Flipping Houses In Arkansas

How To Flip Houses In Arkansas

November 22, 2023

Produced by:
Richard Stevens

Richard Stevens is an active real estate investor with over 8 years of industry experience. He specializes in researching topics that appeal to real estate investors and building calculators that can help property investors understand the expected costs and returns when executing real estate deals.

Arkansas has been attracting increasing interest from property investors in recent years. With a relatively low cost of living and very affordable housing, the Wonder state can be a good place for first time flippers to make their mark. Now let’s take a more detailed look at how to flip houses in Arkansas.

Arkansas House Flipping Stats

Median Purchase Price

$99,260

Median Resale Price

$137,140

Average Revenue

$37,880

Price Per Square Foot

$101

Arkansas Population Size

3,017,804

Median Household Income

$45,726

High School Graduation

86,2%

Travel Time To Work

21.7 Mins

Best Cities for Flipping Houses In Arkansas

  1. Little Rock
  2. Fort Smith
  3. Fayetteville
  4. Springdale
  5. Jonesboro

Safest Areas in Arkansas

  1. Bella Vista – Safety Score: 87.13
  2. Bentonville – Safety Score: 82.50
  3. Cabot – Safety Score: 81.77
  4. Siloam Springs – Safety Score: 78.95
  5. Maumelle – Safety Score: 78.32

Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.

The Basics Of Flipping Houses In Arkansas

  • Find a property in Arkansas that is undervalued
  • Source funding from a reputable lender
  • Buy the property for a price that makes it possible to generate profit when it is resold
  • Complete renovations that will increase the after repair value
  • Find buyers for the property and sell it for a healthy profit margin

How To Find Houses To Flip In Arkansas

1. Use FlipScout By New Silver

FlipScout is a free tool that helps you find most profitable real estate investments using data and intelligence. Find a property to flip or rent out anywhere in the country.

2. Leverage The Power of Wholesalers

Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Arkansas.

3. Attend Bank Auctions

Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.

4. Use Direct Mail To Find Off-Market Properties

Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.

5. Sign Up To The Multiple Listing Service (MLS)

Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.

6. Find Foreclosures

When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Arkansas, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.

Arkansas Housing Market Analysis

House Flippers Are Focusing On Good Areas: The median home value in Arkansas is $140,849. The median resale price for house flippers is approximately $137,140. This indicates that investors are selecting run-down houses in desirable areas. Although this strategy is working well, there are clearly some challenges preventing flippers from achieving large returns. Where most flips in the US generate over $60,000 in revenue, this number drops down to $37,880 in Arkansas. Based on this, you need to be extra careful with renovation costs, and manage your budget with the precision of an accountant.

Home Values Have Appreciated By 6.0%: According to Zillow, home values in Arkansas appreciated by 6.0% over the last year. Moreover, property prices have been steadily increasing since late 2012.

Despite taking a small dip when covid-19 first arrived in the US, the Arkansas real estate market has responded well since then. Historically low interest rates have increased demand for homes, while the supply of houses hasn’t increased proportionally. This is a recipe for continued home appreciation, at least in the short term.

Foreclosures Are Less Frequent In Arkansas: The national average for foreclosures is 1.2 per 10,000 homes. In Arkansas, this number drops down to 0.7 per 10,000 homes. The take home message in this case is that you might need to focus on other methods for finding properties to flip in Arkansas. 

Homes In Arkansas Are Much Cheaper Than The National Average: The average home value in Arkansas is $140,849. This is more than $120,000 cheaper than the average home in the United States, which is approximately $266,222 at this moment in time. 

The lower cost of homes in Arkansas is good news for first time flippers, because it reduces the amount of capital needed for a down payment and the total loan amount needed to purchase the property. 

Apply For An Investment Property Loan

If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.

Next Steps

If you’re committed to flipping houses in Arkansas, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit. 

Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.

Property Flipping Resources

Hard Money Loan Calculator: Analyze the costs of your next flip in detail with our hard money calculator.

ARV Calculator: Workout the After Repair Value of the property that you are hoping to flip.

Resources Used In This Post

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