Oklahoma Buy and Hold - OKC/Tulsa

[Justin Walters]

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!

Thanks,

Justin

[Cassi Justiz]

Hi @Justin Walters,

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.

Good luck and welcome to BP!