75 New St

Quitman, AR 72131

$187,500D

4 bd · 1.0 ba · 1,025 sqft · Built 1970 · SingleFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,179/mo
• Mortgage (P&I): −$983
• Tax + insurance: −$153
• HOA: −$0
• Vac / Maint / Mgmt: −$248
• Net cashflow: $-205/mo
• Annual: $-2,460/yr
• Cap rate: 4.98%
• Cash-on-cash: -4.69%
• DSCR: 0.79
• 1% rule: 0.63%
• Cash to close: $52,500

Investor read

• This is a 4-bed/1.0-bath single-family listed at $188k.
• At list price, monthly cash flow is $-205 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $151k (19.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $118k (37.1% below list).
• It's been on market 93 days — a 9% lower offer ($171k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (37.1% below list) — sets the bar for 1% rule.
• In year one you build about $20k of equity ($1k loan paydown + $19k appreciation (10.0% local appreciation)).
• Location reads 63/100 on livability (#203 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime D-, amenities F, commute F.
• Quitman School District (rural): math 39% / reading 42% proficiency, ranked #63 of 238 in AR (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Quitman Elementary School (math 32% / reading 32%, grade F, #278 of 454 statewide, top 64%, 415 students, 56% FRL); Quitman Middle School (math 47% / reading 47%, grade D+, #46 of 201 statewide, top 24%, 214 students, 50% FRL); Quitman High School (math 32% / reading 42%, grade F, #64 of 292 statewide, top 26%, 253 students, 46% FRL).
• Market conditions: 73 active listings in the ZIP; 13 units permitted in Cleburne County in 2024 (0 in 5+ unit buildings).
• Cleburne County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 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 $100k; list at $188k implies a 88% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.0% vs local median 2.1% in Quitman — 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

• 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 93 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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 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?