1 Elder Ln

Bella Vista, AR 72714

$429,000D

3 bd · 2.5 ba · 2,167 sqft · Built 2001 · SingleFamily · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,913/mo
• Mortgage (P&I): −$2,250
• Tax + insurance: −$381
• HOA: −$0
• Vac / Maint / Mgmt: −$612
• Net cashflow: $-330/mo
• Annual: $-3,956/yr
• Cap rate: 5.37%
• Cash-on-cash: -3.29%
• DSCR: 0.85
• 1% rule: 0.68%
• Cash to close: $120,120

Investor read

• This is a 3-bed/2.5-bath single-family listed at $429k.
• At list price, monthly cash flow is $-330 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $371k (13.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $291k (32.1% below list).
• It's been on market 78 days — a 6% lower offer ($403k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $291k (32.1% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($3k loan paydown + $6k appreciation (1.4% local appreciation)).
• Location reads 67/100 on livability (#111 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools A; Watch: amenities F, commute F, health & safety F.
• Bentonville School District (urban): math 59% / reading 59% proficiency, ranked #3 of 238 in AR (top 1%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 475 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 4,359 units permitted in Benton County in 2024 (402 in 5+ unit buildings).
• Benton County population projected at +56% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 9y ago; this cycle's ask is 16089% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $220k; list at $429k implies a 95% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.4% vs local median 3.6% in Bella Vista — 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.
• This rent runs 34% of the median local income ($103k/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 78 days. Have you received any prior offers? Is the seller open to a 32% 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.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.