5703 Central Ave

Lake Hamilton, AR 71913

$994,400C+

21 bd · 18.9 ba · 13,846 sqft · Built — · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,990/mo
• Mortgage (P&I): −$5,215
• Tax + insurance: −$1,657
• HOA: −$0
• Vac / Maint / Mgmt: −$2,518
• Net cashflow: $2,600/mo
• Annual: $31,200/yr
• Cap rate: 9.43%
• Cash-on-cash: 11.21%
• DSCR: 1.50
• 1% rule: 1.21%
• Cash to close: $278,432

Investor read

• This is a 7 × 3-bed/?-bath units multifamily listed at $994k. Condition is rated poor.
• At list price, monthly cash flow is $3k ($31k/yr) — positive. Per door: $371/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $994k).
• It's been on market 20 days — a 2% lower offer ($979k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $979k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#296 in AR) — a working-class tenant base; expect higher turnover. Strengths: crime A+, cost of living B; Watch: employment C-, amenities F, commute F.
• Lakeside School District (urban): math 47% / reading 45% proficiency, ranked #28 of 238 in AR (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lakeside Primary School (524 students, 50% FRL) — zoned schools average 50% FRL vs 34% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+6.4%/yr); 986 active listings in the ZIP; 117 units permitted in Garland County in 2024 (24 in 5+ unit buildings).
• Garland County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 8 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.
• At projected returns (-3.0% appreciation + 6.4% rent growth), your $278k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; major wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.4% vs local median 1.1% in Lake Hamilton — 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 $11,990/mo this rent would consume 257% of the median local household income ($56k/yr) (locally 1442% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Severe damage
• Major: exterior siding — Exposed insulation
• Major: flooring — Worn and uneven
• Major: interior walls/paint — Paint peeling and chipping