426 Polk Road 117

Mena, AR 71953

$126,000F

2 bd · 1.0 ba · 896 sqft · Built 2002 · Manufactured · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $899/mo
• Mortgage (P&I): −$661
• Tax + insurance: −$210
• HOA: −$0
• Vac / Maint / Mgmt: −$189
• Net cashflow: $-161/mo
• Annual: $-1,929/yr
• Cap rate: 4.76%
• Cash-on-cash: -5.47%
• DSCR: 0.76
• 1% rule: 0.71%
• Cash to close: $35,280

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $126k.
• At list price, monthly cash flow is $-161 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $103k (18.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $90k (28.7% below list).
• It's been on market 88 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $90k (28.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.2%/yr); year-one equity from $871 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#142 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D, amenities F, commute F.
• Ouachita River School District (rural): math 30% / reading 35% proficiency, ranked #140 of 238 in AR (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Acorn Elementary School (math 42% / reading 32%, grade F, #229 of 454 statewide, top 54%, 342 students, 74% FRL); Acorn High School (math 27% / reading 42%, grade F, #92 of 292 statewide, top 37%, 293 students, 62% FRL).
• Market conditions: 207 active listings in the ZIP; 4 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 4y ago 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.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% vs local median 3.0% in Mena — 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

• 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 88 days. Have you received any prior offers? Is the seller open to a 29% 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.
• 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 D 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?
• 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.