500 & 506 Prairie St

Charleston, AR 72933

$1D

2 bd · 2.0 ba · 1,315 sqft · Built 1961 · SingleFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,195/mo
• Mortgage (P&I): −$896
• Tax + insurance: −$285
• HOA: −$0
• Vac / Maint / Mgmt: −$251
• Net cashflow: $-237/mo
• Annual: $-2,848/yr
• Cap rate: 4.63%
• Cash-on-cash: -5.95%
• DSCR: 0.74
• 1% rule: 0.70%
• Cash to close: $47,866

Investor read

• This is a 2-bed/2.0-bath single-family listed at $1.
• At list price, monthly cash flow is $-237 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $1).
• It's been on market 16 days — a 2% lower offer ($0) is reasonable based on typical stale-listing flexibility.
• In year one you build about $18k of equity ($1k loan paydown + $17k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#70 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D, amenities F, commute F.
• Charleston School District (rural): math 46% / reading 43% proficiency, ranked #39 of 238 in AR (top 16%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Charleston Elementary School (math 56% / reading 41%, grade D, #109 of 454 statewide, top 25%, 454 students, 47% FRL); Charleston High School (math 38% / reading 46%, grade F, #38 of 292 statewide, top 14%, 435 students, 44% FRL).
• Watch-outs: property tax is 256425.0% of price.
• Market conditions: 51 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 23 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• Franklin County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$46k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→20/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?
• Built in 1961 — 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.
• Crime grade is D 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.