RC Bridgeport Plan

Benton, AR 72019

$218,900D

4 bd · 2.0 ba · 1,496 sqft · Built — · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,782/mo
• Mortgage (P&I): −$1,157
• Tax + insurance: −$368
• HOA: −$0
• Vac / Maint / Mgmt: −$374
• Net cashflow: $-117/mo
• Annual: $-1,406/yr
• Cap rate: 5.66%
• Cash-on-cash: -2.28%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $61,777

Investor read

• This is a 4-bed/2.0-bath single-family listed at $219k. Condition is rated excellent.
• At list price, monthly cash flow is $-117 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (7.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $178k (18.6% below list).
• It's been on market 76 days — a 6% lower offer ($206k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $178k (18.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#119 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D, amenities F, commute F.
• Benton School District (suburban): math 51% / reading 43% proficiency, ranked #25 of 238 in AR (top 10%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Benton Middle School (math 54% / reading 40%, grade D+, #46 of 201 statewide, top 24%, 1,367 students, 44% FRL).
• Market conditions: Rents rising fast (+4.5%/yr); 422 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 446 units permitted in Saline County in 2024 (0 in 5+ unit buildings).
• Saline County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.7% vs local median 4.2% in Benton — 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

• 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 76 days. Have you received any prior offers? Is the seller open to a 19% 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.