We are looking at going under contract on a 20 unit multifamily in Tulsa and want to get the opinion of the group on the investments in the Tulsa market. We've done research on the market and traveled to Tulsa to walk the property. We see opportunity there, but is the juice worth the squeeze as the projects we take on are usually heavier value adds.
The area we are looking to initially purchase is in South Peoria. We were told by contractors, project managers, and our agent during our visit that the area north is gentrifying and it is flowing toward South Peoria.
What cap rates are we seeing in Tulsa right now? Also, what are you seeing as far as price per unit for rehabbed properties?
Thank you in advance! Have a great day!
There are 'pockets' of south Peoria that are more desirable than others. I buy and hold for section 8 rentals in north peoria area. Not much appreciation but cash flow very well. I would think your cap rate for that area would be 8-15% depending and would appreciate. I would guess your rents would be @ $600-800 for 2 bed and $700-950 for 3 bed. My numbers may be low for the retail market and increased demand. HTH.
Thank you for the insight! The rents you mentioned are in line with our projections since we plan to rent to Section 8 tenants.
The property we're looking at is in the St. Thomas Square area, near Riverside Dr, which I hear the areas near the river can be more desirable.
Very good. That area is perfect for section 8 and should fetch their higher rent amounts per bedroom (THA or OHFA). Good luck with your acquisition. If you need boots on the ground I can be available.