16 Fairview Dr

McGehee, AR 71654

$88,000B+

3 bd · 2.0 ba · 1,919 sqft · Built 1974 · SingleFamily · Under Contract · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,231/mo
• Mortgage (P&I): −$461
• Tax + insurance: −$160
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $350/mo
• Annual: $4,205/yr
• Cap rate: 11.07%
• Cash-on-cash: 17.07%
• DSCR: 1.76
• 1% rule: 1.40%
• Cash to close: $24,640

Investor read

• This is a 3-bed/2.0-bath single-family listed at $88k.
• At list price, monthly cash flow is $350 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $88k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-1.0%/yr); year-one equity from $608 of loan paydown is wiped out by about $891 of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#122 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools F, amenities F, commute F.
• Mcgehee School District (town): math 24% / reading 23% proficiency, ranked #200 of 238 in AR (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 20 active listings in the ZIP; 4 units permitted in Desha County in 2024 (0 in 5+ unit buildings).
• Desha County population projected at -31% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $55k; list at $88k implies a 60% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk; major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1974 — 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?
• 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.