I am currently living in Tulsa and am interested in starting my rental portfolio.
I know North Tulsa isn't the nicest part of town but I was curious if anyone has an experience doing buy and hold rentals in this area. If so I would like to hear about your experience and what the pros/cons are with investing in this market.
I have rentals in North Tulsa and some of them have been section 8 in the past.
You can get good tenants in North Tulsa by doing a good screening. This goes for any location of course. And by showing your tenants that you have treated a house with care and attention to detail, you can set the bar high for them as well.
The ROI numbers look great in North Tulsa. Plan for potentially higher vacancy rates and when vacant I'm always concerned about vandalism though that hasn't been a major issue. Overall I have no regrets with my North Tulsa houses.
Bank loans may be harder to obtain because the properties are cheap. Tax and insurance are very cheap as well. It literally all comes down to placing a great tenant. That is definitely harder to do in this area.
Hi Jeremy. I don't own property in North Tulsa, but do think it is a great time to look at buying. There is a lot of interest in North Tulsa, and many people flipping houses, causing neighborhoods to start turning around. Also, there is money to be made in Section 8 housing, and lots of renters waiting for a house to become available so there is a guaranteed renter pool. I know section 8 housing isn't for every investor, but I like the idea of helping people when I can, and still make money.
Hey, Section 8 is the FEDERAL RENTAL ASSISTANCE PROGRAM. Grants or applications are unique to the town, county, state LOCAL ADDRESSES. I am also interested in such properties as if the Renter is on the Federal Approved list ( as opposed to the City,County,State accepted Renter Certification;
The location is approved anywhere in the U.S. and the Rent is paid by the Government Agency
directly to the owner each month. So never any late or missing payments. Depending on where the property is one or more inspections by a local agency rep. is required in home to make sure the renter is live alive and home and the correct person as well as minimum habitability is keep working or repaired as original lease.
David Land Partners in Enterprise is a lot more Profitable !
With the section 8 housing do you know if the Tulsa Housing Authority would responsible for paying all the rent or if they just pay part of the rent to make up for the tenant's lack of income? I'm curious because if the rent is guaranteed to be paid by the government then that would help mitigate risk but if the tenant pays part I would still have to account for the risk of part of the rent not being paid each month
Hi Jeremy. I am currently waiting on THA to schedule the inspect on my first north Tulsa section 8 rental. Each voucher is different depending on their income. Tenant pays 30% of their income and cannot go above 40%. I'm not overly concerned about tenants portion not being paid. It takes them about 3 years to get the voucher and they won't want to do anything to jeopardize losing it. You turn in your own signed lease with their voucher and all of that gets approved first.
Section 8 housing is not a guarantee of payment. I had a 42 unit complex that was all section 8. Many times I would not get paid due to failed inspections. In every case, this was damage caused by the tenant that the tenant never paid to be repaired. One was a just a broken window pane. I went, at my expense, and fixed all the problems. It was over 60 days before I got the back rent. Be very cautious with section 8. I prefer tenants that can pay their own rent.
I have rentals in North Tulsa and some of them have been section 8 in the past.
You can get good tenants in North Tulsa by doing a good screening. This goes for any location of course. And by showing your tenants that you have treated a house with care and attention to detail, you can set the bar high for them as well.
The ROI numbers look great in North Tulsa. Plan for potentially higher vacancy rates and when vacant I'm always concerned about vandalism though that hasn't been a major issue. Overall I have no regrets with my North Tulsa houses.
Bank loans may be harder to obtain because the properties are cheap. Tax and insurance are very cheap as well. It literally all comes down to placing a great tenant. That is definitely harder to do in this area.
I would not recommend section 8, you have to rely on the government to get you your money and if they slow pay for whatever reason you will be the one that is affected, not them and not the tenant. If you are in a market that this is the only type of tenant you may want to focus in another area. I know personally that waiting on government housing to get to you when its not a priority can be a painstaking time span. Also remember that lower rent range properties statistically are more time consuming for management time. If you have a few you may not have a time issue, But if you want to scale you will eventually run out of time and if you have to wait for government money you could get squeezed on time.
