Investor · Edmond, OK · Member since 2017 · 25 posts · 6 votes
I live in OKC, but I'm considering investing in Lawton. However, I am not really familiar with the area. Any investors holding property in Lawton? How's the rental market there? Specifically, how is demand? Any trouble with vacancy?
I worry a little bit that the only major employers/reasons to live in Lawton are the Fort Sill AFB and Cameron University, so if for some reason they close the base, the town population/tenant pool will drastically fall. Any other large employers there?
Also, are there decent property managers in Lawton?
Lastly, as for exit strategy, in 3-5 yrs, when I'm ready to sell my property, are there many interested buyers of MFH's?
Lots of questions, I know. Thanks in advance for your help!
Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes
6y
I love this market--other major employer is Goodyear for instance. Margins are great. Strategic partnering in this market is needed so you can maintain quality of services, and an eye on everything. Overlaid with the economic zones this is a great opportunity market. I am getting houses at 5-20 bucks a sq foot... The legal marijuana business is bringing money into the city bit by bit.
More for your consideration:
The following are links to information that the savvy investor would need to combine investment tactics and techniques to generate high yielding ROI. It considers the offensive and defensive virtues of the tax code, and real estate investing. Offensive virtues are equity capture on the buy, rent, forced appreciation on the renovation, appreciation on the hold, principal pay down as the loan amortizes and the conversion of cash to a physical hard asset to prevent losing buying power as cash sits in an interest bearing account that is outpaced by inflation. The defensive virtues are the depreciation and tax code benefits allotted for investing in incentivized areas and / or using vehicles like Self Directed IRAs that can defer tax liability indefinitely and wash it entirely upon your passing as the monies flow to your children or loved ones.
Real Estate Agent · Mustang, OK · Member since 2016 · 17 posts · 7 votes
9y
I sold my holdings in Lawton. The margins are good and the rental market is pretty good. My problem was I could never find a property manager that served folks as I do in my OKC market. Also, service providers work at their own pace. They were a constant source of frustration for myself and my tenants. It simply became "Not worth it".
Investor · Amherst, NOVA SCOTIA · Member since 2017 · 20 posts · 7 votes
8y
Hi There,
I will be relocating my property management services to Lawton but not for a while. So I am no help on that front today. I am kind of well versed in the Lawton market. At this exact moment I would suggest caution.
Fort Sill recently has a major on base housing project that could last for sometime yet. That means that the 2 year wait list for housing on post is now 2 weeks. Military persons normally bought 80-150,000 homes. Or they would rent those kinds of homes while they waited. A property that rented for 1150 before the building on post is now renting for 900. There is a huge amount of homes on the market and for sale off market. It is a good opportunity if you can afford vacancy but I would suggest when you do your property screening that you double what ever you are using for vacancy now.
Hello, I am currently contemplating investing in Lawton, Ok. I see a ton of good fix and flips as well as good rental opportunities. My concern is on fix and flips. is the market good enough to sale updated properties fast?
Investor · Kaiserslautern, Germany · Member since 2017 · 77 posts · 25 votes
6y
@Derek Greene to be honest from what I have seen depending on what area you plan on doing a fix and flip, they don’t seem to sell fast enough. Even in nice neighborhoods. A few of my neighbors had their houses on the market for many months and they were nice and updated in a good neighborhood.
Investor · Kaiserslautern, Germany · Member since 2017 · 77 posts · 25 votes
6y
@Derek Greene much better especially if you’re in a good neighborhood with a decently sized house because of Fort Sill. Military families are always looking for places to stay off post.
Note: I haven't bought a single property yet, so take this for what it's worth. It seems from other threads I've read that high vacancy rates seem to be a real issue. I've been calculating at 8.3%, which is a one month vacancy every year, and there seem to be a lot of properties that should cash flow MF homes specifically. I've even done some of the properties at a 16.6% vacancy, 10% CapEx, and 10% maintenance, along with Zillow's estimates of fixed expenses and a few still seem to work, and some work very well, on paper at least. One thing that may be worth considering is shorter term leases to attract these army guys that may or may not be stationed there for a full year. I've known a few service members, not in the Lawton area however, and the consensus seems to be that they would have been more attracted to shorter leases so if they get deployed or restationed they're not on the hook for a year lease. Any thoughts here? Anyone already in the market have experience with these issues and found a solution that works?
Rental Property Investor · Oklahoma City, OK · Member since 2016 · 34 posts · 33 votes
6y
As an alternative to shorter leases, you can include a military clause in there that allows them out of the lease in event of deployment or change of station.
Investor · West Point, NY · Member since 2017 · 8 posts · 5 votes
6y
Military members can use the Servicemembers Civil Relief Act to get out of a lease,If they have military orders. In my experience, Soldiers are fine signing 12 month leases, because it's relatively easy for them to break the lease without issue.
Note: I haven't bought a single property yet, so take this for what it's worth. It seems from other threads I've read that high vacancy rates seem to be a real issue. I've been calculating at 8.3%, which is a one month vacancy every year, and there seem to be a lot of properties that should cash flow MF homes specifically. I've even done some of the properties at a 16.6% vacancy, 10% CapEx, and 10% maintenance, along with Zillow's estimates of fixed expenses and a few still seem to work, and some work very well, on paper at least. One thing that may be worth considering is shorter term leases to attract these army guys that may or may not be stationed there for a full year. I've known a few service members, not in the Lawton area however, and the consensus seems to be that they would have been more attracted to shorter leases so if they get deployed or restationed they're not on the hook for a year lease. Any thoughts here? Anyone already in the market have experience with these issues and found a solution that works?
Shorter leases are not necessary if you’re targeting military.
The most important part of you want your rental to be successful is location and size. An alternative to renting is AirBnB. It’s pretty decent for making money here during graduation season for Fort Sill. You just have to get a good crew together to help you make it work. It can be time consuming trying to do it by yourself.
Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes
6y
I love this market--other major employer is Goodyear for instance. Margins are great. Strategic partnering in this market is needed so you can maintain quality of services, and an eye on everything. Overlaid with the economic zones this is a great opportunity market. I am getting houses at 5-20 bucks a sq foot... The legal marijuana business is bringing money into the city bit by bit.
More for your consideration:
The following are links to information that the savvy investor would need to combine investment tactics and techniques to generate high yielding ROI. It considers the offensive and defensive virtues of the tax code, and real estate investing. Offensive virtues are equity capture on the buy, rent, forced appreciation on the renovation, appreciation on the hold, principal pay down as the loan amortizes and the conversion of cash to a physical hard asset to prevent losing buying power as cash sits in an interest bearing account that is outpaced by inflation. The defensive virtues are the depreciation and tax code benefits allotted for investing in incentivized areas and / or using vehicles like Self Directed IRAs that can defer tax liability indefinitely and wash it entirely upon your passing as the monies flow to your children or loved ones.
Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes
Lawton, OK · Member since 2017 · 48 posts · 25 votes
6y
I'm using “Rent Lawton”. They manage 17 units for me in the Lawton market and do a great job. They have an ability to find great tenants, which is unusual in this market.
Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes