Hey ya'll! Just wondering if some Tulsa investors could comment on the rental market there? I'm a Tulsa native and see a lot of potential growth there. Living in Denver currently and just wondering if most people in Tulsa really rent or is it affordable enough that most people buy and the rental market is lackluster. Specifically looking around the TU and Florence Park area. Also, will be home for Thanksgiving next week and would love to network with other investors or real estate agents who know that area well.
The Tulsa rental market is doing great.
Zillow.com recently named it the 3rd best city in the nation for small landlords.
Housing is plenty affordable, but the housing stock was not overbuilt before the downturn like many other places so there is a good balanance between rental properties and owner occupieds. We are still seeing strong rental demand and getting properties leased on average less than 1 month on the market.
TU and Florence Park are experiencing good price appreciation as well as rental increases. If you haven't been by the TU area recently, you should. TU has purchased a bunch of real estate on the outskirts of campus and redeveloped it. The campus is getting better by the day and the area is really thriving.
As Nate mentioned, Tulsa is great. Your investment goals will dictate where you invest. I am managing a rental in Florence park that is about to come online for $1450/month and is in the $200,000 range. I personally invest in lower income properties for improved cash flow. I have three, 3/1/1 properties that have an average investment of $55,000 each. Two rent for $750 and one rents for $825. That's $165,000 in real estate generating $2325/month compared to this $200,000 Florence park home that we hope will generate $1450/month.
Get a good property manager. I am pretty happy with myself, but I hear Nate is good too.
thanks @Nate Garrett and @Chris Simmons! Excited to check out the area when I'm home next week!!
Tulsa native in Denver too! Anyways my family has rentals back home that seem to do just fine. They sold some several years in the TU area before the expansion:(
I would love to find places that cheap here in Denver.
Hi there. I too am a Tulsa native however my investment approach appears to be slightly different than the rest of the posters here. I have found greater success in renting in the suburbs where I can buy $150k properties and rent them out for $1400-$1600/mo. That helps accommodate an easy 50% rule, I get newer houses, longer term renters (not students and single party-goers), etc. When I finance with low rates it increases my return exponentially. I am wanting to purchase another 5-10 properties in the next year, but inventory stinks at the moment. My approach is to develop cashflow rather than appreciation. Fortunately I have picked up quite a few properties in the past few years and they are generating a solid return for me... If I were seeking appreciation, I would (or would have been) looking in the Denver market. The economics of Tulsa's housing market doesn't appear to be beneficial for significant home appreciation IMO.
@Callum K. I unfortunately don't think you'd find a ton of appreciation in the Denver market right now unless you'd purchased a while back-- prices are truly unbelievable… for everything! Additionally, there are SO many investors it's hard to compete unless you're swinging in with a cash deal. I am hoping this is another bubble and prices become more reasonable over the next year or two, but it's hard to find anything right now. Tulsa, while probably not appreciating a ton, seems to be a very stable market! I am currently debating between the two-- trying to decide whether I am comfortable having a long distance property… even though I do have friends/family in the area and I'm comfortable with the market. It sounds like you have a good strategy with the larger suburban rentals! I would love to branch out, but my niche is smaller, urban properties for young professionals as that's what I'm familiar with myself.