Fayetteville or Bentonville
I'm a seasoned investor and agent in Colorado and Texas with SFR, MF, and office buildings in both states. I'm interested in expanding to Arkansas as the markets appear to have higher cap rates and this better cashflow opportunities. Will be using a PM for management as I'm super tied up with management in TX and CO. I'm looking for advice on which of the markets you'd go into and what you'd be looking for in Fayetteville or Bentonville.
I'm sure @Ryan Blackstone could give some great pointers!
I think both markets are booming. With the growth of Bentonville, Rogers, Lowell, Springdale, Pea Ridge, Fayetteville, etc. At some point in the near future, it will just be 1 large metro. The prices for anything up there is high right now and there are over 1,000 STRs in NWA. I have some property in Fort Smith and up in NWA. Reach out if you want to connect.
Quote from @Cole Thornton:Thanks for the reply Cole! I PM’d you.
I think both markets are booming. With the growth of Bentonville, Rogers, Lowell, Springdale, Pea Ridge, Fayetteville, etc. At some point in the near future, it will just be 1 large metro. The prices for anything up there is high right now and there are over 1,000 STRs in NWA. I have some property in Fort Smith and up in NWA. Reach out if you want to connect.
@Scott Weaver Hey Scott, send me a message if you'd like any info. I moved from Colorado 7 years ago and have been investing in NWA since. I've also got my real estate license if you're needing help here
https://nwacouncil.org/2023/05... This article shows that 36 people are moving to the area per day. "If the region keeps adding 36 people a day, it will reach 600,000 residents in January 2025."
Still lots of deals to be had. Especially in some of the smaller towns that are on the edge of the metro. Let me know if anyone would like to partner up and work on a deal as I have boots on the ground.
@Scott Weaver depends on your strategy. You'll probably be able to find slightly better commercial deals in Fayetteville, but I suspect a bit higher appreciation in Bentonville if you're sticking with SFR. I agree with previous poster that it's all turning into one huge metro where the numbers are going to start to blend together.
Thanks @Billy Daniel for thinking of me. Sorry it has taken so long for me to post. @Scott Weaver to be honest, it depends on what you are looking for, however, Fayetteville and Bentonville both are like our flagship towns. For appreciation, that is where I would go. All boats rise with the tide, and so Springdale and Rogers will rise with Bentonville and Fayetteville. They are traditionally cheaper, but still can get great rents there. The best deals in my opinion are the mom and pop sellers with tons of deferred maintenance and cap ex. Once you make them fresh and clean, then you are golden! we have 1.5% vacancy!!!!!! WE need to raise those rents!
If you are looking for higher cap rates and cash flow more likely to find in Fayetteville. I personally invest in Benton county (Rogers, Centerton, Bentonville) for more appreciation. All the submarkets in NWA offer something unique and different just make sure checking comps relative to the area you are investing in and income levels in 1 to 3 mile radius as they can change depending
There is a lot of potential in either location! Don't worry as much about cap rates as you do forced appreciation. :)
The Stabilized yield on cost is perhaps one of - if not the most important metric when underwriting real estate.