Duplexes in Little Rock are the most popular entry point into rental investing, and the most consistently mis-underwritten. Here’s a real operating profile from our managed portfolio: a Class B duplex in west Little Rock, fully stabilized, owned by an out-of-state investor we’ve managed it for since 2022. Numbers are real, only the address is anonymized.
Property profile
- Class B duplex, west Little Rock
- 2 units, both 2-bed / 1-bath, ~900 sq ft each
- Purchase price 2022: $185,000
- Current market value (2026 estimate): $225,000–$245,000
- Both units rented at market
Annual operating numbers (2025)
- Gross Scheduled Rent: $24,600 ($1,025/unit × 12 × 2)
- Vacancy + credit loss (5.5%): $1,353
- Effective Gross Income: $23,247
Operating expenses (2025)
- Property tax: $1,820
- Insurance: $1,460
- Repairs and maintenance: $1,890
- Turnover (one unit turned, $1,650): $1,650
- Management fee (8.5%): $1,976
- Leasing fee (one new lease): $650
- Utilities (common area only): $180
- Pest, landscaping, misc: $720
- Legal / admin: $150
- Total OpEx: $10,496
- OpEx ratio: 45% of EGI
Capex (2025)
- Water heater replacement, Unit A: $1,200
- HVAC service, Unit B: $480
- Capex reserve allocation (additional): $1,400
Result
- NOI: $12,751
- Cap rate on 2022 purchase: 6.89%
- Cap rate on 2026 estimated value: 5.42%–5.89%
- Cash-on-cash return (with $46,250 down + closing): ~13.1% pre-tax after debt service
What the broker pro forma probably said
- OpEx ratio: 28% (vs. actual 45%)
- Vacancy: 3% (vs. actual 5.5%)
- R&M: $400 (vs. actual $1,890)
- No capex line at all
- NOI projection: $17,800 (vs. actual $12,751)
The broker pro forma overstated NOI by 40%. This is typical. Underwriting the duplex correctly is what separates a 13% cash-on-cash deal from a 5% one masked by optimism.
What we’d tell a buyer looking at this duplex today
- At current $225–245k pricing, cap rate compresses below 6%. Cash flow gets thin.
- Better play is a Class C duplex in east Little Rock or North Little Rock with value-add potential.
- If you must buy stabilized at current pricing, stress test rent at -10% before signing.
Frequently asked questions
Is a duplex a better first investment than a single-family?
Usually yes. You diversify tenant risk (one vacancy doesn’t zero your income), and per-unit cost is typically lower. But financing is sometimes more complicated.
What OpEx ratio should I expect on a Little Rock duplex?
40–48% of EGI on Class B. Anything significantly under is a red flag in the underwriting.
How long does a typical duplex tenancy last in Central Arkansas?
1.5–2.5 years average on Class B. Longer on Class C with the right tenant.
Should I submeter water on a duplex?
If the meters are already split, definitely pass water to tenant. If they’re not split, submetering retrofit costs $1,500–$3,000 and pays back in 18–36 months.
Do you manage duplexes?
Yes. A meaningful portion of our 150+ unit portfolio is small multifamily including duplexes.
Want a real number on a specific duplex?
Call Chase at 501-650-5137 or sales at 501-902-8242. Send the address and we’ll model it.
About the Operator: Chase Calhoun is the founder of Chase Calhoun Real Estate, managing 150+ rental units across Central Arkansas with 95%+ occupancy and a 10-day-or-less unit turn benchmark. Read full operator profile.
Markets we serve: Little Rock · North Little Rock · Sherwood · Conway · Benton · Bryant · Maumelle · Cabot · All Locations
Operator services: Property Management · Build-to-Rent · Real Estate Sales · Cash Offers · All Services
Want help running the numbers on your next Arkansas deal?
We manage roughly 160 doors across Central Arkansas and we invest here ourselves, so we can pressure-test your assumptions before you buy. Get a free rental analysis on a property you are evaluating, explore build-to-rent if you are building from the ground up, or see how our property management keeps returns on track.
