I live in a dead market what to do.

I live in a dead market what to do.

Rental Property Investor · Altus, OK · Member since 2021 · 21 posts · 14 votes

To start off the market I live in (Hollis, OK) is dead and the town has always been declining but I do have the opportunity to invest in other towns close by but they are still small towns which don't really work for the brrrr method.

Should I start looking into long distance? I've definitely considered fort worth, Oklahoma city, and Lubbock since there's more opportunity and they are growing cities not declining. My biggest issue is trying to learn these cities without being in them. I plan to go to some rei events to hopefully network and find people that are like minded.

In the meantime my plan is to buy properties locally and attempt to flip them to fund the purchases in these bigger cities. Does this seem to be a good idea or is it better to just stay in these smaller towns that I know? I just feel it's going to be hard to grow fast in these smaller towns.

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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
5y

Love when people say it "can't be done" in small town USA.  I have made a blessed living for 30+ years investing in rentals and flips in smaller communities.  While people here hope to find 1% rentals in bigger cities,  all of my rentals are 3%+ with a few over 6%.  Flipping is all about the by in small towns.  As long as you can buy at the right all in price,  there will always be a buyer

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  • Rental Property Investor · Baldwin, NY · Member since 2015 · 69 posts · 21 votes
    5y

    @Tanner Cole

    Find out what’s growing in your towns, what’s not growing?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    I dont know about dead   Cowboy Kent Rollins lives and does his U tube cooking show from there its his world headquarters and he is a U tube legend.
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Eric James:
    Originally posted by @Greg H.:

    Love when people say it "can't be done" in small town USA.  I have made a blessed living for 30+ years investing in rentals and flips in smaller communities.  While people here hope to find 1% rentals in bigger cities,  all of my rentals are 3%+ with a few over 6%.  Flipping is all about the by in small towns.  As long as you can buy at the right all in price,  there will always be a buyer

    There you go. My last couple purchases in small towns were SFH for $13k and $8k. About $20k in rehab and then appraise for around $60k and rent for $800.

    I know its a new day but i tried this in fly over country and the only issue was I could not get more than 3 to 6 months of rent at anyone stretch as the local tenants were basically living at the poverty level.

  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Eric James:
    Originally posted by @Greg H.:

    Love when people say it "can't be done" in small town USA.  I have made a blessed living for 30+ years investing in rentals and flips in smaller communities.  While people here hope to find 1% rentals in bigger cities,  all of my rentals are 3%+ with a few over 6%.  Flipping is all about the by in small towns.  As long as you can buy at the right all in price,  there will always be a buyer

    There you go. My last couple purchases in small towns were SFH for $13k and $8k. About $20k in rehab and then appraise for around $60k and rent for $800.

    I know its a new day but i tried this in fly over country and the only issue was I could not get more than 3 to 6 months of rent at anyone stretch as the local tenants were basically living at the poverty level.

    Yes, that happens to me about half the time. But when it does I keep their security deposit and have the house rented out again within the month, so I generally don't lose any rent income. 

  • Investor · New York, NY · Member since 2019 · 18 posts · 6 votes
    5y

    @Tanner Cole

    I would def suggest looking out of state. In my experience the biggest factor stopping individuals (including myself initially) from investing out of state is a limiting mindset. But it’s actually an advantage (and skill) that you will have over your local competition. As an out of state investor, you will have a business model that you can replicate in any market while local investors have not developed that skill/muscle yet.

    I’m a commercial multi family real estate syndicator.

    My targets for any market is:

    30% population growth over the last 20 years

    40% median income growth over the last 20 years

    50% median home value growth over the last 20 years

    City-data.com is a great resource for finding this data.

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    5y

    @Eric James

    My typical all-in is $25k that rent for $650-800.  The sentiment here on BP is that these are C-D properties in terrible areas with bad tenants which could not be further from the case.  Most are brick homes and most of my tenants are teachers, police and city workers.  

