404 N Duff Ave

Sulphur Springs, AR 72768

$39,000B+

2 bd · 1.0 ba · 1,256 sqft · Built — · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,038/mo
• Mortgage (P&I): −$205
• Tax + insurance: −$57
• HOA: −$0
• Vac / Maint / Mgmt: −$218
• Net cashflow: $559/mo
• Annual: $6,711/yr
• Cap rate: 23.50%
• Cash-on-cash: 61.45%
• DSCR: 3.73
• 1% rule: 2.66%
• Cash to close: $10,920

Investor read

• This is a 2-bed/1.0-bath single-family listed at $39k.
• At list price, monthly cash flow is $559 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($270 loan paydown + $2k appreciation (5.7% local appreciation)).
• Location reads 63/100 on livability (#192 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment C-, amenities F, commute F.
• Gravette School District (rural): math 49% / reading 45% proficiency, ranked #26 of 238 in AR (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Glenn Duffy Elementary School (530 students, 42% FRL); Gravette Middle School (math 59% / reading 54%, grade B, #17 of 201 statewide, top 8%, 486 students, 35% FRL); Gravette High School (math 38% / reading 44%, grade F, #43 of 292 statewide, top 15%, 616 students, 33% FRL) — zoned schools at 36% FRL track the district average.
• Market conditions: 36 active listings in the ZIP; 4,359 units permitted in Benton County in 2024 (402 in 5+ unit buildings).
• Benton County population projected at +56% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $27k; 46% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.5% vs local median 4.4% in Sulphur Springs — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.