9 Saotee Trce

Cherokee Village, AR 72529

$79,900B-

2 bd · 1.5 ba · 1,182 sqft · Built 1998 · SingleFamily · Active · 151 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,308/mo
• Mortgage (P&I): −$419
• Tax + insurance: −$133
• HOA: −$50
• Vac / Maint / Mgmt: −$275
• Net cashflow: $431/mo
• Annual: $5,172/yr
• Cap rate: 12.77%
• Cash-on-cash: 23.12%
• DSCR: 2.03
• 1% rule: 1.64%
• Cash to close: $22,372

Investor read

• This is a 2-bed/1.5-bath single-family listed at $80k. Condition is rated poor.
• At list price, monthly cash flow is $431 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).
• It's been on market 151 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $552 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#227 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, housing B+; Watch: amenities F, commute F, employment F.
• Highland School District (town): math 43% / reading 39% proficiency, ranked #66 of 238 in AR (top 28%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cherokee Elementary School (math 58% / reading 40%, grade D, #108 of 454 statewide, top 24%, 594 students, 100% FRL); Highland Middle School (math 41% / reading 36%, grade F, #105 of 201 statewide, top 52%, 492 students, 100% FRL); Highland High School (math 31% / reading 44%, grade F, #62 of 292 statewide, top 21%, 526 students, 100% FRL) — zoned schools average 100% FRL vs 56% district-wide (44 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 806 active listings in the ZIP; lower-income renter base — watch delinquency.
• Fulton County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $20k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $67k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 12.8% vs local median 5.1% in Cherokee Village — 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.
• This rent runs 44% of the median local income ($35k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 151 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Severe weathering
• Major: exterior siding — Significant peeling
• Major: flooring — Damaged carpet
• Major: interior walls — Painted walls with visible damage
• Major: bathrooms — Cluttered and in disrepair
• Major: kitchen — Cluttered and in disrepair