Considering Tulsa to buy a rental property

17 Replies | Tulsa, Oklahoma

Hello All,

I live in California and am considering buying an investment property in Tulsa. While a simple search on Zillow/Realtor shows several properties in Jenks, Bixby and Owasso (those three areas came up as safe with good schools) that meet my cash flow criteria, I'm hoping to get local investors' take on the rental market outlook and if there are any specific areas to avoid. Any info you could share is much appreciated!

-Pavan.

Hey Pavan! Id love to help ya out! Im born and raised here in Tulsa, live in Broken Arrow and have siblings who live in Bixby and Owasso! Jenks, Bixby, and Owasso are all great places to look into. They are growing fast and are generally safe places with the better school systems. Im pretty new to the investment community so I haven't gotten much of a chance to analyze any properties so I couldnt give you the average rent or anything, but as far as being a local, youre definitely in the right areas! If there's any questions that you have about the areas, or need someone to go lo ok k at a house and take pictures or anything, please feel free to message me at anytime! Best of luck!

Claremore is a great suburb market as well because they have RSU there. I just sold 3 units in claremore that needed about 30k in work for 85k and my client plans to rent it all for $1800 per month. I would be careful of the 61st and peoria area in tulsa and north of pine st tends to have a bit more skeptisim as well from my investor friends. That being said I know people that have rentals up there and do well but they have a hands on management approach. I really like around downtown tulsa because that is where I believe the path of progress is and it tends to have good Cap rates.

@Pavan A. , It's good to here Owasso is peaking some interests! I live in Owasso and am familiar with the rent rates for the different neighborhoods. I have 4 of my 5 kids enrolled in the Owasso Public School System. If you need boots on the ground in Owasso, I'll be your guy! Look forward to hearing from you. 

Those are good places as far as schools and quality of life. However, the property taxes and insurance costs are higher. They also do not offer as high a return on investment (in my opinion).

You might consider Sapulpa, Glenpool or Sand Springs

, They are working class areas and are more affordable for most renters.

My Jenks house is 1950 SQ FT cost $210K and rent is $1500.00

My Glenpool house is 1235  SQ FT cost is $115K and rent is $995.00

They are 4 miles apart.


@Pavan A. my sense is that there are a number of solid rental property candidates throughout Tulsa County. Many of the good and the bad have already been covered above. Realtor.com has a solid crime statistics map that's helpful as well. We have two duplex deals working now that are at the right discount price so we are on ARV target after we complete the rehab. Both will outperform the one percent rule. The biggest advice I can offer is to make ad offer that meets your business requirements and see what happens. All the best.

Originally posted by @Guy Yoes :

Those are good places as far as schools and quality of life. However, the property taxes and insurance costs are higher. They also do not offer as high a return on investment (in my opinion).

You might consider Sapulpa, Glenpool or Sand Springs

, They are working class areas and are more affordable for most renters.

My Jenks house is 1950 SQ FT cost $210K and rent is $1500.00

My Glenpool house is 1235  SQ FT cost is $115K and rent is $995.00

They are 4 miles apart.

Guy, I guess you may overpaid on your property? Properties in Tulsa should easily pass 1%. By the way, if you are in Springfield, MSU's student rental is making more sense.  

@Maurice George

Perhaps I was not clear. 

The Jenk's house in desirable area cost 180K in 2007. The value today is 210K   Rent for the property went from 1200 to 1500 over that time period. This house sold in February for 198K  Nice house, nice area but smaller returns due to taxes and insurance.   I did live in the property for a period of time before selling.

The Glenpool house cost 79K  in 2015 and rent went from 850 to 995 over 5 years.  This house is now on the market listed at 125K. 

The Glenpool is the last house I own in the Tulsa area. I am 1031 the houses in OK and replacing them with Duplexes in the Branson area. Duplexes cost 100K (X5) 500K and they have long term renters paying 600-700 per door. 

With value added to them (new roofs, painting  and repairs ) totaling 8700.00 They now appraise at 128K.

The point of the comment was that Owasso, Bixby, Jenks and some parts of BA do not offer the return on investment that you find in Sand Springs, Sapulpa, Glenpool and West or North Tulsa. 

I bought quality homes needing work. Added value with repairs grew the rent over time and used the 1031 to save on taxes. My renters stayed an average of 4 years and I never lost a month's rent.  

It really depends on your appetite for risk and your long term REI plans.

We looked at MSU area ( wife teaches there now) but the college has new housing options and the tenant turnover is an issue.

The Branson duplexes are retirees who have rental histories ranging from 3 years to 12.  No children and 1 pet limit.

I think i'll stick with this route.  

Originally posted by @Guy Yoes :

@Maurice George

Perhaps I was not clear. 

The Jenk's house in desirable area cost 180K in 2007. The value today is 210K   Rent for the property went from 1200 to 1500 over that time period. This house sold in February for 198K  Nice house, nice area but smaller returns due to taxes and insurance.   I did live in the property for a period of time before selling.

The Glenpool house cost 79K  in 2015 and rent went from 850 to 995 over 5 years.  This house is now on the market listed at 125K. 

The Glenpool is the last house I own in the Tulsa area. I am 1031 the houses in OK and replacing them with Duplexes in the Branson area. Duplexes cost 100K (X5) 500K and they have long term renters paying 600-700 per door. 

With value added to them (new roofs, painting  and repairs ) totaling 8700.00 They now appraise at 128K.

The point of the comment was that Owasso, Bixby, Jenks and some parts of BA do not offer the return on investment that you find in Sand Springs, Sapulpa, Glenpool and West or North Tulsa. 

I bought quality homes needing work. Added value with repairs grew the rent over time and used the 1031 to save on taxes. My renters stayed an average of 4 years and I never lost a month's rent.  

It really depends on your appetite for risk and your long term REI plans.

We looked at MSU area ( wife teaches there now) but the college has new housing options and the tenant turnover is an issue.

The Branson duplexes are retirees who have rental histories ranging from 3 years to 12.  No children and 1 pet limit.

I think i'll stick with this route.  

 Your Glenpool one yields a great return. For Branson, if this works for you, that will be great. But I always scratch my head on know how Branson could attract retirees in the winter time? My in-laws have investment properties in Arizona, Charleston (SC), and Florida. They always love to spend their winter there. However, I have no idea why retirees want to live in Branson for winter. 

These are people who are retired and downsized from a larger property. They are not wealthy and don't want to do up keep on their property or pay someone to do it for them.  they have family in the area of Springfield and like the idea of being close to the lake. They are on a fixed income and/or work part-time in the area (i.e. Silver Dollar City). The duplexes are modest 3 bed/2/bath/2 car garage and are 1248 sqft.  One Story with fenced yards and 1/3 mile from Walmart. The vacation condos and duplexes are a different set up. 

Originally posted by @Guy Yoes :

These are people who are retired and downsized from a larger property. They are not wealthy and don't want to do up keep on their property or pay someone to do it for them.  they have family in the area of Springfield and like the idea of being close to the lake. They are on a fixed income and/or work part-time in the area (i.e. Silver Dollar City). The duplexes are modest 3 bed/2/bath/2 car garage and are 1248 sqft.  One Story with fenced yards and 1/3 mile from Walmart. The vacation condos and duplexes are a different set up. 

Guy, I never think about retirees living in Branson for the winter. I will take a look at this to see some opportunities. My in-laws spend all their money buying condos in rural communities in West Coast and Panhandle of FL over the years. They usually get their condo booked two years in advance.