Rental Property Investor · Charlotte Hall, MD · Member since 2020 · 29 posts · 13 votes
Hello fellow BP'ers!
My wife and I are beginning our quest to move our REI focus to the OKC/ possibly Tulsa market. Our focus is buy and hold as our desire is to retire back to OK (I am currently active duty military).
Purpose of this blog is to build a network back in OK to bounce ideas off of, find the right people to have in our network for PMs, GCs, and anything else that may assist us in moving our REI forward in the right direction.
Just for a quick description of what we are looking for:
SFH (possibly duplex) 3/2 around 1000 +/- sqft
Neighborhoods we would be willing to raise our kids in ourselves.
We really like the 2% rule but willing to consider 1.5% but also look at the 50% rules as well.
Would really like to see rents come in around $800...starting to think $700 would be a conservative starting point.
Somewhere in the $50-$80K price point.
We look forward to connecting with likeminded BPers!
You've already got great advice on this thread, but I thought I would add a little input as well.
2% rule houses are almost exclusively going to be in D class areas. Most of the ones that I see will only hit that 2% rule by adding an extra bedroom and renting to section 8 tenants. Rarely do I see regular market rent hit 2%, even in the D class areas. Some of these areas you wouldn't want to drive around at night with your kids, much less raise your kids.
I'm not incredibly familiar with the Tulsa market, but in OKC you can get some solid houses in C class areas for around 60-90k that will rent for at least the 1% rule. You can occasionally hit up to 1.2-1.3%, but that's pretty much where it caps out unless you start doing significant value add. It's still good for cashflow and stability, but not the 2% rule that you are hoping for.
Multifamily properties rarely hit the 1% rule unless you are buying something that needs work. In OKC, the better returns are typically going to be on SFH.
To get the 2% rule, you wouldn't want to live there.
You don't need a GC buying turn key properties and don't buy rehab properties if you are not there to supervise.
Not sure where you would live but probably not where you are getting 2%. Good solid neighborhood will be around 1% in OKC or Tulsa. Investors getting better are buying and rehabbing. I don’t recommend this for out if state. You will spend more on the rehab bc you are not there control the cost. Just buy a rent ready home
I actually don't understand what you mean Arlan. There are still plenty of good neighborhoods in OKC and Tulsa that $1600 could get you into a REALLY good location.
Second, GC'ing can absolutely be done from a distance. Obviously the point is finding a reputable GC that you can rely on. I agree there are risks but with the right research and background on a GC, you can find someone that you can use and not be there to supervise. And last, you ALWAYS want a GC in your network, whether its turnkey or not. You never know what the future holds and never want to get with your pants down.
$1600 rent will get you into a nice neighborhood in OKC, but you won't be buying any houses, even distressed, in that neighborhood for 80K. In decent neighborhoods here in OKC, it's typically ~1% rent to purchase price. Even distressed or BRRRR candidates aren't leaving much margin to get better than 1%.
You can probably find deals that will be close to 2%, but now you’re venturing into some rougher areas that I wouldn’t feel comfortable raising my kids In.
Hey Justin, I've got a couple connections in the OKC area that could be helpful for you. I've found it's difficult to find multis that meet your description, but for SFH, it's not unreasonable to get in the neighborhood of the 1-1.3% rule. Good luck!
You've already got great advice on this thread, but I thought I would add a little input as well.
2% rule houses are almost exclusively going to be in D class areas. Most of the ones that I see will only hit that 2% rule by adding an extra bedroom and renting to section 8 tenants. Rarely do I see regular market rent hit 2%, even in the D class areas. Some of these areas you wouldn't want to drive around at night with your kids, much less raise your kids.
I'm not incredibly familiar with the Tulsa market, but in OKC you can get some solid houses in C class areas for around 60-90k that will rent for at least the 1% rule. You can occasionally hit up to 1.2-1.3%, but that's pretty much where it caps out unless you start doing significant value add. It's still good for cashflow and stability, but not the 2% rule that you are hoping for.
Multifamily properties rarely hit the 1% rule unless you are buying something that needs work. In OKC, the better returns are typically going to be on SFH.
@Justin Walters excited for you go get started! You might be able to hit the 1.5% rule if you focus on Midwest City, Del City and South OKC. Most of these neighborhoods are going to feel like older suburbia so although not up-scale you likely wouldn't have a problem living there from a safety perspective.
As-is most of the investors I know are picking up properties at 1% rent to value in these areas, but if you're willing to do a light cosmetic upgrade, or convert a garage and get approved for section 8 a 1.5% goal isn't too wild!
Let me know if you have any questions on the market!