201 White Hall

White Hall, AR 71602

$1,650,000C

48 bd · 0.0 ba · 8,386 sqft · Built 1973 · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,722/mo
• Mortgage (P&I): −$8,653
• Tax + insurance: −$1,701
• HOA: −$0
• Vac / Maint / Mgmt: −$3,722
• Net cashflow: $3,646/mo
• Annual: $43,755/yr
• Cap rate: 8.94%
• Cash-on-cash: 9.47%
• DSCR: 1.42
• 1% rule: 1.07%
• Cash to close: $462,000

Investor read

• This is a 24 × 2-bed/1-bath units multifamily listed at $1.65M.
• At list price, monthly cash flow is $4k ($44k/yr) — positive. Per door: $152/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($18k rent vs $1.65M).
• It's been on market 20 days — a 2% lower offer ($1.63M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.63M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $50k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#20 in AR) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• White Hall School District (rural): math 36% / reading 38% proficiency, ranked #86 of 238 in AR (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Taylor Elementary School (math 37% / reading 47%, grade F, #173 of 454 statewide, top 43%, 387 students, 62% FRL); White Hall Junior High School (math 40% / reading 39%, grade F, #92 of 201 statewide, top 50%, 703 students, 54% FRL); White Hall High School (math 23% / reading 34%, grade F, #157 of 292 statewide, top 54%, 969 students, 53% FRL) — zoned schools average 56% FRL vs 36% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 93 active listings in the ZIP; 62 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• Jefferson County population projected at -33% 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 $1.20M; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.9% vs local median 3.9% in White Hall — 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

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1973 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.