RC Keswick Plan

Elkins, AR 72727

$235,000F

3 bd · 2.0 ba · 1,051 sqft · Built — · SingleFamily · Active · 416 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,670/mo
• Mortgage (P&I): −$1,444
• Tax + insurance: −$459
• HOA: −$0
• Vac / Maint / Mgmt: −$351
• Net cashflow: $-583/mo
• Annual: $-7,000/yr
• Cap rate: 3.75%
• Cash-on-cash: -9.08%
• DSCR: 0.60
• 1% rule: 0.61%
• Cash to close: $77,104

Investor read

• This is a 3-bed/2.0-bath single-family listed at $235k.
• At list price, monthly cash flow is $-583 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $191k (18.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $167k (28.9% below list).
• It's been on market 416 days — a 12% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $167k (28.9% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($2k loan paydown + $9k appreciation (3.3% local appreciation)).
• Location reads 64/100 on livability (#186 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Elkins School District (rural): math 43% / reading 40% proficiency, ranked #57 of 238 in AR (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Elkins Elem. Primary School (321 students, 49% FRL); Elkins Middle School (math 43% / reading 43%, grade D-, #70 of 201 statewide, top 38%, 348 students, 44% FRL); Elkins High School (math 17% / reading 37%, grade F, #164 of 292 statewide, top 61%, 418 students, 36% FRL).
• Market conditions: 131 active listings in the ZIP; solid renter incomes; 3,494 units permitted in Washington County in 2024 (1,497 in 5+ unit buildings).
• Washington County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 4, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 416 days. Have you received any prior offers? Is the seller open to a 29% 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 D-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.