My wife and I are trying to find our first rental property in the Oklahoma City metro. Can any OKC investors give me an idea of what cap rate you are shooting for or seeing in properties that you own?

i shoot for the 1% rule here, if i cant get at least that i do not look personally. there are lots of folks in town that invest and are ok with a 7 or 8 cap rate. really just depends on what you are looking for and what type of property you want to own.

@Rhett Tullis is right on.  There are a lot of people that are happy with the 7 and 8 cap.  The 1% rule is getting a lot harder to find in the good areas like Edmond though.  We are seeing multiple offers on just about everything that is priced decently in the Edmond area under 200k.  

You can get a little higher cap rate if you are ok going with a lower class tenant - although that is not necessarily my specialty.

@Josh Buss

Mine is below 1%. Can't remember exact but purchase price + renovation was $375k and rent is $3100 per month. That was my home in Edmond turned rental. 

If I were to buy in Edmond, I'd be happy with 0.8 in class B neighborhood, fairly new construction homes. 

Thanks for the answers guys! That is really helpful, just trying to get an idea of what I should be expecting.

@jai 

@Jai Reddy have you had more than one tenant in your house? Just curious about how easy it is to rent out something that high end.

You really should be shooting for a 10% cap rate (and  greater than 1% rule) in OKC for any property $40-$150K.  Things get a little different though for more expensive properties.

The 'sweet spot' for OKC homes is around $100K full retail.  Rent for around $1000/mo.  Purchase/rehab/require for $80K is doable and you will hit those 10% and 1% marks.

@Josh Buss

I am on my second tenant family over the past 2.5 years. It sat vacant for 5 months in between. 

I use a local property management company who shows properties around all day. This was my own home turned rental and I wouldn't go with this price point if I we to do it today. 

After talking with my company's leasing agent as to what would lease faster in Edmond she said 150K in Edmond or Deer Creek districts go for $1200-$1400 and to a desirable quality of tenants. This is still less than 1% but that is for a gain in quality of tenants (families, W2 paycheck, rent auto deductible from tenants bank account).

Thank you @nicolas franckenfeld and @jai reddy for the input!

Let me come at it from another angle. Most of my portfolio are lower end rentals ($30,000 and down). 1% is not sufficient to deal with the headaches that come with this caliber of tenants. I won't buy one unless it's 2.5% minimum. Anything around 3% is a home run. Granted, these returns only work on the lower end "work horses" and not the Edmond "show horses". 

Thanks @Brian Nix !