What does a real turnkey build-to-rent property actually look like here in Central Arkansas? In this episode of the Relentless Growth Podcast, I walked through one of our completed duplexes in Little Rock alongside my good friend Brian Teter of Little Rock Turnkey. If you have been hearing about build-to-rent as a strategy and want to see what an investor is really getting, this is the tour.
Who We Toured It With
Brian runs Little Rock Turnkey, a property management company and turnkey rental provider that has been in business here since 2012. Their bread and butter has always been remodel and rehab work, then renting the units out, but they have been getting more interested in new construction. We built one new-construction rental for them over a year ago, it turned out well, sold to one of their owners, and has been a great rental ever since. The unit we toured is identical to the ones we are getting ready to build more of for them.
The Property: A 3-Bed, 2-Bath Duplex
We are getting ready to build five of these exact duplexes on a really nice piece of land in a quiet part of town. They share the same floor plan, a three-bedroom, two-full-bath townhome-style duplex unit, though the finishes will vary a bit from build to build. It is a clean, efficient product that rents well and is straightforward to maintain, which is exactly what you want in a build-to-rent asset.
The Build-to-Rent Thesis
The appeal of build-to-rent is that you get a brand-new, low-maintenance home designed from day one to be a rental, instead of inheriting the deferred maintenance and surprises that come with an older property. New construction means fewer repair headaches, modern finishes tenants want, and a product you can lease up quickly.
A Flexible Exit Strategy
One thing that makes duplexes attractive is the exit options. These will be marketed specifically to investors with tenants in place, but when we list duplexes on the MLS to sell, you might assume they only go to other investors. In my experience, most of the ones I have personally sold went to owner-occupants. Buyers can use an FHA or conventional loan to purchase, live in one side, and rent the other, which is classic house hacking. That flexibility means you are not stuck selling only to another investor when it is time to exit.
Want to Build Rentals in Central Arkansas?
If you are an investor looking to build duplexes or single-family rentals in Little Rock, Conway, Bryant, Benton, or anywhere across Central Arkansas, we would love to help you build a quality product that performs. Give us a call at 501-850-6364 or request a quote to get started.