Oklahoma City and Tulsa Rental Market Good?

17 Replies | Oklahoma City, Oklahoma

I'm looking into buying in Oklahoma city and Tulsa, for a rentals.

How is the market there? Is there a demand for rentals, do they rent fairly quickly?

Do the tenants pay rent and take care of the property? I'm looking at lower priced houses.

How is the job market? Crime?

Any locals want to give me some feedback?

It's horrible, you should stay away.  LOL, just kidding.

It's like anywhere really,  all depends on the area.  Lower priced houses you are probably looking at D or C class houses at best, and just like anywhere else it comes with that class of tenants and problems.   Tough to do from out of state, but not impossible.

OKC is no longer the hidden gem it was a few years ago,  there are a LOT of out of State investors here and it's driven the prices up.  The deals aren't as easy to come by as they were a few years ago, but there are some to be found if you look hard enough.  

Not sure about Tulsa, we don't have anything there.

@Cynthia Miller To many of your questions I would have to answer, "It Depends". What portion of OKC and Tulsa are you looking at investing in? Do you want B class areas or C - D class areas? Also depends on who you choose as a tenant. I personally, haven't had anything major over my years of investing other than the normal stuff every landlord typically goes through. I would do a little research on the macro economical standpoint and start drilling down from there. You can check out IRR.com or greateroklahomacity.com and check out their 2018 economic forecast. Lots of good material.

I like Tulsa a lot for good ROI. Lots of new development yet nationally behind on home sales means there is a ton of potential to buy low and sell high or buy low and rent for good cash flow. I love Oklahoma in general for investing. My opinion is we have one of the most steady parts of the country to invest into. You're not going to see 100k profits of single deals but you're also not going to lose your lunch if you do some research and networking. I'm here to help and connect you to who I know if you decide to invest here.

Thanks everyone for your for your feedback

Is there a problem with theft there? If I leave my house vacant for a few weeks will it get broken into and stripped?

I have a few rentals in Detroit and theft runs rampant. 

Thanks Nate. I plan to come out that way and just drive around and get a feel for things. Are there any particular neighborhoods I should avoid buying in for rentals? Any war zones?

I'm looking for mainly cash flow but if run across a rehab to flip with a good spread, I'll do it.

Tulsa has some great areas. Depending on what price range you are looking for. Pretty easy to still find a house for 100k that rents for $1000. I manage about 500 SFR in Tulsa and own about 75. Typically lease up time in that range is about 2 weeks if priced right. Never had a vacant house stripped but have had some Ac condensing units go missing

Originally posted by @Cynthia Miller :

Thanks everyone for your for your feedback

"Is there a problem with theft there? If I leave my house vacant for a few weeks will it get broken into and stripped?


We don't spend a lot of time worrying about theft but over the years we've had some tools and materials stolen. We drive by our vacants, keep the lights on, and ask the neighbors to keep an eye out. Recently an investor near us had the copper stripped while they were working on the property so it does happen.  Mostly AC condensers magically disappear. Best of luck to you, it really can be considered a cost of doing business.

Originally posted by @Tracy Streich :

Tulsa has some great areas. Depending on what price range you are looking for. Pretty easy to still find a house for 100k that rents for $1000. I manage about 500 SFR in Tulsa and own about 75. Typically lease up time in that range is about 2 weeks if priced right. Never had a vacant house stripped but have had some Ac condensing units go missing

 Hi Tracy, I have family in Tulsa and I'm interested in rentals there. What areas do you focus on there? Doesn't the north side has pretty high crime?

Thank you, 

Erin

Been watching the OKC rental/purchase market for some time now, also interested in investing there. There are a lot of good fundamentals: population growth, several stable industries (federal government, universities), one more volatile industry with major possible upsides (oil/gas), and most important for the real estate investor, attractive price rent ratios, especially as compared to larger urban areas.

The major thing I've seen that gives me pause is that rents seem like they've been pretty much flat for the past several years, presumably following the oil/gas price crash. Whether that trend will continue is hard to say. Rents generally go up, but I'd be hesitant in OKC to assume that you can raise the rent yearly as you can in most other hot housing markets. 

