405 W Jefferson St

Gould, AR 71643

$129,000D+

3 bd · 3.0 ba · 3,282 sqft · Built 1978 · SingleFamily · Active · 130 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,320/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$580
• HOA: −$0
• Vac / Maint / Mgmt: −$277
• Net cashflow: $-213/mo
• Annual: $-2,560/yr
• Cap rate: 8.28%
• Cash-on-cash: 7.08%
• DSCR: 1.32
• 1% rule: 1.02%
• Cash to close: $36,120

Investor read

• This is a 3-bed/3.0-bath single-family listed at $129k.
• At list price, monthly cash flow is $-213 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $91k (29.2% below list).
• Meets the 1% rule at list price ($1k rent vs $129k).
• It's been on market 130 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $91k (29.2% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($892 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 55/100 on livability (#400 in AR) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime F, amenities F, commute F.
• Dumas School District (town): math 16% / reading 24% proficiency, ranked #215 of 238 in AR (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Central Elementary School (238 students, 100% FRL); Dumas Junior High School (math 24% / reading 35%, grade F, #144 of 201 statewide, top 72%, 236 students, 100% FRL); Dumas High School (math 8% / reading 22%, grade F, #261 of 292 statewide, top 90%, 314 students, 100% FRL) — zoned schools average 100% FRL vs 75% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 5 active listings in the ZIP; 4 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts 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.
• Current owner paid $78k; list at $129k implies a 65% gain — meaningful room to come down on a strong offer.
• By year 7, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 130 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 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?