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    5y

    @Jay Hinrichs

    Most of my rentals are in 2 small Texas towns with my tenants being teachers, police in city works.  They know if they screw me over they are not likely to find similar accommodation in town as I am considered the landlord with "nice" properties.  Of course nice is a relative term as there they love the tile counter tops, cheap backsplash and the most inexpensive laminate or tile

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Greg H.:

    @Jay Hinrichs

    Most of my rentals are in 2 small Texas towns with my tenants being teachers, police in city works.  They know if they screw me over they are not likely to find similar accommodation in town as I am considered the landlord with "nice" properties.  Of course nice is a relative term as there they love the tile counter tops, cheap backsplash and the most inexpensive laminate or tile

    were I tried this was in rural fly over land .. and of course some years ago..  and just did not have enough success for us to continue.

    I suspect you hand pick your tenant and manage them.. we had to trust a smallish PM.. and in those days the rental pool was very small. I have one left and its been performing pretty well the last few years..  Although if I lived in those markets I would be on it and fully engaged and make it work

  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    Could you look at Weatherford or Lawton?   Both of those places seem to have some demand drivers.

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Be careful about vacancy. I have seen some buildings in small towns that are constantly operating at 70% capacity. There isn't always a demand for rentals. Flips are nice but I like stuff where if market crashes can still rent it out for a backup. 

  • Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
    5y

    @Tanner Cole Buy long distance short term rentals. The numbers are crazy and you can manage from anywhere and get in for less than 20% down

  • Sarita ScherpereelBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
    5y

    @Tanner Cole I went to college at Oklahoma City University. I was talking with a college friend looking at markets like Warr Acres, Bethany and as far west as Yukon. Warr Acres feels like part of OKC when your driving. Maybe ask these other realtors in the market to chime in on value slightly outside the city. -please forgive me if this leads you nowhere. It’s been a while since college :)

  • Real Estate Agent · Oklahoma City, OK · Member since 2018 · 40 posts · 17 votes
    5y

    @Will Fraser shhhhh stay away from Chickasha 🤗

  • Rental Property Investor · Altus, OK · Member since 2021 · 21 posts · 14 votes
    5y

    @Connor Cushman honestly this has been my favorite idea.

  • Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
    5y

    @Tanner Cole hit me up on Instagram. Would love to chat more @cushmanhomes

  • Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    5y
    Originally posted by @Cleotha Euwins:

    @Will Fraser shhhhh stay away from Chickasha 🤗

    Well said! 

  • Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes
    5y
    Originally posted by @Tanner Cole:

    @Greg H. Hollis has a population of around 2000 and the closest major city is about 2 hours away. I'm not saying it cant be done here but in 20 years the major cities will still be there. I can't say that hollis will still be here 20 to 30 years from now. So I don't want my investments to go down in value over the long term instead of up.

    Yep, I am only guessing, but the people saying small town investing is a good idea are probably talking 10-20k + population and closer to major cities.

  • Rental Property Investor · Altus, OK · Member since 2021 · 21 posts · 14 votes
    5y

    @Forrest Faulconer that's most people's idea of a small town not 1800 and the closest major city is 2 hours away.

  • Real Estate Agent · TX · Member since 2021 · 5 posts · 2 votes
    3y

    I am new to investing in Altus and have sold 4 properties there within the last 5 months. Right now I have 3 that just listed with a local realtor. Looking to connect with investors in Altus or surrounding area. I live in Fort Worth

  • Hollis, OK · Member since 2019 · 5 posts · 4 votes
    3y

    @David Acuna I don't know about @Tanner Cole but I am so swamped I can't buy anything else for a bit I have already closed on four properties this year should close on another next week and if everything goes as planned we will be breaking ground on another set of storage units by the end of next month. So I need to let the dust settle a bit before buying anything else but I will definitely keep your information and hit you up in the future when I start looking again. Thanks, Sorry Tanner for butting in on your thread hope you don't mind. 

  • Rental Property Investor · Altus, OK · Member since 2021 · 21 posts · 14 votes
    3y

    @Adam Bromlow no harm no foul. I really need to step it up. I got the appraisals done on my properties and need to pull the money out and find another property

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