000 Highway 63

Mammoth Spring, AR 72554

$115,000C-

2 bd · 1.5 ba · 2,128 sqft · Built 2003 · MultiFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,032/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $20/mo
• Annual: $244/yr
• Cap rate: 6.50%
• Cash-on-cash: 0.76%
• DSCR: 1.03
• 1% rule: 0.90%
• Cash to close: $32,200

Investor read

• This is a 2-bed/1.5-bath multifamily listed at $115k. Condition is rated fair.
• At list price, monthly cash flow is $20 ($244/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $103k (10.3% below list).
• It's been on market 24 days — a 2% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $103k (10.3% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($795 loan paydown + $8k appreciation (7.0% local appreciation)).
• Location reads 77/100 on livability (#7 in AR, #2,817 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Mammoth Spring School District (town): math 31% / reading 39% proficiency, ranked #126 of 238 in AR (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mammoth Spring Elem. School (math 42% / reading 37%, grade F, #206 of 454 statewide, top 48%, 285 students, 100% FRL); Mammoth Spring High School (math 22% / reading 37%, grade F, #142 of 292 statewide, top 53%, 223 students, 100% FRL) — zoned schools average 100% FRL vs 55% district-wide (45 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 89 active listings in the ZIP.
• Fulton County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 sale attempts since 8y 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.
• At projected returns (7.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.5% vs local median 2.8% in Mammoth Spring — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 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.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — Worn condition
• Moderate: Bathtub and fixtures — Signs of wear
• Moderate: HVAC unit — Appears old and may need maintenance