Buy/hold vs flip in okc

Buy/hold vs flip in okc

Edmond, OK · Member since 2014 · 14 posts · 0 votes
I am in OKC area and was originally looking to buy and hold. Now I am thinking fix and flip may be more profitable. The catch is I am only interested in paying cash for either rental or flip due to risk tolerance. After analyzing a few deals over the weekend it seems difficult to find deals that will net me more than 8-10% ROI (stock market average is around 10%). I feel for all my effort, if I don't make more than investing in mutual funds it's not worth it, sure it's a diversification strategy but still too much work. Are there deals to be had for a cash buyer that I simply haven't found since I am as green as they come or am I on to something when analyzing from a cash only basis? One deal I found I as an example: purchase price 60k + 30k repairs = 90k all in. Comps selling for 135k. Net after agent fees approx. 32k-ish. Wouldn't it be better to flip than to have 90k tied up with house renting for 1250 per month? What say you?
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  • Salem, OR · Member since 2013 · 701 posts · 159 votes
    11y

    Most experts believe the stock market is high and will return closer to 6% per year over the next 5 years.  The last 3 years have been great.

    I look for rentals that will give me 8% cash flow + 2% to 3% appreciation.

    I buy flips which will profit 20% over a 6 months period.

    For most deals I have had to invest out of state.

    The flip that you mentoned would give me my 20%.

    Good Luck.

    Bill

  • Zach SikesBusiness Member
    Residential Real Estate Broker · Edmond, OK · Member since 2011 · 452 posts · 183 votes
    11y

    @Eric Noland 

    Don't forget to factor in the time when calculating your return.  If you can do 2 flips per year with that money, your return doubles. 

    What part of town are you interested in?

    HCO Leasing4.198 Reviews
    Homestead & Co4.9172 Reviews
  • Edmond, OK · Member since 2014 · 14 posts · 0 votes
    11y
    Zach Sikes - I was originally targeting the village area but this house popped up in NW okc (Putnam city) and looked like a good opportunity. I also like that it was built in late 70s as opposed to 50s.
  • Zach SikesBusiness Member
    Residential Real Estate Broker · Edmond, OK · Member since 2011 · 452 posts · 183 votes
    11y

    @Eric Noland 

    Are you wanting cash now or long term cash flow? You can always rehab and rent then set up a heloc on the property to buy more or flip more. 

    HCO Leasing4.198 Reviews
    Homestead & Co4.9172 Reviews
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    11y

    watch the pc schools areas.  they can be a bit spotty.  some hold value great others are struggling a bit.  

  • Edmond, OK · Member since 2014 · 14 posts · 0 votes
    11y
    Looking long term (early retirement). Have plenty of cash flow now with day job but would like to be rid of it before 65 ;)
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