Banker · Norman, OK · Member since 2019 · 23 posts · 5 votes
Hi! I'm a new investor located in the Norman, Oklahoma area. Ever since I started learning about real estate, house hacking seemed like a perfect starting point as it has a lower down payment without having to add on the extra complications of partnerships or hard/private money.
However, as I've talked more with other local investors and read forum posts from local investors, the overwhelming message I've gotten is that Oklahoma City (and from what I can tell Norman as well) is a SFH market, with multifamily having far too little stock and far too much demand from both in and out of state investors to be a viable strategy. With everything going on though I don't know if the market might shift to be more favorable to it.
I absolutely want to pursue house hacking if it's feasible, but I also don't want to mindlessly pursue it if the market doesn't support it. So I'm curious, what is your opinion on the viability of house hacking in OKC or Norman moving forward?
Your house hack could be as simple as buying a 3bed SFH and renting out the other two rooms to friends or roommates. That's essentially what house hacking is; gaining equity while someone else pays your mortgage. Just an idea.
Your house hack could be as simple as buying a 3bed SFH and renting out the other two rooms to friends or roommates. That's essentially what house hacking is; gaining equity while someone else pays your mortgage. Just an idea.
House hacking is definitely possible. You just have to be patient to find a deal and then very quick to act on something once you see something that fits your criteria. Also, save as much money as you can for a down payment because you may be competing with cash and investor buyers that are paying list/over list to get multifamily properties.
I started my house hacking with a SFH. I bought an affordable 3/2/2 in a good school district and lived there for a few years with roommates. I easily could have lived for free had I known about "house hacking" but instead I just split expenses with my roommate(s). I did some cosmetic updates while I lived there and then moved out and turned it into a full time rental property. It is currently my best performing rental.
Thank you all for the input! The thought of getting a single family unit and renting out the other rooms had completely slipped my mind, I'll definitely look into that, thank you!
@Joel Bullock it's also important to remember that when you're house hacking you're snagging a property at only 3-5% down and you're lowering your cost of living. You're also likely self managing and maybe even doing little repairs yourself. All of these things will help the performance of your rental. You don't have to get a blow your mind 10% cap rate to make sense, especially with you cutting out some of the expenses along the way. A duplex is possible. A single family home will give you more options to choose from!
@Joel Bullock good luck! I'd connect with a lender and start getting those ducks in a row. I LOVE Marcie Hines/The Hines Team at Cornerstone. They are next level customer service & they understand investing in OKC. Marcie and her husband personally invest. Let me know if you want an intro!
@Alyssa Dyer Thanks! I would greatly appreciate an intro! I've been holding off on talking to lenders or realtors so far, because I've been waiting to see how everything going on plays out for the next month or two. I'm worried about wasting their time if how things unfold make it infeasible for me to buy a house at this time.
@Ben Scott Thanks! I'm making sure to focus on learning more every day and taking daily steps towards that goal. I just don't know how things will continue to change due to Covid-19 and with it resurging in the US right now, I don't want to just ignore the potential ramifications. If nothing terrible happens though I'm planning to purchase sometime between Nov and Jan, so I feel comfortable waiting and learning for a month or two while I wait to see what happens.
To add to @Joel Bullock ‘s question. Does anyone know the market for renting out just a room or two in your house in Okc/Norman area for house hacking? Is there a market outside of family/friends?
I have also been looking mostly to buy a MFP or place with a studio/apartment unit but they seem to be nonexistent.
Switching my mind over to potentially a SFP and house hacking as I am only “home” about a month of the year but need Oklahoma to be my primary residence. Thanks in advance for helping us newbies learn!
If you're only home one month a year, have you thought about buying a SFH property and renting out as an Air BNB when you're traveling? I think there'd be a big market in Norman. There are companies that will take care of cleaning, stocking supplies, etc.
@Crystal Hoover A tip I read someone give a while back was to go onto places like craigslist and facebook marketplace and see what the market for renting rooms is in your area. I imagine you could also use that to see how popular/feasible it is too! Any other answers would be awesome too though cause it's a question I'm curious about as well haha!
Hi Joel--- I'm in Norman as well. I'm a Realtor/Investor. As you know, Norman is full of cash developer investors and parents who over purchase properties for their college kids to live in. SFH's are becoming too expensive for most median income families and finding affordable housing is becoming increasingly difficult. Let's chat. I'm curious what your thoughts and ideas are. Feel free to message me here and we can exchange contact info!