8500 Sagamore Loop

Valley Springs, AR 72601

$110,000B

3 bd · 1.0 ba · 1,144 sqft · Built — · SingleFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,160/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$95
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $244/mo
• Annual: $2,927/yr
• Cap rate: 8.95%
• Cash-on-cash: 9.50%
• DSCR: 1.42
• 1% rule: 1.05%
• Cash to close: $30,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $110k.
• At list price, monthly cash flow is $244 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).
• It's been on market 41 days — a 3% lower offer ($107k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.9%/yr); year-one equity from $761 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#225 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, employment B; Watch: crime F, amenities F, commute F.
• Valley Springs School District (rural): math 56% / reading 55% proficiency, ranked #7 of 238 in AR (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Valley Springs Elem. School (math 52% / reading 42%, grade D-, #119 of 454 statewide, top 28%, 350 students, 49% FRL); Valley Springs Middle School (math 62% / reading 56%, grade B, #13 of 201 statewide, top 7%, 235 students, 44% FRL); Valley Springs High School (math 47% / reading 67%, grade C, #6 of 292 statewide, top 2%, 267 students, 37% FRL).
• 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.
• Current owner paid $35k; list at $110k implies a 214% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.9% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~10 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.