424 Highway 65 B

Clinton, AR 72031

$397,462B+

17 bd · None ba · 6,010 sqft · Built 1950 · MultiFamily · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,885/mo
• Mortgage (P&I): −$2,084
• Tax + insurance: −$662
• HOA: −$0
• Vac / Maint / Mgmt: −$2,706
• Net cashflow: $7,432/mo
• Annual: $89,189/yr
• Cap rate: 28.73%
• Cash-on-cash: 80.14%
• DSCR: 4.57
• 1% rule: 3.24%
• Cash to close: $111,289

Investor read

• This is a 17-bed/?-bath multifamily listed at $397k. Condition is rated poor.
• At list price, monthly cash flow is $7k ($89k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($13k rent vs $397k).
• It's been on market 44 days — a 3% lower offer ($386k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $386k (3.0% below list) — sets the bar for market timing.
• In year one you build about $42k of equity ($3k loan paydown + $40k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#15 in AR, #4,397 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, amenities F, commute F.
• Clinton School District (rural): math 46% / reading 45% proficiency, ranked #41 of 238 in AR (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 100 active listings in the ZIP; 16 units permitted in Van Buren County in 2024 (0 in 5+ unit buildings).
• Van Buren County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $111k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$68k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 28.7% vs local median 3.6% in Clinton — 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

• It's been on market 44 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 potential leaking and wear.
• Major: exterior siding — Significant discoloration and wear.
• Major: parking lot — Cracks and uneven surfaces.
• Major: interior walls — Likely in a similar state of disrepair as the exterior.
• Major: HVAC systems — Likely in need of repair or replacement.
• Major: landscaping — Overgrown and in need of trimming.