1521 Ar 69b Hwy

Melbourne, AR 72573

$10,000D+

1 bd · 1.0 ba · 960 sqft · Built 1970 · SingleFamily · Under Contract · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $855/mo
• Mortgage (P&I): −$52
• Tax + insurance: −$19
• HOA: −$0
• Vac / Maint / Mgmt: −$180
• Net cashflow: $604/mo
• Annual: $7,246/yr
• Cap rate: 78.75%
• Cash-on-cash: 258.79%
• DSCR: 12.51
• 1% rule: 8.55%
• Cash to close: $2,800

Investor read

• This is a 1-bed/1.0-bath single-family listed at $10k.
• At list price, monthly cash flow is $604 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($855 rent vs $10k).
• It's been on market 23 days — a 2% lower offer ($10k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10k (1.5% below list) — sets the bar for market timing.
• In year one you build about $369 of equity ($69 loan paydown + $300 appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#127 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A, crime B+; Watch: amenities F, commute F, employment F.
• Melbourne School District (rural): math 48% / reading 51% proficiency, ranked #22 of 238 in AR (top 9%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 6 active listings in the ZIP; 6 units permitted in Izard County in 2024 (0 in 5+ unit buildings).
• Izard County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $8k; 25% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 78.8% vs local median 3.1% in Melbourne — 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

• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.