1 Sherwood Multi Package Properties Dr

Sherwood, AR 72120

$17,000,000C

None bd · None ba · 170,366 sqft · Built — · MultiFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $188,215/mo
• Mortgage (P&I): −$89,150
• Tax + insurance: −$28,333
• HOA: −$0
• Vac / Maint / Mgmt: −$39,525
• Net cashflow: $31,207/mo
• Annual: $374,480/yr
• Cap rate: 8.50%
• Cash-on-cash: 7.87%
• DSCR: 1.35
• 1% rule: 1.11%
• Cash to close: $4,760,000

Investor read

• This is a multifamily listed at $17.00M. Condition is rated average.
• At list price, monthly cash flow is $31k ($374k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($188k rent vs $17.00M).
• It's been on market 73 days — a 6% lower offer ($15.98M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $15.98M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $118k of loan paydown is wiped out by about $510k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#19 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Pulaski County Spec. School District (rural): math 27% / reading 31% proficiency, ranked #150 of 238 in AR (top 63%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents rising fast (+4.8%/yr); 243 active listings in the ZIP; solid renter incomes; 1,006 units permitted in Pulaski County in 2024 (0 in 5+ unit buildings).
• Pulaski County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts 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 (-3.0% appreciation + 4.8% rent growth), your $4.76M cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 8.5% vs local median 4.3% in Sherwood — 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.
• At $188,215/mo this rent would consume 2949% of the median local household income ($77k/yr) (locally 774% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 6% 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of aging
• Major: exterior siding — Weathered appearance
• Major: driveway and parking lot — Signs of wear