39 Meadow Ridge Ln

Bergman, AR 72601

$99,900D

2 bd · 1.0 ba · 576 sqft · Built 2023 · SingleFamily · Pending · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $790/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$86
• HOA: −$0
• Vac / Maint / Mgmt: −$166
• Net cashflow: $14/mo
• Annual: $165/yr
• Cap rate: 6.46%
• Cash-on-cash: 0.59%
• DSCR: 1.03
• 1% rule: 0.79%
• Cash to close: $27,972

Investor read

• This is a 2-bed/1.0-bath single-family listed at $100k.
• At list price, monthly cash flow is $14 ($165/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 $79k (21.0% below list).
• It's been on market 86 days — a 6% lower offer ($94k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (21.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.9%/yr); year-one equity from $691 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#228 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Bergman School District (rural): math 50% / reading 54% proficiency, ranked #13 of 238 in AR (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bergman Elementary School (math 62% / reading 42%, grade C-, #77 of 454 statewide, top 19%, 515 students, 67% FRL); Bergman Middle School (math 51% / reading 58%, grade B-, #22 of 201 statewide, top 12%, 341 students, 62% FRL); Bergman High School (math 32% / reading 57%, grade F, #31 of 292 statewide, top 12%, 268 students, 50% FRL) — zoned schools average 60% FRL vs 44% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 444 active listings in the ZIP; 92 units permitted in Boone County in 2024 (72 in 5+ unit buildings).
• Boone County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $20k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Questions for listing agent

• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 21% 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 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?
• Crime grade is F 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.