53 Woodsdale Dr #1

Holiday Island, AR 72631

$175,000D

3 bd · 2.0 ba · 1,488 sqft · Built 1980 · Condo · Active · 338 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,363/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$292
• HOA: −$200
• Vac / Maint / Mgmt: −$286
• Net cashflow: $-333/mo
• Annual: $-3,992/yr
• Cap rate: 4.01%
• Cash-on-cash: -8.15%
• DSCR: 0.64
• 1% rule: 0.78%
• Cash to close: $49,000

Investor read

• This is a 3-bed/2.0-bath condo listed at $175k.
• At list price, monthly cash flow is $-333 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $127k (27.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $136k (22.1% below list).
• It's been on market 338 days — a 12% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $127k (27.5% below list) — sets the bar for cash-flow.
• In year one you build about $14k of equity ($1k loan paydown + $13k appreciation (7.3% local appreciation)).
• Location reads 67/100 on livability (#104 in AR) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Eureka Springs School District (rural): math 37% / reading 46% proficiency, ranked #61 of 238 in AR (top 26%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Eureka Springs Elem. School (math 47% / reading 42%, grade F, #143 of 454 statewide, top 36%, 227 students, 66% FRL); Eureka Springs Middle School (math 37% / reading 42%, grade F, #92 of 201 statewide, top 50%, 212 students, 64% FRL); Eureka Springs High School (math 27% / reading 52%, grade F, #48 of 292 statewide, top 19%, 222 students, 51% FRL).
• Market conditions: 372 active listings in the ZIP; 30 units permitted in Carroll County in 2024 (0 in 5+ unit buildings).
• Carroll County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $10k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $150k; 17% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.0% vs local median 2.2% in Holiday Island — 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 338 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?