resale and rental.
• Both repair and replace landscaping — New landscaping will improve the overall condition of the property and increase its value for both resale and rental.

Renovation cost estimate screening

Repair item	Severity	Est. cost
roof · The roof appears to be in poor condition, with visible damage and discoloration.	Major	$15,000–50,000
exterior siding · The exterior siding is peeling and in poor condition, with visible damage and discoloration.	Major	$15,000–50,000
flooring · The flooring in the interior appears to be in poor condition, with visible wear and tear.	Major	$15,000–50,000
interior walls · The interior walls appear to be in poor condition, with visible damage and discoloration.	Major	$15,000–50,000
exterior fencing · The exterior fencing is in poor condition, with visible damage and discoloration.	Major	$15,000–50,000
landscaping · The landscaping appears to be in poor condition, with overgrown grass and weeds.	Major	$15,000–50,000
Total estimated repair cost · 6 items		$90,000–300,000

Value-add ROI direction

• Both repair and replace roof — A new roof will improve the overall condition of the property and increase its value for both resale and rental. ↑
• Both repair and replace exterior siding — A new exterior siding will improve the overall condition of the property and increase its value for both resale and rental. ↑
• Both repair and replace flooring — New flooring will improve the overall condition of the property and increase its value for both resale and rental. ↑
• Both repair and paint interior walls — New paint will improve the overall condition of the property and increase its value for both resale and rental. ↑
• Both repair and replace landscaping — New landscaping will improve the overall condition of the property and increase its value for both resale and rental. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Jonesboro School District
• NCES district ID: 0508280
• Math proficiency: 28% ▼ -9.00%
• Reading proficiency: 28% ▼ -8.00%
• Median HH income: $34,347
• Composite: 23.06/100
• National rank: #7967
• State rank: #169 of 238 in AR

Livability — Jonesboro

• Score: 65/100
• State rank: #145
• US rank: #12692

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment D- Housing A+ Health & safety A+ User ratings D+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Jonesboro, AR
• County: Craighead County · 97,185 people
• City population: 91,245
• Metro: Jonesboro, AR
• Population (ZIP): 42,602
• Household income: $45,329
• Rent vs Own: 51.1% rent · 48.9% own
• Severe rent burden: 2606.0

Population outlook (Craighead County) Hauer SSP2

• Today (2025): 122,235 people
• By 2030: 131,338 · +7.4%
• By 2040: 149,862 · +22.6%
• By 2050: 168,034 · +37.5%
• By 2075: 208,094 · +70.2%
• By 2100: 233,251 · +90.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.56)
• Race & ethnicity: White 60% Black 26% Hispanic / Latino 9% Two or more races 7%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Slovak 2% Italian 1% Lithuanian 1%
• Foreign-born: 4% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Craighead

• 2024 margin: Solid R (+37.4) · D 30.1% · R 67.5% · Other 2.4%
• 2008→2024 swing: -12.9pp toward R · 2008: -24.5pp · 2024: -37.4pp
• All cycles: 2024: R+37.4 2020: R+35.4 2016: R+35.2 2012: R+31.1 2008: R+24.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -108.25%
• Current HPI: 208.2079
• Rent YoY: ▲ 3.64%
• Metro: Jonesboro, AR
• State GDP YoY: ▲ 3.80%
• F500 in state: 10

Industry mix (Fortune 500 HQ in AR)

Industry	F500 HQs	Revenue
▸Retail	1	$681B
▸Food / Agriculture	1	$53B
▸Retail / Energy	1	$22B
▸Transportation / Logistics	1	$12B
▸Energy	1	$4B

Price history

+53.9% since first listed

8 events — show timeline

• 2026-05-08 Relisted — NEABOR MLS
• 2026-04-21 Delisted — NEABOR MLS
• 2026-04-18 Listed $399,900 NEABOR MLS
• 2026-03-03 Listing Removed — CARMLS
• 2025-10-25 Price Changed $249,900 CARMLS
• 2025-10-24 Price Changed $249,900 NEABOR MLS
• 2025-09-11 Listed $259,900 NEABOR MLS
• 2025-09-10 Listed $259,900 CARMLS