BRISTOL Plan

Brookland, AR 72417

$280,990D-

3 bd · 2.0 ba · 1,672 sqft · Built — · SingleFamily · Active · 322 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,941/mo
• Mortgage (P&I): −$1,523
• Tax + insurance: −$484
• HOA: −$0
• Vac / Maint / Mgmt: −$408
• Net cashflow: $-473/mo
• Annual: $-5,675/yr
• Cap rate: 4.34%
• Cash-on-cash: -6.98%
• DSCR: 0.69
• 1% rule: 0.67%
• Cash to close: $81,296

Investor read

• This is a 3-bed/2.0-bath single-family listed at $281k.
• At list price, monthly cash flow is $-473 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $222k (21.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $194k (30.9% below list).
• It's been on market 322 days — a 12% lower offer ($247k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (30.9% below list) — sets the bar for 1% rule.
• In year one you build about $31k of equity ($2k loan paydown + $29k appreciation (10.0% local appreciation)).
• Location reads 70/100 on livability (#57 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.
• Brookland School District (suburban): math 45% / reading 39% proficiency, ranked #47 of 238 in AR (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 117 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 926 units permitted in Craighead County in 2024 (69 in 5+ unit buildings).
• Craighead County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$50k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• This rent runs 38% of the median local income ($62k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 322 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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.
• 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.