Out of state Investor; looking into Oklahoma...

13 Replies

Hello all,

I am an out of state investor from Southern California.  I've done quite a bit of research on some out of state rental investment opportunities.  I was initially leaning towards Las Vegas but I soon learned the investors have drove the prices up quite a bit in these last few years causing my potential cash flow to diminish.  I have really been focusing and doing quite a bit of homework in the state of Oklahoma, more specifically Norman, Ok.  I was wondering if any of you local or out of state investors can offer any feedback on the area?  Success stories, etc.  Thanks for any input, I really appreciate it. 

Have you looked at central california. Not sure what "margins" you are looking for, but we have done very well for our niche.

We self manage and that has saved us a lot of money and allowed us to have more control. We have managed to do so even across the country. We invest in class A real estate. It has smaller margin but less expenses, fewer vacancies, appreciations in both value and rent PLUS we can self manage. My website talks about our model/experience.

While I can't speak about Oklahoma. Make sure you budget for more "Expensive" repairs. My husband is active duty navy so "home" is relative. Therefore we invest all over. I know once we retire we plan on selling all the houses doing a 1031 so that they are local. Long distance houses are a lot more expensive than ones close by. We paid $250 for caulk the other day, something my husband could have done in 15 minutes simply because it was 3 thousand miles away.

I actually lived in Pasadena for 9 years and had rentals there.  I have since sold everything there and moved to OKC.  I am very happy with my returns here.  Not the huge gains on appreciation I was seeing in cali but also not the huge risk either.  I also get much better return dollar for dollar on rents.  

Why Oklahoma of all markets?

Oklahoma has a pretty good rental market. I live in Ada, OK and the market here is great because of the College and Chickasaw nation.  I can discuss further if you'd like. 

@Ali Boone  where do you recommend?  just curious?

Originally posted by @Ali Boone:

Why Oklahoma of all markets?

 lol.. you are saying it like it's a bad thing. :)

@Rhett Tullis

It all depends on the investors' goals. What they want more- cash flow, appreciation, high-end, low-end, etc. I don't know much about the Oklahoma market but seems like it would be plenty stable and fine for cash flow, similar to most of the midwestern markets. Known for stability, not so much for appreciation.

Rhett is correct and so is Ali. Oklahoma won't give you much in the way of appreciation but does offer, great cash flow and a good rental market. 

Most of Norman is expensive compared to other parts of the city but you do have a large student population with OU being right there. What kind of property are looking to buy and in what price range? i left OKC 3 years ago but still invest long distance there.

I just sold my first rental property in Norman in June. I bought it retail in 2003 for 120k and ended up selling it for 130k. When it was all said and done it was pretty much a wash. On the plus side it paid for my living expenses during college and was cash-flowing after I left as well (rented for around $1200 a month). My stepfather managed it from Tulsa after I graduated and as a result it probably had a higher vacancy rate. As others above have said the market doesn't appreciate a whole lot but if you have a good manager it should be pretty easy to keep rented. It should be a pretty good market if you buy correctly (vs. retail like I did). Try to keep your area within an easy bike ride distance to the campus to capitalize on the student population. Shoot me a message if you have any specific questions about the area.

I went to school in Norman and lived there off and on for 8 years. It is one the the best places to live in Oklahoma. I don't personally invest there because you are competing with a lot of retail buyers. However, I am comparing it with smaller areas that you probably would not consider because of the management issues. I would certainly recommend it in general- if you find a deal that meets your numbers. 

Justin,

Are you looking to buy residential or commercial?  Oklahoma will not offer much appreciation on the res side, but I have seen decent commercial (retail) deals in OKC and Tulsa.

Mark Creason

[email protected]

I'm looking at the residential side of things out there.  I understand I'm not going to make millions off of a single family home in Oklahoma in the way of appreciation but I am looking for something steady in the way of cash flow.  This is a "starter" which I will use to build cash flow a little bit of equity, purchase my next one, and move on.  I will probably stay in the range of 115k - 125k on this one.  What do you guys think?  Thanks again. 

lots of deals in that range although your best return is in the sub 100k market.  remember the cost of living here is low especially when compared to cali and so are the prices.  feel free to give me a call anytime,  not trying to push anything but have pretty broad knowledge of the okc rental/buy and hold market.  i personally buy here so i think it is a great deal overall.

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