That said, the market in rental properties by contrast seems very hot. I've had a bunch of offers out and they've all been beaten out by above-asking, all-cash offers that were well above what I'd thought were necessary to make the numbers work. 

So OKC is by no means a secret housing market where it's easy to find great ROI, but there are probably more deals out there than in larger cities. The growth potential of the ROI may be more limited, though.

go buy in tulsa okc is overpriced lol.  i need some room here so please stay away...

Thanks Dave, that was some good information.  Can you recommended any other locations?

Rehett, I don't care where I buy, I'd buy on the moon if I thought I could make some money lol...I will be looking unto Tulsa as well. I did notice prices were cheaper there 

Originally posted by @Cynthia Miller :

Thanks Dave, that was some good information.  Can you recommended any other locations?

Rehett, I don't care where I buy, I'd buy on the moon if I thought I could make some money lol...I will be looking unto Tulsa as well. I did notice prices were cheaper there 

 Hi Cynthia, first of all, I agree with most of what you have read on this thread.  Full disclosure: Tracy Streich and I are tennis friends, but have no business dealings, and he knows what he's talking about since he has a broader portfolio than I do.  

But, I do have an extensive portfolio in South Tulsa and have done extremely well with them.  I did venture to North Tulsa last year and did well, but not well enough to off-set the extra hassles that come with that level of house/tenant.  That is a personal preference, IMO, but I know I can make more than enough in South Tulsa with minimal headaches.  Therefore, I am in process of converting my North Tulsa properties to other less headache investments.

Overall, Tulsa still offers tremendous opportunities, but don't expect significant appreciation of sales price.  For that reason, my strategy has been buy and hold for long-term superior cash flow.  On the opposite side, don't expect to see significant depreciation.  These markets just don't have the price volatility that you see in more coastal markets.

So, yes, Tulsa is a GREAT (not just good) rental market.  But, it all depends on what your objectives are and what you are willing to put up with.  Like I tell everyone who asks me for advice:  know your objectives and know your tolerance for hassles.

Best of luck!

Thanks John, good info.  What sort of problems did you have in N. Tulsa?

I have a few properties in Detroit and the Tenants are nightmares so I'm trying to avoid buying in more problematic areas outside of Detroit.

Have you been able to raise the rents? If so how much and how often?

@John Kunick and @Nate Sanow do you have any thoughts on 2-4 unit properties in Tulsa/OKC? Are those considered highly undesirable by good tenants? There seems to be SO few triplexes and fourplexes on the MLS, especially in Tulsa. Have either of you had luck finding off market properties or do you just buy on MLS? I'm really interested in investing in Oklahoma and would love to chat.

@Tara Ballenger full disclosure I'm not a great expert but I am biased toward Oklahoma. It's a safe bet with a great future. Personally, I have bought on and off MLS. There is always a wholesaler ready to sell you something off the MLS but like anywhere you want to verify the numbers yourself. I think that it seems the 2 units are usually more family friendly. Once you hit 4 doors you are usually in a C-class setting. Not always but often. Multi's come up more in OKC than Tulsa. I'm not sure why but I think in part people hold onto them in Tulsa. Anything in OKC for sale seems to be based on the cap created after a longer hold, unless you buy distressed when it comes for sale. I own something at times I want to offload but I'm not saying that to sell it per se, just a thought if you wanted to PM me we could talk more seriously about it there. Zero attempt at selling there just a thought. Besides that, I know tons of legit, good, honest people in OK. Some of whom profit from selling, but are worth it for their knowledge base. If that is of service to you send me a PM for that.

@Nate Sanow all great info - thank you! Was hoping to find a 4 plex in Midtown in Tulsa or Plaza area of OKC. But otherwise I love the duplexes. I just personally like the walkable urban areas. I’m sure they exist but just wonder if owners will let them go.

Do you only buy and hold in OK or do you flip?