725 W Holt Ave

Harrison, AR 72601

$63,600B+

2 bd · 1.0 ba · 920 sqft · Built — · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $761/mo
• Mortgage (P&I): −$334
• Tax + insurance: −$60
• HOA: −$0
• Vac / Maint / Mgmt: −$160
• Net cashflow: $208/mo
• Annual: $2,490/yr
• Cap rate: 10.21%
• Cash-on-cash: 13.99%
• DSCR: 1.62
• 1% rule: 1.20%
• Cash to close: $17,808

Investor read

• This is a 2-bed/1.0-bath single-family listed at $64k.
• At list price, monthly cash flow is $208 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($761 rent vs $64k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-1.9%/yr); year-one equity from $440 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#52 in AR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Harrison School District (town): math 53% / reading 54% proficiency, ranked #11 of 238 in AR (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 437 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 92 units permitted in Boone County in 2024 (72 in 5+ unit buildings).
• Boone County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-1.9% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 10.2% vs local median 3.0% in Harrison — 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

• 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.