137 County Road 765

Brookland, AR 72417

$560,000D-

7 bd · 2.5 ba · 2,234 sqft · Built 2013 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,725/mo
• Mortgage (P&I): −$2,937
• Tax + insurance: −$658
• HOA: −$0
• Vac / Maint / Mgmt: −$362
• Net cashflow: $-2,232/mo
• Annual: $-26,784/yr
• Cap rate: 1.65%
• Cash-on-cash: -16.57%
• DSCR: 0.26
• 1% rule: 0.31%
• Cash to close: $156,800

Investor read

• This is a 7-bed/2.5-bath single-family listed at $560k.
• At list price, monthly cash flow is $-2k ($-27k/yr) — negative.
• To cash-flow at today's rent, offer at most $166k (70.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (69.2% below list).
• It's been on market 73 days — a 6% lower offer ($526k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $166k (70.4% below list) — sets the bar for cash-flow.
• In year one you build about $60k of equity ($4k loan paydown + $56k appreciation (10.0% local appreciation)).
• Location reads 70/100 on livability (#57 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D, amenities F, commute F.
• Brookland School District (suburban): math 45% / reading 39% proficiency, ranked #47 of 238 in AR (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Brookland Elementary School (875 students, 32% FRL); Brookland Junior High School (math 36% / reading 46%, grade F, #83 of 201 statewide, top 44%, 718 students, 26% FRL); Brookland High School (math 22% / reading 37%, grade F, #142 of 292 statewide, top 53%, 589 students, 27% FRL) — zoned schools at 28% FRL track the district average.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 118 active listings in the ZIP; 926 units permitted in Craighead County in 2024 (69 in 5+ unit buildings).
• Craighead County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 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 $245k; list at $560k implies a 129% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$96k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; moderate wildfire risk; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.7% vs local median 4.2% in Brookland — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 73 days. Have you received any prior offers? Is the seller open to a 70% concession, seller financing, or rate buy-down credit?
• 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.
• 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.