71 Hwy 92 W

Higden, AR 72067

$225,000D

3 bd · 2.0 ba · 2,058 sqft · Built 1978 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,159/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$143
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $-408/mo
• Annual: $-4,892/yr
• Cap rate: 4.12%
• Cash-on-cash: -7.77%
• DSCR: 0.65
• 1% rule: 0.51%
• Cash to close: $63,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k.
• At list price, monthly cash flow is $-408 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $153k (32.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (48.5% below list).
• It's been on market 38 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (48.5% below list) — sets the bar for 1% rule.
• In year one you build about $19k of equity ($2k loan paydown + $17k appreciation (7.6% local appreciation)).
• Location reads 61/100 on livability (#236 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A, housing B+, crime B; Watch: employment D, amenities F, commute F.
• West Side School District (rural): math 29% / reading 41% proficiency, ranked #118 of 238 in AR (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Side Elementary School (math 27% / reading 42%, grade F, #254 of 454 statewide, top 59%, 288 students, 100% FRL); West Side High School (math 27% / reading 42%, grade F, #92 of 292 statewide, top 37%, 218 students, 100% FRL) — zoned schools average 100% FRL vs 47% district-wide (53 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 168 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.
• Current owner paid $56k; list at $225k implies a 305% gain — meaningful room to come down on a strong offer.
• 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→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.1% vs local median 1.9% in Higden — 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 38 days. Have you received any prior offers? Is the seller open to a 49% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.