7948 Hwy 224

Weldon, AR 72112

$65,000B+

3 bd · 1.0 ba · 1,680 sqft · Built 2008 · Manufactured · Under Contract

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,005/mo
• Mortgage (P&I): −$341
• Tax + insurance: −$464
• HOA: −$0
• Vac / Maint / Mgmt: −$211
• Net cashflow: $-12/mo
• Annual: $-138/yr
• Cap rate: 13.96%
• Cash-on-cash: 27.36%
• DSCR: 2.22
• 1% rule: 1.55%
• Cash to close: $18,200

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $65k.
• At list price, monthly cash flow is $-12 ($-138/yr) — negative.
• To cash-flow at today's rent, offer at most $63k (3.1% below list).
• Meets the 1% rule at list price ($1k rent vs $65k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $63k (3.1% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($449 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 50/100 on livability (#480 in AR) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: employment D+, crime F, amenities F.
• Newport School District (town): math 23% / reading 26% proficiency, ranked #194 of 238 in AR (top 82%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Newport Elementary School (math 31% / reading 25%, grade F, #326 of 454 statewide, top 72%, 656 students, 51% FRL); Newport High School (math 19% / reading 27%, grade F, #209 of 292 statewide, top 72%, 612 students, 41% FRL) — zoned schools average 46% FRL vs 68% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 41 active listings in the ZIP; 13 units permitted in Jackson County in 2024 (10 in 5+ unit buildings).
• Jackson County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); 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

• 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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.