2326 River Ridge Rd

Salem, AR 72019

$1F

3 bd · 2.0 ba · 1,712 sqft · Built 1979 · SingleFamily · Under Contract · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,639/mo
• Mortgage (P&I): −$1,499
• Tax + insurance: −$477
• HOA: −$0
• Vac / Maint / Mgmt: −$344
• Net cashflow: $-681/mo
• Annual: $-8,175/yr
• Cap rate: 3.43%
• Cash-on-cash: -10.21%
• DSCR: 0.55
• 1% rule: 0.57%
• Cash to close: $80,053

Investor read

• This is a 3-bed/2.0-bath single-family listed at $1. Condition is rated poor.
• At list price, monthly cash flow is $-681 ($-8k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $1).
• It's been on market 26 days — a 2% lower offer ($0) is reasonable based on typical stale-listing flexibility.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#148 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, schools B; Watch: amenities F, commute F, employment F.
• Benton School District (suburban): math 51% / reading 43% proficiency, ranked #25 of 238 in AR (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 428856.0% of price.
• Market conditions: Rents rising fast (+4.5%/yr); 245 active listings in the ZIP; solid renter incomes; 446 units permitted in Saline County in 2024 (0 in 5+ unit buildings).
• Saline County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.

Repairs flagged (vision-AI assessment)

• Major: siding — Severe weathering and damage
• Major: roof — Missing shingles and debris
• Major: flooring — Worn and debris-laden
• Major: interior walls/paint — Worn and cluttered