Anyone buying rental properties in Oklahoma ?

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Tracy StreichPro Member
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
6y

I own properties on both the OKC and Tulsa markets.  I also manage about 600 doors in these markets.   Here are a few of the problems I run into with out of state investors.  

 1.   I can get 2% rule in Oklahoma.   Yes you can but the question is do you really want to be in that market.   You almost have to deal with the local housing authorities and accept vouchers.   This is fine if that is your target market.   They typically pay more.  The rub is we have had to pick up the pieces with OSS investors thinking they are getting a great deal.  In fact they are often dealing with people doing a very poor quality, low end renovation and selling it as turn key.   They then have a house that should rent for $800 per month but they get $1100 per month  with the voucher.   These houses can be bought for $70-80K turn key.   The problem is they are not in good areas.   The house will be worth the same or less in 5 years.   On top of this they bought a house with a sub par renovation.   Turn over cost on these houses tend to be double or triple that of a typical rental and occur almost annually. 

2. The next call it get is "I want to buy a house that needs some renovation and do the BRRRR method" I think the BRRRR method is great....if you are there every day and managing the renovation yourself. If you are paying an OSS contractor you can still get a great reno but is going to cost you. Then you have to have someone checking in on them. Is that your realtor or PM? You will need to pay them to do this as well. This is how this usually works. House ARV is advertised as $130K. Purchase is $75K and needs $30K renovation. Well the $30K always ends up 25% higher because you are not here to manage the renovation and ARV ends up at $120K. Now you have a $120K house that you are all in at $115K that rents for $1000 per month. Still not a bad deal but you spent 90-120 days to get it there and in reality you could have bought a rent ready home on the mls with the same spread.

3.   Next call   "Can you manage and help me get this house leased.   My realtor said it would rent for $1150 per month"   Well your realtor has clearly never rented a house in that particular neighborhood because the rent will be $950-$1000   No matter who you are using to buy the house just call a PM that has no commission on the line if you buy that house and ask them the rent range for that neighborhood. 

I love Oklahoma and I love OSS investors.  Just don't come in with blinders covering your eyes.   Do the due diligence.   I think you can buy and average home in Oklahoma and significantly out perform other markets especially any state touching the Pacific Ocean.  Good luck and welcome to Oklahoma.  Just remember just like where you live...if it is way to good to be true, well you know. 

[email protected]918-728-8080
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  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Anthony Petrozzella

    It’s me

    I live in NYC and invest in OKC too :)

    2Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Son Tran

    How many units do you have so far ?

    0Reply
  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Anthony Petrozzella

    I started in Sep 2019, not long ago. Now I have 7 doors.

    3Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Son Tran

    I’m looking to buy my first door there. Can you give any advice based on your experience so far ?

    0Reply
  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    @Son Tran

    What areas are your properties in?

    0Reply
  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Jai Reddy

    I buy all over, as long as the numbers make sense. :)

    So far I like the South, Lake Hefner and Edmond.

    2Reply
  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Anthony Petrozzella

    I don’t have much experience to give you advice. I do it and with all the help of my friends who live there.

    You need to find someone who can do it for you or fly there to do the first few ones and understand the market. Once it is smooth and running, you can remotely control the process.

    0Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Son Tran

    I have a friend there that has 4 doors so far. He has all the connections; real estate agent, contractor , property manager , etc

    5Reply
  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Anthony Petrozzella

    That is awesome. Your friend that you can trust is the first step to get you to investing out of state. Ask him to hook you up with these parties.

    2Reply
  • Austin Culver
    New to Real Estate · Mcloud, OK · Member since 2020 · 7 posts · 5 votes
    6y

    @Anthony Petrozzella

    I live in Oklahoma! Born and raised. I am just starting my real estate venture and am looking in the Shawnee area. Decent sized town with a college and other attractions I believe would be conducive to rental success. I am also meeting with a friend of a friend next week that invests in the area to pick their brain!

