894 Cr 792

Brookland, AR 72417

$515,000D

4 bd · 3.0 ba · 3,325 sqft · Built 2024 · SingleFamily · Active · 365 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,778/mo
• Mortgage (P&I): −$2,701
• Tax + insurance: −$404
• HOA: −$0
• Vac / Maint / Mgmt: −$373
• Net cashflow: $-1,700/mo
• Annual: $-20,401/yr
• Cap rate: 2.33%
• Cash-on-cash: -14.15%
• DSCR: 0.37
• 1% rule: 0.35%
• Cash to close: $144,200

Investor read

• This is a 4-bed/3.0-bath single-family listed at $515k.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $215k (58.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $178k (65.5% below list).
• It's been on market 365 days — a 12% lower offer ($453k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $178k (65.5% below list) — sets the bar for 1% rule.
• In year one you build about $55k of equity ($4k loan paydown + $52k appreciation (10.0% local appreciation)).
• Location reads 70/100 on livability (#57 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D, amenities F, commute F.
• Brookland School District (suburban): math 45% / reading 39% proficiency, ranked #47 of 238 in AR (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brookland Elementary School (875 students, 32% FRL); Brookland Junior High School (math 36% / reading 46%, grade F, #83 of 201 statewide, top 44%, 718 students, 26% FRL); Brookland High School (math 22% / reading 37%, grade F, #142 of 292 statewide, top 53%, 589 students, 27% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: 118 active listings in the ZIP; 926 units permitted in Craighead County in 2024 (69 in 5+ unit buildings).
• Craighead County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $70k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$89k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.3% vs local median 4.2% in Brookland — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 34% of the median local income ($62k/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 365 days. Have you received any prior offers? Is the seller open to a 65% 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 D 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?
• 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.