It is hard to believe, but our entry into the Little Rock market is about to complete its 4th full year in operation. I can honestly say that going into another market was something we did not plan on doing as I was worried about preserving the standards and reputation of our renovations and property selection that we developed in our own backyard of Memphis, TN. Think of that local restaurant or business in your own market that was giving great service and doing well, then one day they expanded and location # 2 simply isn’t as great as the original location. All of a sudden, the original location is not operating as well because ownership is spending to much time in location # 2 and neglecting the original location. Fast forward from 2013 to today and our entry into Little Rock has been a smashing success and any concerns I had going into market # 2 were quickly dismissed with not only the incredible Operations and Property Management we have, but the market itself. We knew going in that there was a demand for rental homes in the Little Rock market, what we quickly found out was just how big of a demand for quality rental homes with the standard Turnkey Properties Renovation that we do. Not to toot our own horn, but we were routinely and still do hear comments to the effect of “This is the nicest home I have ever lived in.” Answering that demand led to higher rents and quicker occupancy. In regards to higher rents, in 2015, Little Rock ranked 10th in the US with an 11.4% increase in rents–Arkansas Democrat-Gazette.
Even with the success we have had in Little Rock from selling a handful of properties in our first year to exceeding 50 properties sold in 2017, I still feel it is a relatively unknown market, which is not all together bad as institutional buying is no where near what is in other markets, which can put pressure on the mediocre rental homes that make up the majority of rental homes in each market. That is another reason why a unique model and high level renovation is so important, but that is a little off topic, but always worth a mention seeing as our model focuses so heavily on high level rental homes. Back on topic, I do want our subscribers to learn as much about Little Rock as they do Memphis and consider the benefits of being in multiple markets or selecting Little Rock as one of their markets if they are already in more than one market. So what are those advantages? To name a few:
1. Diversify portfolio
2. Hedge against local economy changes
3. Capitalize on unique advantages that another market may not have. For example, more local commercial lenders are available in Little Rock than in Memphis that can assist with continuing your acquisitions after you hit Fannie & Freddie limits
4. Ease of doing business with 1 team for 2 markets
As we head into Q4 of year # 4 in Little Rock, we want to thank all of investors who has supported us and encourage new investors to strongly consider Little Rock as their market. What does year 5 and beyond going to bring? Expect the same type of rental homes that have been on our site for the past 4 years. Expect larger Multi-Family units (currently working on a 21 unit deal). Also expect some lower price entry points in the sub 75k market. Our ownership has done very well in certain areas of Little Rock in this space and we see no reason not to share that experience with our investors. Speaking of ownership, the Little Rock team collectively owns 30 properties and have been buying since 1997. We expect to see other companies follows us into Little Rock, but none will have the experience our team has. Experience in any industry is a must; Real Estate is no different.
Real quick, 5 great thing about Little Rock. There are more; set up a quick 30 minute call with our staff to hear the rest……
1. Low Property Taxes
2. Demand for Quality Rentals
3. Strong Economy with High Employment Rate of 97.2% (above national average)
4. Diverse Economy Hedges Against Fluctuations in the Economy
5. # 1 Ranked City to Live by Kiplinger’s Publication with Population under 1,000,000
