Oklahoma City Niche?

Question

Hey guys, I am new to BP & just wanted to hop on here to get an insight on what people would consider their more successful properties. Are they Short-term rentals, Duplexes, Condos/Apartments etc.? I just recently started a new position as a commercial credit analyst for a community bank in Edmond, OK so, I do have some experience crunching the numbers for all types of commercial RE from a banking standpoint. My long-term goal is to transition into a commercial lender/RE investor, but for now I am just soaking in all the info I can. Also, curious to know what areas in Oklahoma are better for SFR?

I would appreciate any feedback!

Will Fraser · Answer

Oh cool!  I thought Frazer bank went OOBiz, and I'm glad to hear that there is good blood in those veins!

Braden Alexander · Answer

I know someone who is there, but I am at Frazer.

Braden Alexander · Answer

That is interesting to hear. I appreciate your feedback!

Dan Crosby · Answer

Here's my opinion:

1) SFHs: management intensive, lots of appreciation in good areas, more maintenance

2) Duplexes, triplexes, 4plexes, and so on: same as above, but with some economies of scale.

3) industrial: amazing cash flow, sometimes vacant for months, easy management.

4) Apartment buildings: forced appreciation, economies of scale, and simple management if managed by a third party (which I recommend).

5) Retail: I'd never do it unless it was leased to a grocery store, pharmacy, healthcare facility, etc.

Will Fraser · Answer

@Braden Alexander, welcome to the community!

You don't happen to be with Valor, do you?

Shawn McCormick · Answer

@Braden Alexander

Welcome to the forums. I'm sure you will get plenty of good feedback here. I'm in Florida and our STR models have always been strong, well before the Airbnbs of the world. I can't speak to your market, but I would suggest meeting up with local investors at the REIA, networking with Realtors that specialize in STR and work with investors to get input on what's working there.

At the end of the day, you have to do what's right for your investing goals. It isn't a one size fits all and real estate isn't trendy, typically it builds wealth over a period of time. So go with what you are comfortable with, what fits in with your time/lifestyle and of course your budget. Some niches can be time consuming 'jobs' and it sounds like you already have one of those, so perhaps something more passive.

Best of luck!

Ben Scott · Answer

Hey @Braden Alexander, in my experience the STR market has become saturated and it can be more difficult now to avoid vacancy and fulfill guest expectations. I recently pivoted from the STR model to medium term rentals for 30-90 day stays. That being said, some of the rock star Air BNB hosts are still killing it.

Marlon Fong · Answer

Welcome to the site @Braden Alexander!  It's great to have you here.

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