Good morning. I'm reviving an older thread here, since I hope that it flags to the original posters who invest in N Tulsa.
I'm out of state, but grew up, lived and worked in Tulsa and NE Okla for many years. I have a small amount of money to invest and am looking at N. Tulsa or west Tulsa. Looking for "C" ish property. Buy and hold. Not naive, I've managed 80 units that were D or less so I have a fair idea what I will be getting into.
I'm looking for people and advice. Wholesaler, lender, etc. Input from people who are there. I will be driving to Tulsa later this summer.
Hi @Terre B. I still have North Tulsa rentals and I re-read my post up above and it still feels accurate. I've had some headaches there, sure, but honestly not more than stuff in South Tulsa or other areas. I have turned over all of my North Tulsa stuff to a Property Manager. Private Message me and I'll get you a couple of wholesalers and a property manager you can talk with. More than happy to talk further as well.
@Michael Slockers I was also born and raised in Tulsa but have since moved out of state. Would I be able to get your wholesale contacts. Also I鈥檇 love to have a quick conversation with you. To hear what your doing and any thoughts on the area you have.
@Michael Slockers I was also born and raised in Tulsa but have since moved out of state. Would I be able to get your wholesale contacts. Also I鈥檇 love to have a quick conversation with you. To hear what your doing and any thoughts on the area you have.
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Just shoot me a Message and I'll get you my phone number so we can talk.
I had planned a quick trip to Tulsa in August, but that has been pushed back thanks to fed govt summons to jury duty. 馃檮. Kinda sucks cause there is a house Im really interested in but need to actually see it. Oh well, bound to be another.
Agree with @Michael Slockers. 1 year later I now have 3 section 8 rentals and a 4th in rehab will be available for section 8 when ready. Ready to start scaling it up. Houses don't appreciate a whole lot but cash flow very well. I have one THA pays the full monthly rent so every case is different.
@Gregg Benningfield This is a bit off topic but with the recent $10,000 incentives for employees of some tech companies from the SF Bay Area to move to Tulsa, has that impacted the market ?
@Milo Jocson I couldn't tell you if that is directly impacting our market or if it's the Covid or what. I can tell you housing of all kinds is in short supply and heavy demand.
Reach out if you need help locating deals in North & West Tulsa. We get more deals then we can keep there all the time because we mainly buy South & East ourselves. So, when we have excess, we wholesale some, flip some, and sell some turnkey to out-of-state buyers who prefer to pay a little more to have no up-front repairs, and a turnkey unit already occupied with property managers in place.
@Gregg Benningfield This is a bit off topic but with the recent $10,000 incentives for employees of some tech companies from the SF Bay Area to move to Tulsa, has that impacted the market ?
It is shifting the market some. I am a transfer of this program and have bought 21 doors in less than a year. I am one of five other investors (that I know of) that have come into the market because fo Tulsa Remote. There will be another 200 families this year, and they usually rent and are willing to pay more.
Also, Cannabis money is driving up rents as well. A fair amount of out of state money is happening here.
Reach out if you need help locating deals in North & West Tulsa. We get more deals then we can keep there all the time because we mainly buy South & East ourselves. So, when we have excess, we wholesale some, flip some, and sell some turnkey to out-of-state buyers who prefer to pay a little more to have no up-front repairs, and a turnkey unit already occupied with property managers in place.
Contact request sent. I would love to connect. North and west is my target area, as Im starting with a limited budget and hope to do most of the rehab myself.
Reach out if you need help locating deals in North & West Tulsa. We get more deals then we can keep there all the time because we mainly buy South & East ourselves. So, when we have excess, we wholesale some, flip some, and sell some turnkey to out-of-state buyers who prefer to pay a little more to have no up-front repairs, and a turnkey unit already occupied with property managers in place.
Hi Jeff! You mentioned you work with OOS investors? My hubs and I are relative newbies to OOS buy-hold REI, we acquired our first two properties in OKC just last year. Exploring Tulsa for our next rental investment. Would love to connect with you and see if we can work together!