120 Kitchen St

Lamar, AR 72846

$79,900C-

2 bd · 1.0 ba · 704 sqft · Built 1990 · SingleFamily · Under Contract · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $779/mo
• Mortgage (P&I): −$419
• Tax + insurance: −$62
• HOA: −$0
• Vac / Maint / Mgmt: −$164
• Net cashflow: $135/mo
• Annual: $1,618/yr
• Cap rate: 8.32%
• Cash-on-cash: 7.23%
• DSCR: 1.32
• 1% rule: 0.98%
• Cash to close: $22,372

Investor read

• This is a 2-bed/1.0-bath single-family listed at $80k.
• At list price, monthly cash flow is $135 ($2k/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 $78k (2.5% below list).
• It's been on market 16 days — a 2% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $78k (2.5% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($552 loan paydown + $5k appreciation (6.2% local appreciation)).
• Location reads 71/100 on livability (#47 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Lamar School District (rural): math 32% / reading 30% proficiency, ranked #152 of 238 in AR (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lamar Elementary School (math 36% / reading 27%, grade F, #293 of 454 statewide, top 65%, 621 students, 67% FRL); Lamar High School (math 12% / reading 27%, grade F, #239 of 292 statewide, top 85%, 358 students, 59% FRL).
• Market conditions: 35 active listings in the ZIP; 12 units permitted in Johnson County in 2024 (0 in 5+ unit buildings).
• Johnson County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 8y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $41k; list at $80k implies a 95% gain — meaningful room to come down on a strong offer.
• At projected returns (6.2% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 D-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.