1938 Highway 32 W

Alleene, AR 71822

$60,000B+

3 bd · 2.0 ba · 1,760 sqft · Built 1953 · SingleFamily · Under Contract · 459 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,029/mo
• Mortgage (P&I): −$315
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $431/mo
• Annual: $5,176/yr
• Cap rate: 14.92%
• Cash-on-cash: 30.81%
• DSCR: 2.37
• 1% rule: 1.71%
• Cash to close: $16,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $60k.
• At list price, monthly cash flow is $431 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 459 days — a 12% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (12.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($415 loan paydown + $4k appreciation (5.9% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Ashdown School District (town): math 29% / reading 24% proficiency, ranked #179 of 238 in AR (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Ashdown Elementary School (math 38% / reading 26%, grade F, #278 of 454 statewide, top 64%, 627 students, 70% FRL); Ashdown Junior High School (math 26% / reading 21%, grade F, #173 of 201 statewide, top 86%, 283 students, 71% FRL); Ashdown High School (math 22% / reading 27%, grade F, #187 of 292 statewide, top 70%, 398 students, 69% FRL) — zoned schools average 70% FRL vs 54% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 24 active listings in the ZIP; 4 units permitted in Little River County in 2024 (0 in 5+ unit buildings).
• Little River County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts; this cycle's ask has dropped $55k (48%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $49k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 459 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1953 — 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.
• 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.