10955 U.S. 79

Moro, AR 72368

$78,000B-

3 bd · 1.0 ba · 1,470 sqft · Built 1992 · Other · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,151/mo
• Mortgage (P&I): −$409
• Tax + insurance: −$255
• HOA: −$0
• Vac / Maint / Mgmt: −$242
• Net cashflow: $245/mo
• Annual: $2,940/yr
• Cap rate: 11.99%
• Cash-on-cash: 20.34%
• DSCR: 1.91
• 1% rule: 1.48%
• Cash to close: $21,840

Investor read

• This is a 3-bed/1.0-bath other listed at $78k. Condition is rated poor.
• At list price, monthly cash flow is $245 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $78k).
• It's been on market 35 days — a 3% lower offer ($76k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $76k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.5%/yr); year-one equity from $539 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 57/100 on livability (#338 in AR) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D, schools F, crime F.
• Lee County School District (town): math 8% / reading 9% proficiency, ranked #235 of 238 in AR (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 96% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 5 active listings in the ZIP; 1 units permitted in Lee County in 2024 (0 in 5+ unit buildings).
• Lee County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-1.5% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% 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's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• Crime grade is F 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?
• 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 — Aerial view suggests a lack of proper roof coverage.
• Major: exterior walls — Weathered appearance suggests significant damage or wear.
• Major: HVAC system — Listing mentions a need for a new air unit, indicating a major issue with the current system.
• Major: landscaping — Sparse and minimal landscaping suggests a need for significant improvement.
• Major: perimeter fencing — No fencing is visible, indicating a need for perimeter security and property definition.