513 Kirkland St

Gassville, AR 72635

$142,900D

2 bd · 1.0 ba · 991 sqft · Built — · SingleFamily · Active · 95 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $979/mo
• Mortgage (P&I): −$749
• Tax + insurance: −$107
• HOA: −$0
• Vac / Maint / Mgmt: −$206
• Net cashflow: $-82/mo
• Annual: $-989/yr
• Cap rate: 5.60%
• Cash-on-cash: -2.47%
• DSCR: 0.89
• 1% rule: 0.69%
• Cash to close: $40,012

Investor read

• This is a 2-bed/1.0-bath single-family listed at $143k.
• At list price, monthly cash flow is $-82 ($-989/yr) — negative.
• To cash-flow at today's rent, offer at most $128k (10.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (31.5% below list).
• It's been on market 95 days — a 9% lower offer ($130k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (31.5% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($988 loan paydown + $2k appreciation (1.6% local appreciation)).
• Location reads 68/100 on livability (#84 in AR) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Cotter School District (rural): math 41% / reading 40% proficiency, ranked #67 of 238 in AR (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Amanda Gist Elementary School (math 51% / reading 40%, grade D-, #135 of 454 statewide, top 30%, 397 students, 100% FRL); Cotter High School (math 31% / reading 40%, grade F, #85 of 292 statewide, top 30%, 331 students, 100% FRL) — zoned schools average 100% FRL vs 60% district-wide (40 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 24 active listings in the ZIP; 47 units permitted in Baxter County in 2024 (0 in 5+ unit buildings).
• Baxter County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 10 sale attempts since 6y 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.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $40k cash investment doubles in ~10 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.6% vs local median 2.9% in Gassville — 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 95 days. Have you received any prior offers? Is the seller open to a 31% 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?
• 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.