1627 Mundell Rd

Lost Bridge Village, AR 72631

$849,000C

3 bd · 2.0 ba · 3,350 sqft · Built 2014 · SingleFamily · Pending · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,785/mo
• Mortgage (P&I): −$4,452
• Tax + insurance: −$894
• HOA: −$0
• Vac / Maint / Mgmt: −$1,845
• Net cashflow: $1,594/mo
• Annual: $19,132/yr
• Cap rate: 8.55%
• Cash-on-cash: 8.05%
• DSCR: 1.36
• 1% rule: 1.03%
• Cash to close: $237,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $849k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $849k).
• It's been on market 80 days — a 6% lower offer ($798k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $798k (6.0% below list) — sets the bar for market timing.
• In year one you build about $68k of equity ($6k loan paydown + $62k appreciation (7.3% local appreciation)).
• Location reads 57/100 on livability (#348 in AR) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime B+, employment B; Watch: cost of living C-, schools F, amenities F.
• Eureka Springs School District (rural): math 37% / reading 46% proficiency, ranked #61 of 238 in AR (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 372 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 30 units permitted in Carroll County in 2024 (0 in 5+ unit buildings).
• Carroll County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $710k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (7.3% appreciation + 3.0% rent growth), your $238k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$109k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.5% vs local median 2.8% in Lost Bridge Village — 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 80 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.
• 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.