Investing in Little Rock, AR?

Question

Hello all,

Does it make any sense to invest in SFR in Little Rock, AR? The city is growing, though slower than CA, TX, or FL.

I am considering a new house in a south neighborhood. Numbers are not high but make sense. Buy for around 90K. Not much haggling with the contractor, the price is pretty much set. Rent is around $1,000. Insurance should be low.

It would be helpful to hear from local investors.

Thomas Chapin · Answer

Good morning, SWLR can be a block by block judgement call. In that area we are not putting any stock in the appreciation basket, but we are seeing demand for our renovated houses at market rent. I'd be happy to share numbers or what we are seeing there now if you want to contact me about a particular neighborhood.

Andrew Johnson · Answer

From what I found investing around in the suburbs around Little Rock is that you won't get the huge swings that you'll find in CA (where I live), TX, FL, etc.  Those markets climb higher during the highs and crash harder during the lows.  Not to mention for $90K you won't even be able to get a studio condo in California, the market is just a different and not a great analogue for practicality.  Property tax vs. some locations (like Texas) can also be advantageous if you're trying to see if things will pencil out on a buy-and-hold strategy.

Dennis P. · Answer

Morning, Thomas! Thanks for your response. You specialization is right on topic. Even though I already have a friend who is RE agent, I maybe looking for PM companies. Do you have any recommendations?