68 Davis Dr

Melbourne, AR 72556

$60,000A-

3 bd · 2.0 ba · 1,248 sqft · Built 2005 · Manufactured · Under Contract · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,094/mo
• Mortgage (P&I): −$315
• Tax + insurance: −$36
• HOA: −$0
• Vac / Maint / Mgmt: −$230
• Net cashflow: $514/mo
• Annual: $6,171/yr
• Cap rate: 16.58%
• Cash-on-cash: 36.73%
• DSCR: 2.63
• 1% rule: 1.82%
• Cash to close: $16,800

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $60k.
• At list price, monthly cash flow is $514 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 73 days — a 6% lower offer ($56k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $56k (6.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($415 loan paydown + $1k appreciation (2.2% 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: 66 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 $50k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (2.2% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~3 years — 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 16.6% vs local median 3.4% 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

• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 6% 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.
• 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.