Thoughts on investing in Little Rock

Little Rock, Arkansas
Out of State Investing
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Thoughts on investing in Little Rock

Cindy Shiblie
New to Real Estate · Member since 2024 · 13 posts · 3 votes

I have an opportunity to invest in Little Rock, AR and wanted to get opinions on the area. My biggest sticking point is they have severe weather; floods, hail, tornadoes, etc. I know I can get an insurance plan, but is it worth the headache? Does anyone have any positive or negative experiences?

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Brian TeeterBusiness Member
Little Rock, AR · Member since 2021 · 75 posts · 64 votes
1y

I am a long time Little Rock investor and resident. Happy to help if you need a resource!

501-951-7100
Turnkey Property Management4.8170 Reviews
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  • Cindy Shiblie
    OP
    New to Real Estate · Member since 2024 · 13 posts · 3 votes
    2y

    Thanks for your feedback. I understand the crime concerns, but why do you think traditional financing is risky? Because of the crime?

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  • Cindy Shiblie
    OP
    New to Real Estate · Member since 2024 · 13 posts · 3 votes
    2y
    Quote from @Account Closed:
    Quote from @Cindy Shiblie:

    Thanks for your feedback. I understand the crime concerns, but why do you think traditional financing is risky? Because of the crime?

    Zillow says the average price for a house in Little Rock is $215,000. Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket. Your loan will be $1,100 a month, add insurance and property tax.

    Average rents are $1,250 (Again Zillow) Easily a losing propostion. One broken window, one missed month of rent, one eviction, one stolen refirgerator and so on, and all you've bought is a headache. I don't know how much you will be paying a property manager but add that in. Roof repairs, broken this, broken that. All of a sudden, you bought a painful, costly experience. Flip side, for a third of that you are trained to find properties using creative finance taking over existing low interest loans that cash flow and you are buying in decent neighborhoods with every day lunch box Joes that have kids and go to work and pay rent on time. 

    Not all investing is equal. Even if you aren't into creative finance, stay away from rough neighborhoods. Unless you were raised in or are from one, you have no idea. I spent 5 years tutoring in a 'hood. I know the mindset. I avoid investing in rough neighborhoods because I am a professional. Compare my bottom line to those who claim it's fine to invest where you get a $100 a month cash flow and sometimes actually even get rent. ;-) IMHO
    Thank you so much for your insight. You’ve given me a lot to think about.  I appreciate you taking the time to explain this thoroughly.
    1Reply
  • Devonte KT Sellers
    Real Estate Agent · Member since 2024 · 3 posts · 3 votes
    2y

    Crime in Little Rock is significantly lower than most cities it's the way the city is zoned it looks high based on the old city limits and population. There are neighborhoods not worth investing in but most are fine. East end,  West Little rock, mid town, eagle mountain, Chanel and Pinnacle mountain area are fine. Or just go outside of the city to invest in Cabot, Conway, benton or Sherwood as well.

    2Reply
  • Brian TeeterBusiness Member
    Little Rock, AR · Member since 2021 · 75 posts · 64 votes
    1y

    I am a long time Little Rock investor and resident. Happy to help if you need a resource!

    501-951-7100
    Turnkey Property Management4.8170 Reviews
    View Page
    4Reply
  • Diana Lin
    Investor · Dallas, TX · Member since 2018 · 3 posts · 0 votes
    1y

    Hi @Brian Teeter, I would love to connect. I'm a new investor in the market, I'm looking for reliable GCs in the area!

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  • Malorie Moore
    Real Estate Agent · Memphis, TN · Member since 2021 · 88 posts · 50 votes
    1y

    I have assisted many investors with their Little Rock purchases. As the state capital, it boasts a strong government and military presence, supported by the nearby Air Force Base. The area’s limited number of apartment buildings means that many renters prefer single-family properties, creating steady demand for these homes.

    Happy to chat further if needed.

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