8714 Harvard Dr

Fort Smith, AR 72908

$1F

3 bd · 2.0 ba · 1,795 sqft · Built 1979 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,516/mo
• Mortgage (P&I): −$1,271
• Tax + insurance: −$404
• HOA: −$0
• Vac / Maint / Mgmt: −$318
• Net cashflow: $-477/mo
• Annual: $-5,720/yr
• Cap rate: 3.93%
• Cash-on-cash: -8.43%
• DSCR: 0.62
• 1% rule: 0.63%
• Cash to close: $67,851

Investor read

• This is a 3-bed/2.0-bath single-family listed at $1.
• At list price, monthly cash flow is $-477 ($-6k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $1).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• 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 (#151 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.
• Fort Smith School District (urban): math 35% / reading 39% proficiency, ranked #106 of 238 in AR (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Cavanaugh Elementary School (math 57% / reading 52%, grade C, #60 of 454 statewide, top 15%, 310 students, 66% FRL); L. A. Chaffin Jr. High School (math 53% / reading 65%, grade B, #13 of 201 statewide, top 7%, 725 students, 54% FRL); Southside High School (math 36% / reading 53%, grade F, #31 of 292 statewide, top 12%, 1,956 students, 47% FRL).
• Zoned-school proficiency averages 53% at this address vs 37% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Fort Smith School District average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 363487.5% of price.
• Market conditions: 97 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 388 units permitted in Sebastian County in 2024 (16 in 5+ unit buildings).
• Sebastian County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.