2822 Highland Dr

Rogers, AR 72756

$350,000D+

3 bd · 2.5 ba · 2,355 sqft · Built 1985 · SingleFamily · Active · 123 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,419/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$206
• HOA: −$7
• Vac / Maint / Mgmt: −$508
• Net cashflow: $-138/mo
• Annual: $-1,656/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.69%
• DSCR: 0.92
• 1% rule: 0.69%
• Cash to close: $98,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $350k.
• At list price, monthly cash flow is $-138 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $326k (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $242k (30.9% below list).
• It's been on market 123 days — a 12% lower offer ($308k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $242k (30.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 90/100 on livability (#1 in AR, #98 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+.
• Rogers School District (urban): math 45% / reading 45% proficiency, ranked #31 of 238 in AR (top 13%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Grace Hill Elementary School (math 37% / reading 27%, grade F, #278 of 454 statewide, top 64%, 448 students, 76% FRL); Oakdale Middle School (math 36% / reading 38%, grade F, #109 of 201 statewide, top 56%, 850 students, 66% FRL); Rogers Heritage High School (math 25% / reading 35%, grade F, #138 of 292 statewide, top 48%, 2,080 students, 48% FRL).
• Zoned-school proficiency averages 33% at this address vs 45% district-wide (-12 pts) — the specific schools serving this property underperform the Rogers School District average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+10.0%/yr); 529 active listings in the ZIP; 24 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• Current owner paid $113k; list at $350k implies a 210% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 2.5% in Rogers — 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 40% of the median local income ($72k/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 123 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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.