Oklahoma City Distressed Properties - Price Range Concern

[Zac Celli]

Hey there BP Community!

I have been evaluating markets (for BRRRR investing) for the past month. I have narrowed it down to the final handful & Oklahoma City (City not Metro) is winning in almost every category except price. The current median home price in Oklahoma City is ~$135 which is proving to be the biggest barrier to entry.

My model is based on $85,000 basis (Assumed 60k purchase & 25k rehab), with $110,000+ ARV, & a rent to value of >.9%. I am worried about the ability the pick up distressed properties near that purchase price, in a good neighborhood, that will allow for an ARV around that value.

However, as Oklahoma City is 650k people & 620 square miles, I am hoping that there is plenty of opportunity to acquire properties at, or at least around, my model. IF NOT, there is wiggle room in my basis amount. I am hoping to find reality for what investors are finding over there.

Can anyone let me know if they have acquired anything for around these values, in good neighborhoods, positive cashflow, etc. in the Oklahoma City, OK market? Happy for any and all input!

Thanks!

[Will Fraser]

Hey @Zac Celli!  Like @Rob Terpilowski said above, the submarkets of OKC do offer some 1% BRRRR properties, but in the proper OKC there are few areas that you'd be able to be "all in" at $85k that would appraise over $110,000 AND rent for $1,025 or higher. Typically you can hit one or the other really easily, but you'll have to find a "sweet spot" in the metro to hit the 1% rule and BRRRR with little cash left in. Not impossible, but not "everywhere."