Rental Property Investor · Lincoln, NE · Member since 2014 · 3 posts · 0 votes
Hey guys,
I am wondering if there is anyone on here investing in SFR's or small multifamily properties around Fayetteville or northwest Arkansas? I live and invest in Nebraska right now, but love that area. Plus the prices seem to be much lower for much newer properties there. Just wanted to reach out and see how the rental market is down there.
Thanks!
Taylor
I am wondering if there is anyone on here investing in SFR's or small multifamily properties around Fayetteville or northwest Arkansas? I live and invest in Nebraska right now, but love that area. Plus the prices seem to be much lower for much newer properties there. Just wanted to reach out and see how the rental market is down there.
Thanks!
Taylor
Hi Taylor,
I have SFRs in Fayetteville. One is within walking distance of the university and two others are west of I-49. The west side of town is a fast-growing community and there's a nice range of housing types and prices there.
If you check Zillow, you'll see quite a range in rental rates across town. Pet-friendly rentals command a higher rate, btw.The closer you are to the university, the higher the rents seem to be. Older homes are being torn down with high-end units being built in their place. Neighborhoods east and north of the university are becoming a mix of new MFH and homes that were built in the 1940-1970 time period. Too many of the older places show little (if any) evidence of maintenance but are still commanding high prices, just by virtue of being close to campus and near the bus line and Razorback Greenway. Bidding wars tend to erupt when properties around campus come on the market. I found an older 3/2/0 in one of those neighborhoods for $150K that needed a lot of work (problems with roof, plumbing, electrical, etc.); it sold for $350K in "as is" condition.
Every town in NWA has its own vibe. I'd say Fayetteville and Bentonville currently have the highest market rates but it really does vary.
PM if you want a local Realtor contact; I work with an investor-friendly agent who's helped me find/close two houses in the past 18 months.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Taylor Heller Caveat: I invest in Central Arkansas. I think NWA is a better long-term play for economic growth but it’s always struck me as a little bifurcated. You have a couple of “core” areas (example: Fayetteville with the #WPS crowd) that has seen a pretty solid price spike. The new developments that are going up are nice but it’s really pushed cap-rates down. You juxtapose that with Siloam Springs that has much better cap-rates but, whew, is there a lot of land for future growth. I have to wonder about future rent growth in markets like that. Bottom line: you go 20 miles and there are completely different ecosystems. That’s my read on it anyway.
Goshen, AR · Member since 2017 · 267 posts · 159 votes
8y
Taylor Heller prices must be pretty high where you are to say that newer homes are cheaper in this area. We are seeing decent new/updated at around $100/ sq ft and most needing updating around $90/ sq ft... my thought is that it’s hard to cash flow at those numbers. Over here right now everyone’s a flipper and paying WAY to much for property.
It’s a great area with diverse job market but there’s not much appreciation in outlying areas and rent is pretty stagnant except in those “core” areas that Andrew Johnson mentions. If that interests you, keep the questions coming and I’ll tell you what I can.
I am wondering if there is anyone on here investing in SFR's or small multifamily properties around Fayetteville or northwest Arkansas? I live and invest in Nebraska right now, but love that area. Plus the prices seem to be much lower for much newer properties there. Just wanted to reach out and see how the rental market is down there.
Thanks!
Taylor
Hi Taylor,
I have SFRs in Fayetteville. One is within walking distance of the university and two others are west of I-49. The west side of town is a fast-growing community and there's a nice range of housing types and prices there.
If you check Zillow, you'll see quite a range in rental rates across town. Pet-friendly rentals command a higher rate, btw.The closer you are to the university, the higher the rents seem to be. Older homes are being torn down with high-end units being built in their place. Neighborhoods east and north of the university are becoming a mix of new MFH and homes that were built in the 1940-1970 time period. Too many of the older places show little (if any) evidence of maintenance but are still commanding high prices, just by virtue of being close to campus and near the bus line and Razorback Greenway. Bidding wars tend to erupt when properties around campus come on the market. I found an older 3/2/0 in one of those neighborhoods for $150K that needed a lot of work (problems with roof, plumbing, electrical, etc.); it sold for $350K in "as is" condition.
Every town in NWA has its own vibe. I'd say Fayetteville and Bentonville currently have the highest market rates but it really does vary.
PM if you want a local Realtor contact; I work with an investor-friendly agent who's helped me find/close two houses in the past 18 months.
Rental Property Investor · Lincoln, NE · Member since 2014 · 3 posts · 0 votes
8y
Thanks for all the information, everyone! Here in Lincoln, prices for new or almost new homes are in the mid 300k to 400k range or higher now. Not that I am looking for that, but it shows how bubbled our city of 300,000 has become. Thanks again, and I'll be in contact if I am heading down that way anytime soon.
Rental Property Investor · Seattle, WA · Member since 2018 · 50 posts · 15 votes
7y
@Taylor Heller - How did your investing in NWA go? I'm considering starting to invest there as well and would be interested to hear what you've seen and share what I'm seeing and learning.
Is anyone currently investing in NWA? I live in Fayetteville and would like to know if there are any local REIAs or BP meetups. My parents are refinancing their primary home in Bentonville and want to get the equity out to invest in a rental property. Thanks
Realtor · Bentonville Arkansas · Member since 2018 · 11 posts · 5 votes
5y
@Rod Menocal I am a Realtor who is looking into my first investment property in NWA. One thing that I can tell you right up front is that it is very hard to find properties where the numbers make sense currently. Due to fast-rising house prices, and rent prices lagging behind.
Now it is certainly still possible to find a good investment property, but from my experience as soon as one hits the market you and a bunch of other people will jump on it.
In my case, I am just waiting for the right property to come along.
Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
5y
@Rod Menocal Dawn M. is correct. Colby Bowers hosts a Zoom meetup with VPIG. It isn't Arkansas specific, but he invests in Arkansas, and there are other investors there. We haven't really had a BP meetup since covid. We typically have around 25-30ppl show up, and we can't meet anywhere with that size of group yet. Hoping that 2021 will be different.