Memphis VS Little Rock

[Mario Am]

Any investors that are exprienced in both markets? What is the advantages and disadvantages for both markets? if you would to choose one which one will it be?

Looking to rent and hold and to get as much cashflow possible for my dollar.

thanks in advance!

[Chris Clothier]

Originally posted by @Mario Am:

Any investors that are exprienced in both markets? What is the advantages and disadvantages for both markets? if you would to choose one which one will it be?

Looking to rent and hold and to get as much cashflow possible for my dollar.

thanks in advance!

Mario,

We bought 302 properties in Memphis in 2019 and 149 in Little Rock so we have a bit of experience in each.  I am personally still in favor of Memphis first simply due to its' diversity of job market, but I think Little Rock is a solid city for long-term investment as well.

Little Rock is located almost dead center of the country and 40% of the nations population is within a 500-mile radius.  That makes it a prime market for future growth (there are a lot of other factors that may inhibit this, but its' location is prime for distribution).  The military provides for roughly $800 million in economic impact, but aerospace, energy, health care, education and  manufacturing and distribution make up the bulk of jobs in the area.    Air and spacecraft are the number one export of the area having outgrown agriculture.

Housing is a little on the older side, but well-built and labor is relatively inexpensive meaning that renovation costs can get done quickly and on price.  Average household income is strong and price points are comparable to Memphis as well.  The government provides a majority of the jobs in the Little Rock market.  43% of the population rents and I think the area is super affordable.  

So far, we have had zero issues getting properties occupied with 2-year leases and over 70% of our LR leases extend to beyond 2 years.  We have pressed rents a little higher in the areas with the selling point that we are providing a better renovated property and better experience for the resident.  Again, so far, that has played out exactly as we thought.  Hopefully that is a good start for info on the Little Rock market.  I think it is a great market to head to and going to grow.

As for Memphis, as I stated earlier, I like the Market maybe a slight tick more than Little Rock only because of the diversity of neighborhood, diversity of industry and jobs and we have a longer track record of success in Memphis.  But, I think they are very similar markets and you would be making a smart decision to invest in either market for long-term buy and hold.

Best of luck to you