504 W Glazy Peau

Hot Springs, AR 71909

$230,995D

4 bd · 3.0 ba · 1,982 sqft · Built 1976 · SingleFamily · Active · 92 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,912/mo
• Mortgage (P&I): −$1,211
• Tax + insurance: −$385
• HOA: −$0
• Vac / Maint / Mgmt: −$401
• Net cashflow: $-86/mo
• Annual: $-1,033/yr
• Cap rate: 5.85%
• Cash-on-cash: -1.60%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $64,679

Investor read

• This is a 4-bed/3.0-bath single-family listed at $231k. Condition is rated fair.
• At list price, monthly cash flow is $-86 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $219k (5.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $191k (17.2% below list).
• It's been on market 92 days — a 9% lower offer ($210k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $191k (17.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#140 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A-; Watch: crime F, amenities F, commute F.
• Fountain Lake School District (rural): math 43% / reading 40% proficiency, ranked #49 of 238 in AR (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fountain Lake Elementary (math 55% / reading 35%, grade D-, #138 of 454 statewide, top 31%, 514 students, 54% FRL); Fountain Lake Middle School Cobra Digital Prep Academy (math 45% / reading 47%, grade D+, #53 of 201 statewide, top 28%, 429 students, 44% FRL, charter); Fountain Lake Charter High School (math 27% / reading 33%, grade F, #138 of 292 statewide, top 48%, 406 students, 32% FRL, charter) — zoned schools at 43% FRL track the district average.
• Market conditions: 899 active listings in the ZIP; solid renter incomes; 117 units permitted in Garland County in 2024 (24 in 5+ unit buildings).
• Garland County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 2.9% in Hot Springs — 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.
• This rent runs 30% of the median local income ($75k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 92 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1976 — 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 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?

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and worn
• Moderate: bathroom fixtures — outdated and worn
• Minor: landscaping — overgrown lawn