39 E Club Rd. Rd

Pleasant Plains, AR 72568

$139,900C-

3 bd · 1.0 ba · 1,420 sqft · Built 1980 · SingleFamily · Under Contract · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,199/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $120/mo
• Annual: $1,442/yr
• Cap rate: 7.32%
• Cash-on-cash: 3.68%
• DSCR: 1.16
• 1% rule: 0.86%
• Cash to close: $39,172

Investor read

• This is a 3-bed/1.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $120 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (14.3% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $120k (14.3% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($967 loan paydown + $11k appreciation (7.8% local appreciation)).
• Location reads 60/100 on livability (#259 in AR) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Midland School District (rural): math 19% / reading 28% proficiency, ranked #191 of 238 in AR (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Midland Elementary School (math 22% / reading 27%, grade F, #347 of 454 statewide, top 79%, 277 students, 68% FRL); Midland High School (math 17% / reading 32%, grade F, #187 of 292 statewide, top 70%, 234 students, 58% FRL).
• Market conditions: 19 active listings in the ZIP; 33 units permitted in Independence County in 2024 (24 in 5+ unit buildings).
• At projected returns (7.8% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.