Oklahoma City Distressed Properties - Price Range Concern

3 Replies

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!

1% or something very close to it is definitely possible here. full-blow no money in the deal brrrr is tough. in majority of cases you'll still have some kind of cash tied up in the deal. do you know what areas of the city you're trying to focus on yet?

I'm so over OKC.  It's gross.  That's why everyone is running from it.  You should, too.

Just kidding.  IMO OKC falls under the category of "better get it while the gettin' is good."  Zillow Offers is working to roll out their "awesome" product in OKC in 2020 and, even though scads of individual investors have recognized the value, the hedge funds and institutional money haven't flocked here yet, so we're still seeing great buys in most niches and an overall ability to achieve a good balanced Cashflow/Appreciation strategy.

Hoo Rah!

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@Victor S., Thanks for the response! No, I dont know which portions of the city yet, I'm going to be reaching out and beginning discussions with realtors and PMs here tomorrow and this coming month while simultaneously researching areas & submarkets. Any Suggestions?