1004 Herpel Rds

Mountain View, AR 72560

$110,000D

1 bd · 1.0 ba · 702 sqft · Built 2006 · SingleFamily · Active · 118 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $795/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$81
• HOA: −$0
• Vac / Maint / Mgmt: −$167
• Net cashflow: $-29/mo
• Annual: $-353/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.15%
• DSCR: 0.95
• 1% rule: 0.72%
• Cash to close: $30,800

Investor read

• This is a 1-bed/1.0-bath single-family listed at $110k.
• At list price, monthly cash flow is $-29 ($-353/yr) — negative.
• To cash-flow at today's rent, offer at most $105k (4.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $79k (27.7% below list).
• It's been on market 118 days — a 9% lower offer ($100k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (27.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $761 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#316 in AR) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime D-, amenities F, commute F.
• Mountain View School District (rural): math 34% / reading 41% proficiency, ranked #107 of 238 in AR (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mountain View Elem. School (math 42% / reading 32%, grade F, #229 of 454 statewide, top 54%, 491 students, 99% FRL); Mountain View Middle School (math 36% / reading 42%, grade F, #102 of 201 statewide, top 52%, 369 students, 99% FRL); Mountain View High School (math 22% / reading 47%, grade F, #92 of 292 statewide, top 37%, 319 students, 99% FRL) — zoned schools average 99% FRL vs 54% district-wide (45 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 165 active listings in the ZIP; 2 units permitted in Stone County in 2024 (0 in 5+ unit buildings).
• Stone County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $45k; list at $110k implies a 144% gain — meaningful room to come down on a strong offer.
• Cap rate 6.0% vs local median 2.3% in Mountain View — 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 118 days. Have you received any prior offers? Is the seller open to a 28% 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.
• 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?
• 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.