20 Echo Valley Dr

Holland, AR 72032

$58,000B-

1 bd · 1.0 ba · 500 sqft · Built 2000 · SingleFamily · Under Contract · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $878/mo
• Mortgage (P&I): −$304
• Tax + insurance: −$48
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $342/mo
• Annual: $4,100/yr
• Cap rate: 13.36%
• Cash-on-cash: 25.24%
• DSCR: 2.12
• 1% rule: 1.51%
• Cash to close: $16,240

Investor read

• This is a 1-bed/1.0-bath single-family listed at $58k.
• At list price, monthly cash flow is $342 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($878 rent vs $58k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $401 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#285 in AR) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Mt. Vernon/Enola School District (rural): math 41% / reading 42% proficiency, ranked #48 of 238 in AR (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mt. Vernon/Enola Elem. School (math 42% / reading 42%, grade F, #173 of 454 statewide, top 43%, 307 students, 70% FRL); Mt. Vernon/Enola High School (math 42% / reading 42%, grade F, #38 of 292 statewide, top 14%, 251 students, 55% FRL).
• Market conditions: Rents rising (+1.1%/yr); 186 active listings in the ZIP; 865 units permitted in Faulkner County in 2024 (451 in 5+ unit buildings).
• Faulkner County population projected at +32% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 18y 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.
• Current owner paid $40k; 45% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 1.1% rent growth), your $16k cash investment doubles in ~6 years — after that, you're playing with house money.
• 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.
• This rent is only 16% of the median local income ($65k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• 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.
• 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.