Team Building Recommendations and a Big Question

[Daniel LaMontagne]

Hello BiggerPockets! I am looking to invest in a multi family property in the Springdale or Rogers areas of Arkansas for the purpose of cash flow. I am looking to take the first step in building a team in the area, beginning with finding a real estate agent who is intimately familiar with these markets. I plan to visit the area mid month to meet some potential agents and more closely familiarize myself with neighborhoods, and look at some properties. For a brief history, I am in the process of finishing my second house flip in Southern California and am looking to transition into the multi-family sector. Specifically in an up and coming area where the > 1% rule is still attainable. (Rent equaling 1% or more of the purchase price/month). I am not interested in anything that does not meet this criteria, and expect to do rehab to increase the quality of the property and cash flow. My target is 5 - 20 units for the commercial valuation and value add potential. I’d like to put $20% down on a purchase price no greater than $750k. I have no property management experience and am aware jumping into this type of deal opens the door to many unforeseen problems, but 10X baby. After listening to a plethora of Insightful BiggerPockets podcasts I believe this is the most advantageous way to proceed. I have no problem getting my hands dirty, and have adequate reserves. My reasons for selecting Springdale and Rogers are as follows: Ability to obtain 1% rule, good school districts in general, low crime rate, stable tenant base (Wal-Mart and Tyson), potential for appreciation as Fayetteville has seen substantial growth, and lastly I know a few people who live there and love it. If anybody else is familiar with or in investing in the Springdale or Rogers areas, I would consider partnering and going in on a larger enterprise. I am able to fly for free as I am a commercial pilot, and I have plenty of hands on experience with rehabs I plan to put to use overseeing this endeavor. To add a huge question into this mix, the property I currently have is in the south end of Oceanside .5 miles from the beach. Option A is to sell it in a few months when the project is complete and put the money into the above investment. Option 2 is to rent it for around $800/mo cash flow, hope for appreciation, and make a smaller investment into Springdale. Thank you for your time, insight, and real estate agent references. -Danny LaMontagne