21701 Highway 71 S

Greenwood, AR 72936

$174,000F

3 bd · 1.0 ba · 768 sqft · Built — · SingleFamily · Active · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,107/mo
• Mortgage (P&I): −$912
• Tax + insurance: −$108
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-146/mo
• Annual: $-1,747/yr
• Cap rate: 5.29%
• Cash-on-cash: -3.59%
• DSCR: 0.84
• 1% rule: 0.64%
• Cash to close: $48,720

Investor read

• This is a 3-bed/1.0-bath single-family listed at $174k.
• At list price, monthly cash flow is $-146 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $148k (14.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $111k (36.4% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $111k (36.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#35 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, health & safety D-.
• Greenwood School District (town): math 59% / reading 58% proficiency, ranked #5 of 238 in AR (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Westwood Elementary School (math 77% / reading 58%, grade B+, #17 of 454 statewide, top 4%, 823 students, 38% FRL); East Hills Middle School (math 58% / reading 54%, grade B-, #19 of 201 statewide, top 9%, 590 students, 30% FRL); Greenwood High School (math 38% / reading 52%, grade D-, #27 of 292 statewide, top 10%, 879 students, 20% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: 143 active listings in the ZIP; 388 units permitted in Sebastian County in 2024 (16 in 5+ unit buildings).
• Sebastian County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 5.3% vs local median 3.6% in Greenwood — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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.
• 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.