705 S 27 Hwy

Marshall, AR 72650

$129,500D

3 bd · 1.5 ba · 1,252 sqft · Built 1950 · SingleFamily · Under Contract · 287 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,103/mo
• Mortgage (P&I): −$679
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$232
• Net cashflow: $99/mo
• Annual: $1,187/yr
• Cap rate: 7.21%
• Cash-on-cash: 3.27%
• DSCR: 1.15
• 1% rule: 0.85%
• Cash to close: $36,260

Investor read

• This is a 3-bed/1.5-bath single-family listed at $130k.
• At list price, monthly cash flow is $99 ($1k/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 $110k (14.8% below list).
• It's been on market 287 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (14.8% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($895 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#115 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.
• Searcy County School District (rural): math 39% / reading 40% proficiency, ranked #82 of 238 in AR (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Marshall Elementary School (math 64% / reading 34%, grade D, #93 of 454 statewide, top 23%, 293 students, 99% FRL); Leslie Elementary School (math 47% / reading 37%, grade D-, #78 of 201 statewide, top 40%, 190 students, 98% FRL); Marshall High School (math 28% / reading 43%, grade F, #85 of 292 statewide, top 30%, 358 students, 99% FRL) — zoned schools average 99% FRL vs 57% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 80 active listings in the ZIP.
• Searcy County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts 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 $18k; list at $130k implies a 619% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 7.2% vs local median 3.5% in Marshall — 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

• It's been on market 287 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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?
• 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.