1805 S Y St

Fort Smith, AR 72901

$1,025,000F

None bd · None ba · 10,144 sqft · Built 1985 · Townhouse · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $785/mo
• Mortgage (P&I): −$5,375
• Tax + insurance: −$887
• HOA: −$0
• Vac / Maint / Mgmt: −$165
• Net cashflow: $-5,642/mo
• Annual: $-67,701/yr
• Cap rate: -0.31%
• Cash-on-cash: -23.59%
• DSCR: -0.05
• 1% rule: 0.08%
• Cash to close: $287,000

Investor read

• This is a townhouse listed at $1.02M.
• At list price, monthly cash flow is $-6k ($-68k/yr) — negative.
• To cash-flow at today's rent, offer at most $90k (91.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $79k (92.3% below list).
• It's been on market 60 days — a 3% lower offer ($994k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (92.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $31k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#151 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D, crime F, amenities F.
• Fort Smith School District (urban): math 35% / reading 39% proficiency, ranked #106 of 238 in AR (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+4.4%/yr); 176 active listings in the ZIP; lower-income renter base — watch delinquency; 388 units permitted in Sebastian County in 2024 (16 in 5+ unit buildings).
• Sebastian County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 7y 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 $500k; list at $1.02M implies a 105% gain — meaningful room to come down on a strong offer.
• 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 -0.3% vs local median 4.3% in Fort Smith — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 60 days. Have you received any prior offers? Is the seller open to a 92% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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.