Fort Smith Arkansas Investors

[Ron Hall]

Hi, are there any bp investors currently investing in the Fort Smith, Arkansas area?

Interest in what the cost of rent and the cash on cash returns are in the area.

Thanks

Ron

[Mike Robberson]

Ok, big caveat here, anytime you speak in generalities, there are always exceptions.  With that said, you generally get better rents south of Rogers Ave.  North of Rogers you find a lot of C- to D class stuff.  South of Rogers you are C+ to B- type properties.  Then, around Fianna Hills or in the new Chaffee Crossing area you get into the A class properties. 

We typically try to stay in the B range. There you can get a 2/1 SFR for 40-50K which will rent for around $500, or a 3/2 for 60-80K which rents for around $700-$800. Again those are really rough ranges but it will give you an idea.

If you go for duplexes or triplexes the rent-to-value ratios get a little better.