5873 Highway 90 W

Pocahontas, AR 72455

$192,000D

3 bd · 1.5 ba · 1,654 sqft · Built 1970 · SingleFamily · Active · 96 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,361/mo
• Mortgage (P&I): −$1,007
• Tax + insurance: −$127
• HOA: −$0
• Vac / Maint / Mgmt: −$286
• Net cashflow: $-58/mo
• Annual: $-699/yr
• Cap rate: 5.93%
• Cash-on-cash: -1.30%
• DSCR: 0.94
• 1% rule: 0.71%
• Cash to close: $53,760

Investor read

• This is a 3-bed/1.5-bath single-family listed at $192k.
• At list price, monthly cash flow is $-58 ($-699/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (5.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $136k (29.1% below list).
• It's been on market 96 days — a 9% lower offer ($175k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $136k (29.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#37 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D, employment D, crime F.
• Pocahontas School District (rural): math 29% / reading 27% proficiency, ranked #165 of 238 in AR (top 69%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Alma Spikes Elementary School (645 students, 67% FRL); Pocahontas Junior High School (math 27% / reading 31%, grade F, #146 of 201 statewide, top 74%, 503 students, 53% FRL); Pocahontas High School (math 17% / reading 32%, grade F, #187 of 292 statewide, top 70%, 411 students, 47% FRL).
• Market conditions: 77 active listings in the ZIP; 6 units permitted in Randolph County in 2024 (5 in 5+ unit buildings).
• Randolph County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• Current owner paid $80k; list at $192k implies a 140% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 4.6% in Pocahontas — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 96 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?