814 Heber Springs Rd

Southside, AR 72501

$140,000D

3 bd · 1.0 ba · 946 sqft · Built 2024 · SingleFamily · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,091/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$94
• HOA: −$0
• Vac / Maint / Mgmt: −$229
• Net cashflow: $33/mo
• Annual: $396/yr
• Cap rate: 6.58%
• Cash-on-cash: 1.01%
• DSCR: 1.04
• 1% rule: 0.78%
• Cash to close: $39,200

Investor read

• This is a 3-bed/1.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $33 ($396/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $109k (22.1% below list).
• It's been on market 89 days — a 6% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $109k (22.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#216 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B; Watch: employment C-, amenities F, commute F.
• Batesville School District (rural): math 36% / reading 38% proficiency, ranked #104 of 238 in AR (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Eagle Mountain Magnet School (math 52% / reading 41%, grade D-, #129 of 454 statewide, top 29%, 903 students, 54% FRL); Batesville Junior High School Charter (math 35% / reading 38%, grade F, #115 of 201 statewide, top 58%, 772 students, 53% FRL, charter); Batesville High School (math 21% / reading 37%, grade F, #156 of 292 statewide, top 53%, 973 students, 45% FRL, charter) — zoned schools at 51% FRL track the district average.
• Market conditions: 176 active listings in the ZIP; 33 units permitted in Independence County in 2024 (24 in 5+ unit buildings).
• 6 sale attempts since 3y 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: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.6% vs local median 4.8% in Southside — 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

• It's been on market 89 days. Have you received any prior offers? Is the seller open to a 22% 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.
• 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.