788 Cr 3456

Clarksville, AR 72830

$156,900D

3 bd · 1.0 ba · 1,236 sqft · Built 1968 · SingleFamily · Active · 211 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,342/mo
• Mortgage (P&I): −$823
• Tax + insurance: −$262
• HOA: −$0
• Vac / Maint / Mgmt: −$282
• Net cashflow: $-24/mo
• Annual: $-290/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.66%
• DSCR: 0.97
• 1% rule: 0.86%
• Cash to close: $43,932

Investor read

• This is a 3-bed/1.0-bath single-family listed at $157k.
• At list price, monthly cash flow is $-24 ($-290/yr) — negative.
• To cash-flow at today's rent, offer at most $153k (2.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (14.5% below list).
• It's been on market 211 days — a 12% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (14.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#141 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: schools D, crime D-, amenities F.
• Clarksville School District (town): math 29% / reading 34% proficiency, ranked #147 of 238 in AR (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 154 active listings in the ZIP; 12 units permitted in Johnson County in 2024 (0 in 5+ unit buildings).
• Johnson County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.1% vs local median 4.6% in Clarksville — 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 211 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• Built in 1968 — 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 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?
• 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?