Investing In Little Rock

6 Replies

I posted a few weeks ago that my wife and I would be moving to the Little Rock/Pine Bluff area due to a job relocation. We have finally moved and are starting to settle in. We are interested and eager to start investing in the Little Rock area. We currently invest in the Cincinnati area and are looking for new properties there as well. We own 2 duplexes and 1 SFR.

We are currently looking for properties in the Maumelle and North Little Rock areas. Our focus will be on SFR's or small multi's that cash flow. Ideal price would be in the $75-100k range or possibly lower depending on on how much work is needed to prepare it to be a rental.

Where are others investing in the Little Rock area?  What areas should we stay away from? South of 630 seems to be where everyone says to avoid.  We are looking for neighborhoods where rent is around $800+.  I think that is where the tenants begin to change and you have a better chance of getting a quality tenant for a longer period.  How are vacancy rates? We are also trying to find good property manager to answer some detailed questions about the area.  

We are looking to network with like minded people and plan to attend real estate meetups in Little Rock and Hot Springs.  We look forward to meeting other BP'ers at these events.  

Thanks in advance for any insight!

@Brian Gerlach since I am just beginning to learn the market in and around Little Rock I do not personally know anyone who is doing the BRRRR strategy. I am sure it's occurring but will know more when I attend local meetups.

Yes, we are able to BRRRR here. As long as your numbers work for it, you can do it anywhere as far as I can tell.

Where are others investing in the Little Rock area? What areas should we stay away from? South of 630 seems to be where everyone says to avoid. We are looking for neighborhoods where rent is around $800+. I think that is where the tenants begin to change and you have a better chance of getting a quality tenant for a longer period. How are vacancy rates? We are also trying to find good property manager to answer some detailed questions about the area. 

What do you want to invest in? All of my LR properties are south of 630. Many of them are south of 30. A 3-bedroom in 72209 will rent for $800 if it's in good condition. Vacancy rates are largely fantastically low, if the rent is at the right rate. 

@Rachel Fazio We are looking mostly for SFR's or small multi's. Small multi's seem to be hard to come by or above what I would pay for them. SFR's would probably be our focus and I am currently looking for a property manager to discuss opportunities with. Our realtor knows someone that buys and renovates houses in the North Little Rock area. We have driven many neighborhoods in North Little Rock around 51st street (the entire area), Tanglewood and Lakewood areas. Maumelle seems like a good place but the price seems slightly high for the rent but would not mind finding a fixer upper. We would like to stay in the $800-1,000 rent range since we have noticed that this range is fairly easy to find good tenants in the Cincinnati area so I would assume it would be somewhere in the same range for LR. We are actively looking since we have cash and are able to save enough each month to purchase a $75-100k property every 4-5 months.

Hey @Jeremiah Cotner - yes, I saw where you mentioned about SFHs, I guess I was asking more what class you are interested in, but I'm guessing from what you're saying you're looking for B/B+? 

If you want to just close your eyes and throw a dart at a map and invest there, yes, north of 630 (but south of the river) is a good area. But here in the LR area, we have better and worse neighborhoods scattered throughout. Right around University, the Broadmoor neighborhood, is revitalizing right now because it's an "opportunity zone" for instance. That's south of 630 and, depending on exactly which part you're looking at, a lot of that area is class B. 

@Rachel Fazio I would say C+ to B- primarily but a B area would work if I was able to find a property for the right price.  

I really don't want to close my eyes and just pick a neighborhood.  I would like to become very familiar with a few key areas in order to purchase properties there and help bring the neighborhood/area up.  I have been doing a lot of driving around on the weekends to look at properties/areas and will be attending some meet ups in the coming weeks to network with others.  

If you ever have an opportunity to talk, I would greatly appreciate your input on the area and understand what you invest in.  On the flip side, if you ever need any help with anything  don't hesitate to reach out. 

 

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