All Forum Posts by: Chase Calhoun

@Evan Bradley We would love to get your thoughts on the different areas in little rock. Looking to do BRRRR but do not want to be slumlords. Also heard appreciation is hard to come by in this area. We were looking into the Conway area since it has good schools.

BRRRR is possible for sure, but usually best with large rehab projects which are tougher. Traditional appreciation is rare in most parts of Central Arkansas but there have been some neighborhoods that have seen appreciated from a high demand. In my opinion you dont have to count on traditional appreciation with a BRRRR and you force it through the rehab. The main barrier right now would be the cash out refinance. A lot of lenders have tightened their belts during Covid. I am doing one right now on a class A rental home but am using a commercial loan through a small/ local bank. The home values in the neighborhood have not increase but the value of this home has increase substancial through the rehab.

0 Votes

I am an active investor and investor friendly real estate agent in Little Rock and think it's a great market. I think you can invest successfully in most areas but personally am trying to invest in more stable/ nicer areas as they draw much better tenants and have more options when you decide to exit.

I am seeing a huge tenant demand for rental properties (especially nicer proprties) but the purchase market has been more competitive latelty due to lower inventory and low interest rates driving first time buyer sales.

Please dont hesistate to reach out if you have any specific questions as I am always more than happy to shar information.

0 Votes

Originally posted by @Shane Gordon:

Glad to hear you have had success in Little Rock. We are from NC but looking to invest out of state in AR since it seems to be better cash flow. NC is too pricey now. Any suggestions of where to start looking in areas of AR? We are trying to get a team together since we won't be able to travel up there like we normally would.

Shane,

Thank you! Little Rock and some of the surrounding areas are a great place to invest, especially for solid cash flow. Lets set up a time for a phone call, I would be more than happy to share information and see if there is any way I could help.

0 Votes

Originally posted by @Ivan Lu:

@Chase Calhoun

Thanks for sharing, Chase! Congrats on a good deal. Would you mind sharing how the partnership and responsibilities are laid out for the both of you? What's your guys' COC return on this?

Also, I was wondering about the small multi-families do there.

Thanks in advance.

Ivan

Hey Ivan! It looks like you are from my old neck of the woods! I was born and raised in the east bay area. I lived in martinez/ pleasant hill area for most of my life prior to relocating to AR.

No partnership on this one. Just trying to help out a new/ out of state investor. In return I make a little $ on the real estate transaction, rehab, and property management. I also usually gain a long term/ repeat client and who knows maybe future investor/ partner down the road!

Shoot me a private message with your contact info and I will reach out to answer any specific questions. I usually let the investor run their numbers on these and 10-15% COC is pretty obtainable with these type of deals although I want to say this one may actually be 15%+ COC. It was a great deal! I will share some more in the coming weeks. Both past deals and active!

Small MF are a solid option here but a little more competitive and less inventory but still usually cash flow well. There are a couple available now, just let me know if you have any questions on them or want more info.

0 Votes

Originally posted by @Hadar Orkibi:

@Chase Calhoun Argenta is small pocket in North Little Rock, 72116.

Many of the older building have been renovated, there are handful of local investors that hold most of the good assets, really good deals are far and few between. There are few streets to the left and to the right that are out of the Hot Zone, but still command high rents because of the proximity to Argenta.

I know of a 4 plex (2x Duplex side by side) Off market not so far that would cash flow like an ATM, but the location is not Argenta. lower demographic.... Happy to pass you the details if you want, PM me.

Argenta is a cool area and I see a lot of potential in the future will all of the redevelopment in the area. I sent you a PM.

1 Vote

Originally posted by @Mary McMillan:

@Chase Calhoun looks like a great deal, please share the after pics!

Absolutely!

0 Votes

Originally posted by @Nick E.:

Hello! I just posted about the desire for a small partnership just like this. I'd love to hear how this partner found you and how I might go about finding someone like you. I have cash, experience, and am very mobile 6 months out of the year. Good luck!!

Hello Nick! Shoot me a private message I would be more than happy to share my contact information. Maybe we could schedule a phone call this week and chat.

1 Vote

Originally posted by @Matt Reynolds:

That rehab looks good! I'm in the process of closing on my first out of state rental in North Little Rock. So far so good, PM is set up and tenants already in-place.

That's great! Central Arkansas is an awesome market! I have not done a whole lot in NLR but may in the future. I have been looking pretty hard at the Argenta Area.

0 Votes

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.

3 Votes

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.