Magnolia Park Eleanor Plan

Fayetteville, AR 72704

$1,055,000F

5 bd · 4.5 ba · 4,485 sqft · Built — · SingleFamily · Active · 158 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,986/mo
• Mortgage (P&I): −$7,164
• Tax + insurance: −$2,277
• HOA: −$0
• Vac / Maint / Mgmt: −$627
• Net cashflow: $-7,081/mo
• Annual: $-84,978/yr
• Cap rate: 0.07%
• Cash-on-cash: -22.22%
• DSCR: 0.01
• 1% rule: 0.22%
• Cash to close: $382,491

Investor read

• This is a 5-bed/4.5-bath single-family listed at $1.05M. Condition is rated excellent.
• At list price, monthly cash flow is $-7k ($-85k/yr) — negative.
• To cash-flow at today's rent, offer at most $341k (67.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $299k (71.7% below list).
• It's been on market 158 days — a 12% lower offer ($928k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $299k (71.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $41k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#3 in AR, #871 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment D+, crime D-.
• Fayetteville School District (urban): math 50% / reading 49% proficiency, ranked #19 of 238 in AR (top 8%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Holcomb Elementary School (math 65% / reading 52%, grade B-, #45 of 454 statewide, top 10%, 643 students, 31% FRL); Ramay Junior High School (math 39% / reading 39%, grade F, #102 of 201 statewide, top 52%, 645 students, 54% FRL); Fayetteville High School East (math 41% / reading 50%, grade D-, #24 of 292 statewide, top 9%, 2,685 students, 27% FRL) — zoned schools at 37% FRL track the district average.
• Market conditions: Rents rising (+2.2%/yr); 734 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 3,494 units permitted in Washington County in 2024 (1,497 in 5+ unit buildings).
• Washington County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.1% vs local median 3.6% in Fayetteville — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 37% of the median local income ($96k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 158 days. Have you received any prior offers? Is the seller open to a 72% 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.