Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
Hello BP Community:
My partner and I are looking at the rental market in the following areas:
Lawton, OK
Little Rock, AR
Fayetteville, AR
Texarkana, AR
Hot Springs, AR
Looking for feedback from anybody who has considered these markets or is already in these markets. We are finding a lot of opportunities with SFR and a few duplexes at very affordable pricing and $650+ rents (Over 1% rule). We have connected with a few wholesalers who are going to be sending properties our way.
In running the numbers, I'm coming up with 11%+ COC each year with cash purchase.
I've noticed a lot of VACANT properties sitting on the market, so not sure why.
Grew up in SW Arkansas, between Hot Springs and Texarkana. Lived in Little Rock for a number of years.
Little Rock is a mixed bag. You need to really know the area to know what you're getting. As far as crime ridden areas: Avoid the "tree" streets or numbered streets, basically the interior of the city. West LR, past I-630, is a good area. Sherwood, a suburb of NLR, is a good area for rentals, and also closer to military bases. Whether that's good or bad is debatable.
If you're considering Fayetteville, I'd recommend including Springdale and Bentonville (Walmart HQ) in your search as well. Both of them are based for many Walmart suppliers.
Fort Smith, also in the NW corner has seen considerable growth and is attracting a lot of residents. It has everything: jobs, industry, military, easy access to all of the outdoor things that make Arkansas "the Natural State", and most importantly, is within driving distance to Fayetteville for a Razorbacks game!
Hot Springs doesn't really have a whole lot going for it except for the Oaklawn horse racing / casino resort expansion. It's more of a tourist town but there are retirees along Lake Hamilton. If you're into condos, that might be worth looking into.
Texarkana has seen some growth as well, but I would recommend Fort Smith over it. Have to be sure which state you're actually in there too! The the TX/AR state line runs through the city. The US district court house and post office was built on the line and serves both TX and AR. :)
Im currently living in Alabama but will be moving back to central Arkansas around May/June next year if you need eyes/ears on the ground. My SO is also a contractor so we'll be moving his construction/rehab business too.
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
6y
@Jeff Petsche I can speak to Oklahoma City, but not sure if that's too far out for you. $650/month, 1% rule hitting rentals are here and occupied. I've not seen an overwhelming vacancy. We factor vacancy at 5%. I'm curious what people in Lawton factor at?
Flipper/Rehabber · Edmond, OK · Member since 2016 · 209 posts · 107 votes
6y
@Jeff Petsche
Lawton is a rough area. Investors I know have tested that area, from SFH to 16 units complex. The consensus seems the same, junk. High vacancy and trashed units after every move out/eviction. The price points their are very tempting, however I believe it's with reason.
New to Real Estate · Tampa Bay Area, FL · Member since 2019 · 5 posts · 2 votes
6y
@Rob Terpilowski Newbie here. Wouldn’t that list be for appreciation value? Like you shouldn’t buy in those areas if you’re looking to fix and flip? Or would it be better for rentals since a lot of people are going into foreclosure and are underwater in their mortgage?
Investor · Orem, UT · Member since 2015 · 14 posts · 4 votes
6y
I'm a current investor in Oklahoma City area. I would imagine that Lawton is as described. Military town and I don't think there is much growth.
On a different note, does anyone know any good commercial brokers in OKC? I'm trying to get into bigger apartment complexes, 20+ units, but not much good inventory on loopnet at least which I know is not the best. I'm looking for a good commercial broker that moves a lot of product in OKC.
Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
6y
@Hadar Orkibi yes my partner and I have identified our strategy regarding buy/hold properties and property criteria. We are open to turn key as well as BRRRR. If we buy/rehab/rent, then we will spend some time in the identified market to develop a team.
All cash purchase upon acquisition up to $60K. If more than $60K, then 25% down financing. Lenders are in place.
Partner already has rentals in DFW and we are now looking to rinse and repeat that buy/hold system, but in another market because of the barrier of entry in DFW is getting outside our criteria.
Grew up in SW Arkansas, between Hot Springs and Texarkana. Lived in Little Rock for a number of years.
Little Rock is a mixed bag. You need to really know the area to know what you're getting. As far as crime ridden areas: Avoid the "tree" streets or numbered streets, basically the interior of the city. West LR, past I-630, is a good area. Sherwood, a suburb of NLR, is a good area for rentals, and also closer to military bases. Whether that's good or bad is debatable.
If you're considering Fayetteville, I'd recommend including Springdale and Bentonville (Walmart HQ) in your search as well. Both of them are based for many Walmart suppliers.
Fort Smith, also in the NW corner has seen considerable growth and is attracting a lot of residents. It has everything: jobs, industry, military, easy access to all of the outdoor things that make Arkansas "the Natural State", and most importantly, is within driving distance to Fayetteville for a Razorbacks game!
Hot Springs doesn't really have a whole lot going for it except for the Oaklawn horse racing / casino resort expansion. It's more of a tourist town but there are retirees along Lake Hamilton. If you're into condos, that might be worth looking into.
Texarkana has seen some growth as well, but I would recommend Fort Smith over it. Have to be sure which state you're actually in there too! The the TX/AR state line runs through the city. The US district court house and post office was built on the line and serves both TX and AR. :)
Im currently living in Alabama but will be moving back to central Arkansas around May/June next year if you need eyes/ears on the ground. My SO is also a contractor so we'll be moving his construction/rehab business too.
Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
6y
@Jeff Petsche Fayetteville is a strong market and the surrounding communities. Maybe connect with @Henry Washington as he has his ear to the ground on properties in the area.
Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
6y
@Jeff Petsche you do need to know where to buy in the LR metro area, some areas are better then others.
1% is achievable also through e Turn Key provider. if you want TK talk to @Alex Craig
If you want to buy and do BRRRR then you need to be prepared to do it yourself and build team on the ground etc. which is going to take time, and commitment to know the market.
Rental Property Investor · Missoula, MT · Member since 2018 · 66 posts · 38 votes
6y
We live in California and invest in Little Rock. We primarily chose that market because of the price point, BRRR/cashflow potentional and we lived there for 5 years giving us enough familiarity with the area to ask the right questions and know the general neighborhoods that we wanted to invest in. Our primary residence turned rental has had good renters and low turnover (2 tenants since 2011). That property is in the suburb Cabot with good schools and close to the Air Force base but little to no appreciation. For investing, we're focusing closer to the city. We just closed on a short sale in North Little Rock yesterday! NRL is definitely hit or miss for our criteria. Because of this, we confirmed our thoughts with our realtor and a property manager that has definite criteria in what they'll manage. We only moved forward after their green light. Feel free to reach out if you decide to invest in Little Rock metro or have any specific questions. I worked downtown with 30+ co-workers that relocated from out of state so everyone was chatting about their experiences etc and my husband worked at the Air Force Base. We also still have contacts in the area.