Buying property in Little Rock, AR 72204

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Buying property in Little Rock, AR 72204

Alvin P.
Investor · Singapore, Singapore · Member since 2015 · 17 posts · 7 votes

Anyone know much about this zip code? - Little Rock, AR 72204

I'm in situation where the turnkey management company that I've approached is claiming that this property is a solid neighbourhood, but of course I'm taking it with a pinch of salt. I've poked around, and it looks like they just bought it a few months ago for about $50K and are now marketing it as close to double the price, after re-doing up the place with brand new fittings.

Because of the brand new fittings, the company is estimating rent to be about $1000/month, which seems "way too high" (as per rentometer.com), but they claim that there is an approved tenant moving in soon.

Is this typical of everyone's experience with turnkey companies? Are there questions that I should be asking?

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    11y

    @Alvin P.

    Can you provide the property address so others who might be familiar with the area can give you an honest opinion?

    Thanks

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
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  • Fred Heller
    Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
    11y

    There's not enough info to give an opinion. Just for grins I pulled up the rentals in 72204. There are some for over $1000 but most are well under that amount. 72204 runs from I-630 to I-430. The more expensive rentals in that zip ($1400-ish) appear to be newer construction closer to I-430. To get a better opinion, you would have to compare the target property with other properties in the immediate area, not in the zip code in general.

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  • Kristi Patton
    Little Rock, AR · Member since 2014 · 21 posts · 7 votes
    11y
    Alvin P. What is the street name or neighborhood? LR is not that big so I should be able to tell you something...
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  • Alvin P.
    OP
    Investor · Singapore, Singapore · Member since 2015 · 17 posts · 7 votes
    11y

    Ah I see - okay, it's on Berkshire Dr. Thanks for all your input!

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  • Eric Metz
    Real Estate Investor · Little Rock, AR · Member since 2013 · 126 posts · 65 votes
    11y

    Alvin,

    I followed your other post and had wrote a lengty reply to this one only to have my browser freeze up and lose it all. Contact me directly on here and I'd be more than happy to share my experiences with the multiple properties I've wholesaled in that zip. Verify the seller as a turnkey provider by asking for references from other investors and examples before putting too much weight on what they say.

    Also you should be telling them if it's a deal and not the other way around ;) 

    Cheers

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  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    11y

    Hi Alvin -- I sent you a PM on this.  I have sold properties in Memphis, then checked Rent-O-Meter a few months later, only to find out that the rent on the property I sold was inaccurate.  Craigslist is the best way to find comps as the ads for the most part are up to date.  In Memphis, 85% of our leads come from Craigslist, that is why we use high res, wide angle lens pictures on our ads.  Shoot me a email and I will send you a Zillow report. 

    Full Disclosure: Alvin is considering the Berkshire purchase with my company.

    901-848-9028
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