1805 Bugg St

Pea Ridge, AR 72751

$308,445C-

4 bd · 2.0 ba · 1,550 sqft · Built 2026 · Land · Pending · 217 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,203/mo
• Mortgage (P&I): −$1,618
• Tax + insurance: −$184
• HOA: −$0
• Vac / Maint / Mgmt: −$463
• Net cashflow: $-61/mo
• Annual: $-733/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.85%
• DSCR: 0.96
• 1% rule: 0.71%
• Cash to close: $86,365

Investor read

• This is a 4-bed/2.0-bath land listed at $308k.
• At list price, monthly cash flow is $-61 ($-733/yr) — negative.
• To cash-flow at today's rent, offer at most $298k (3.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (28.6% below list).
• It's been on market 217 days — a 12% lower offer ($271k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $220k (28.6% below list) — sets the bar for 1% rule.
• In year one you build about $25k of equity ($2k loan paydown + $23k appreciation (7.5% local appreciation)).
• Location reads 67/100 on livability (#98 in AR) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living A-; Watch: amenities F, commute F.
• Pea Ridge School District (suburban): math 43% / reading 42% proficiency, ranked #43 of 238 in AR (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pea Ridge Primary School (575 students, 36% FRL); Pea Ridge Middle School (math 47% / reading 42%, grade D, #61 of 201 statewide, top 32%, 395 students, 34% FRL); Pea Ridge High School (math 22% / reading 37%, grade F, #142 of 292 statewide, top 53%, 566 students, 24% FRL) — zoned schools at 31% FRL track the district average.
• Market conditions: 433 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 44% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 4,359 units permitted in Benton County in 2024 (402 in 5+ unit buildings).
• Benton County population projected at +56% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• At projected returns (7.5% appreciation + 3.0% rent growth), your $86k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.1% vs local median 3.5% in Pea Ridge — 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 217 days. Have you received any prior offers? Is the seller open to a 29% 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.
• 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.