Little Rock, AR Out of State Investor Deal Break Down

[Chase Calhoun]

Here is a break down of a deal I am working on with a first time out of state investor. I am working with him as his realtor, but will also manage the rehab and do the property management down the road.

Investor is located in CA and wanted to purchase his first out of state single family home (sfh) rental property in Little Rock.

I prefer to look for properties decent areas class C to A- that need a light rehab but have decent bones.

One of the properties I sent him was one I had been watching and though may have good potential. It had been listed on the MLS for a while but hadn't sold and was listed for $125k. Some of the best deals on the MLS I have found have been owned for a while, have been stale on the MLS, and usually are lacking or have bad pictures. The home is 4 bedrooms with 2 full bathrooms and 1557 square feet. The home also has a newer roof and all brick construction which are both bonuses and there will be less cap ex down the road. One negative are older HVAC system and older water heater both of which may need to be replaced in the near future.

We were able to get the home under contract for $115k. Once closed we will do a $7,500- $8,500 rehab. Interior paint (including all cabinets), new hardware on the cabinets, new light fixtures, new switch plates, add a moister barriers, clean up the landscaping, and a few other small items. This will completely Changes the way this house looks and shows.

We will then take professional photos and list for $1350 a month. This home should cashflow well and provide him with a great cash on cash return on his investment.

Here are some before pictures.

[Chase Calhoun]

Originally posted by @Joseph M'Mwirichia:

Kudos Chase! Will be great to see the after pics! #keepSMASHING 

PS: How has the economic/job market in Little Rock weathered covid-19?

 At least for now, it seems Little Rock has been ok during this.  We did not go on full lock down/ shelter in place.  The biggest hit is going to be to small businesses like gyms/ restaurants and their employees.  I'm sure we will see more businesses that close for good and associated layoffs/ unemployment.  With that said we have quite a bit of professional, industrial, and medical employers that should be able to keep the economy and employment relatively strong.  Im still seeing a strong need for rental homes with well qualified and employed tenants.