2825 E Inwood Ln

Fayetteville, AR 72701

$484,000D

4 bd · 2.5 ba · 2,802 sqft · Built 1975 · SingleFamily · Active · 289 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,935/mo
• Mortgage (P&I): −$2,538
• Tax + insurance: −$626
• HOA: −$0
• Vac / Maint / Mgmt: −$826
• Net cashflow: $-56/mo
• Annual: $-668/yr
• Cap rate: 6.15%
• Cash-on-cash: -0.49%
• DSCR: 0.98
• 1% rule: 0.81%
• Cash to close: $135,520

Investor read

• This is a 4-bed/2.5-bath single-family listed at $484k.
• At list price, monthly cash flow is $-56 ($-668/yr) — negative.
• To cash-flow at today's rent, offer at most $474k (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $393k (18.7% below list).
• It's been on market 289 days — a 12% lower offer ($426k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $393k (18.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#3 in AR, #871 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment D+, crime D-.
• Fayetteville School District (urban): math 50% / reading 49% proficiency, ranked #19 of 238 in AR (top 8%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Root Elementary School (math 72% / reading 67%, grade A-, #9 of 454 statewide, top 3%, 469 students, 13% FRL); Woodland Junior High School (math 63% / reading 64%, grade B+, #5 of 201 statewide, top 3%, 752 students, 26% FRL); Fayetteville High School East (math 41% / reading 50%, grade D-, #24 of 292 statewide, top 9%, 2,685 students, 27% FRL).
• Market conditions: Rents rising (+2.6%/yr); 533 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 3,494 units permitted in Washington County in 2024 (1,497 in 5+ unit buildings).
• Washington County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 7y ago; this cycle's ask has dropped $56k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $400k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 6.2% vs local median 3.5% in Fayetteville — 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.
• At $3,935/mo this rent would consume 85% of the median local household income ($56k/yr) (locally 2582% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 289 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?