1630 Highway 178 W

Midway, AR 72651

$94,500C

2 bd · 2.0 ba · 896 sqft · Built 1995 · Manufactured · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $866/mo
• Mortgage (P&I): −$496
• Tax + insurance: −$158
• HOA: −$0
• Vac / Maint / Mgmt: −$182
• Net cashflow: $31/mo
• Annual: $376/yr
• Cap rate: 6.69%
• Cash-on-cash: 1.42%
• DSCR: 1.06
• 1% rule: 0.92%
• Cash to close: $26,460

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $94k.
• At list price, monthly cash flow is $31 ($376/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $87k (8.3% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $87k (8.3% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($653 loan paydown + $4k appreciation (3.9% local appreciation)).
• Location reads 66/100 on livability (#139 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: schools F, amenities F, commute F.
• Mountain Home School District (town): math 45% / reading 45% proficiency, ranked #40 of 238 in AR (top 17%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 17 active listings in the ZIP; 47 units permitted in Baxter County in 2024 (0 in 5+ unit buildings).
• Baxter County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 7y ago; this cycle's ask is 89% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $46k; list at $94k implies a 105% gain — meaningful room to come down on a strong offer.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $26k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.7% vs local median 2.5% in Midway — 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

• 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?
• 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.