First post on the forum so let me know If I need to move it to a more appropriate page.
I'm interested in buy-to-rent and have created a short list of six locations (see below) I want to investigate further. The next step I'd like to take is to travel to the location to 1) meet as many people in the area as possible to start building a team and 2) visit some properties.
- Odessa / Midland, TX
- Mobile, AL
- Atlanta, GA
- Raleigh, NC
- Charlotte, NC
- OKC, OK
What questions do I need to be asking to focus my attention from these six areas to one in order to visit?
A few people have suggested evaluating the states based on how friendly they are to landlords, which seems reasonable - are there specific laws surrounding landlords / tenant relationships that should be my priority.
Hi Andrew, I’m from Okc and have currently been living in Midland for the last 15 months. I will say that Midland RE is very expensive - you buy high but you can also rent high (when oil is good). On the flip side, Okc is cheaper but the rent will be somewhat lower. However, I feel that Okc has a more stable economy. Midland is very oil-dependent so when that tanks, more than half the population leaves (so I’ve been told). That doesn’t answer your question about which states are landlord-friendly but I thought I’d let you know about the market here - not to scare you off, but just so you’re aware because I had no idea until I moved here.
Hey @Andrew McCalister,
I'm originally from Lubbock, TX (about 2 hours outside of the Midland/Odessa area) and living in the OKC area now. I agree with @Monica Pogue. Midland/Odessa rentals can do really well, but they are very cyclical. Home values/rents can drop up to 30-50% when there is an oil bust. Like Monica said, it's also a very transient area. Tons of people come in to work when oil is booming and leave as soon as it drops. If you are looking to buy specifically in that area, I would consider Lubbock. It's more stable and doesn't have any major cyclical factors. There is also a lot more industry in Lubbock and a large university.
The OKC market is a lot more stable than the Midland/Odessa area. We do have some oil economy factors, but it's a larger city and has a lot more economic diversity than the Midland/Odessa area.
I have rentals in both West Texas and OKC. I continue to buy in OKC over Lubbock. The price/rent ratio is almost identical but the taxes in OKC are literally half of what I pay in Lubbock.
Feel free to reach out if there's any way I can help. I'm not super familiar with the Midland/Odessa market, but I am happy talk about the Lubbock or OKC areas.
Thanks so much for your input. Very helpful.
Thank you for the details response.
Beginner question here - you mentioned taxes are a deciding factor when choosing between Lubbock and OKC. What specific parts of the tax code are you referencing?
The property taxes are what I am referring to. The property tax rate in the OKC metro sits around 1% while the property tax rate in Lubbock is about 2%.
Thank you. Presumed that was what you were referring to.
@Andrew McCalister I'm an investor, agent, and property manager in Lubbock. I specialize in helping long distance investors acquire and manage cash flowing real estate in the Lubbock area. Lubbock offers a lot of opportunities if you buy the right kinds of properties. I actually have quite a few clients in your area, because real estate prices are so cheap compared to anything in California. I'd be happy to help you take a deep look at the Lubbock market. Feel free to message me or contact me at (806)773-1929. Thanks!