Thinking about investing into OK.... any areas to look at??

Question

Hi Everyone, I'm considering investing into OK real estate and looking to buy a rental property. I have a question to all the locals. Specifically, which areas should I be looking at? I've been pretty stuck looking at Norman and OKC (specifically south with 73072 zip code due to good schools). Are there any specific cities I should also be looking at?

Kristen Simmons · Answer

Oklahoma City is huge area wise, with some areas being great for investors and other areas a little more risky. Anything in OKC near downtown, plaza district, midtown, paseo, gatewood, these are all worth looking into. Edmond, Moore, Mustang and Yukon are all suburb areas outside of OKC with great school ratings and low crime rates. Norman is a great area, that's where I live and love it! With the university here, Norman is a solid area to collect property in! Tinker Airforce base is on the SE side of OKC, there are quite a few good pockets for rentals in that area too. But you want to be careful getting into the Del City area on that side of town. They have a lot more restrictions and city permits to comply with. Hope that helps!

Nate Sanow · Answer

Hey Alex, a lot of us might pitch our local market especially if we are in a sales role… Nothing wrong with that, but I’m curious about your specific goals. As it would IMO affect the outcome of what to pick. In general terms OKC and Norman are definitely more “metropolitan “ and in fact Normans college town appeal is hard to beat if student housing was a goal, for example. I own a rental in OKC  and did a flip in Norman so I don’t blame you if you focus there. I’d say appreciation, job growth and population growth are the strongest there of any part of the state.

The Tulsa area is a little smaller - and I’ve often said and I think I’ve been quoted saying - Tulsa is where OKC was last decade… that hard to find delta of opportunity with upside and affordability intersecting. Tulsa is more of a huge town / small city hybrid. Which is both incredible for finding affordable albeit rare sub 100k deals, but also challenging as the development is more like turning a cruse ship not a speed boat.

Personally I’m putting most my eggs in the Tulsa basket. I’ve had so many contact me from out of state about it, be in this platform or others. Normally my competitive nature says second place doesn’t count but with regards to a billionaire named Elon saying Tulsa was the runner up to Austin for possible relocation, I’ll take it. I feel like Tulsa is just 1-2 larger developments away from REALLY being on the map.

Lastly, I’d say back to my first paragraph it depends on your goals. For example most of our Suburbs will offer abundant opportunities for turnkey, low headache properties with newer construction. If your allergic to dealing with a few delays or inconveniences I’d say go for post 1990’s construction where the slabs tend to have less foundation issues, for example. Anything 1970’s & 80’s in Oklahoma either does or will have a foundation issue. My personal risk tolerance is high, as I literally live in a 70’s house that is obviously re-settling. I’m ok with that because I’m betting on the long term outlook of my area.  But if that’s intimidating I’d really suggest newer builds, beyond foundation the mechanical systems will typically be newer and more up to code with less issues (again I speak in general terms). The lion share of our newer construction is in the suburbs especially in the Tulsa area. In Oklahoma City I think that’s true as well (but that’s more of an assumption as I’m not as active there).

I hope to have helped a pinch my 2 cents ain’t worth a nickel sometimes. Good luck to you as you continue to survey our great state!

Zach Sikes · Answer

@Alex B.Great job working towards investing in RE in OK! We help a lot investors purchase and manage property, and we get that question a lot.  The short answer is it depends.We have some great tools to show you exactly where other investors are buying, where the value adds are, and where investment properties are being sold.  Each different area has its pros and cons, so we ask new (or new to the area) investors the following questions:

- What class of property are you comfortable with?

- Do you prefer a lower risk property with lower return or a higher risk property with higher return?

- How many properties do you plan on purchasing in the next 12 months?

- How long do you plan on holding the properties?

- Do you prefer cashflow or appreciation?

- Would you like us to manage the property for you?

Once we get those questions answered we can point you in the right direction.

Ben Scott · Answer

I'd second the comment about staying away from Del City. But broadly speaking, any area of the northwest metro in a good school district is a safe bet. There's potential upside on the northeast side of Oklahoma City. Southside OKC between I-240 and I-40 has opportunities for cash flow but less appreciation avenues. The 1% rule is harder to find these days since seller confidence is sky high. So don't let waiting for a home run deal in OKC prevent you from taking action.

Seth Young · Answer

OKC and Tulsa, OK are great markets for long-term buy and hold properties. Population is continuing to grow and rents are increasing. According to Fannie and Freddie Mac Home Pricing index, the home values in both markets increased by around 40% in that past 5 years. Both have stable job markets. @Alex B.

Dahlia Khalaf · Answer

@Alex B. Hello, I own a brokerage here in Tulsa and we specialize in investment property. Tulsa and the surrounding cities are a great place to invest. We have a huge demand for rentals and not enough inventory. We have seen a lot of great appreciation as well as rental rate increases here in the last 2 years. Would be happy to chat about what we have to offer.

John Burg · Answer

I am in Tulsa so naturally I am going to recommend T-Town. If Tulsa is of interest I would love to have a chat. I am new to REI but have experience from my w2 in healthcare facility management. Looking for opportunities to partner and be boots on the ground for assets.

Alex B. · Answer

Great thanks for the info above, that is very helpful. Living in DFW, property tax is what gets me as it’s 2.5% of value, so I was looking at areas with lower tax rates which would be driving distance away. Thanks again!

Thinking about investing into OK.... any areas to look at??

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