    2Reply
  • Cassi Justiz
    Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    I live in Edmond and invest in OKC and Midwest City. 

    This is a great place to connect! 

    6Reply
  • Deborah BurianPro Member
    Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
    6y

    Is anyone NOT buying rental properties in Oklahoma? (Insert laughing emoji)

    4Reply
  • Mark Keeler
    Fremont, CA · Member since 2016 · 25 posts · 19 votes
    6y

    I am looking at OKC and surrounding areas too.  I don't know anyone personally yet.  I am looking to build relationships with other BP investors in the OKC area.  We are driving through Oklahoma in June on a family road trip.

    I made contact with Kierra and Alyssa from Table Investments and both are super helpful for people looking for turnkey properties.

    5Reply
  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    @Mark Keeler

    Looking at your profile, it appears you invested in a Colorado duplex (turnkey?) and it didn’t go well.

    Any lessons to share?

    Why are you looking for turnkey? Wouldn’t you want to locate your rental yourself, acquire it, then use a local property management company to lease and manage it? Just curious as to what your strategy is?

    1Reply
  • Ron Todd
    Rental Property Investor · OK · Member since 2019 · 126 posts · 114 votes
    6y

    I've got several properties in Oklahoma. I saw someone already mentioned table investments, I worked with them to get a house in OKC. I would highly recommend you talk with them and get a feel for the area. They are not hard sell and they go out of their way to answer any questions. I'd be happy to answer any questions, feel free to DM me.

    5Reply
  • Kurt Michaelson
    Mustang, OK · Member since 2018 · 154 posts · 110 votes
    6y
    Originally posted by @Anthony Petrozzella:

    Looking to make meet fellow BP members in the Oklahoma area

    Anthony, I look forward to connecting with you. I live in Yukon, which is 15 minutes west of OKC.

    4Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Kurt Michaelson

    I sent you a request to connect

    0Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Ron Todd

    I just reached out to Table Investments. Thanks for the introduction 👍🏻

    3Reply
  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    6y

    As with any market I recommend contacting a local professional property manager.   Self manage or professional manage just make sure to get an opinion of rents from someone who really understands the rental market.  Sec 8 works better in some local municipalities than others.   Are you going to take Sec 8 renters?   Work through some of these details before jumping into investments in other markets.   I think great money can be made in the sec 8 market but we have been involved with cleaning up the mess many OSS investors get into when they don't know the answer to some of these questions before they buy. 

    [email protected]918-728-8080
    4Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Son Tran

    What is the going rent in Edmond for a 2 bedroom single family home ?

    0Reply
  • Son Tran
    Rental Property Investor · Oklahoma City, OK · Member since 2019 · 50 posts · 33 votes
    6y

    @Anthony Petrozzella

    2BR? I think around 800-950 max, depending on which area in Edmond.

    I would normally avoid 2BR, it’s harder to rent out than 3BR.

    2Reply
  • Anthony Petrozzella
    OP
    Nesconset, NY · Member since 2016 · 25 posts · 11 votes
    6y

    @Son Tran

    Great advice ! Thank you !

    0Reply
  • Alex Waugh
    Property Manager · Edmond, OK · Member since 2019 · 20 posts · 21 votes
    6y

    @Anthony Petrozzella

    My name is Alex. I'm glad to hear Oklahoma has caught your attention. I'm a property investor in the state as well. I just bought this duplex in Edmond a few months ago. Looking to buy a quad next. What are you shopping for? Quick Tip: If you're investing in multifamily, always make sure each unit has its own meter. Otherwise, you could be caught with the bill each month. 
     

    4Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Mark Keeler & @Ron Todd thanks for the shout out. We look forward to connecting @Anthony Petrozzella.

    4Reply
  • Alyssa Dyer
    Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
    6y

    @Alex Waugh Hampton Park area? I love those! Good buy. 

    3Reply
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