All Forum Posts by: Ben Scott

Investment Info:

Single-family residence buy & hold investment in Oklahoma City.

Purchase price: $98,000
Cash invested: $36,000

I sold a previous rental property and used the $36k proceeds as a downpayment on this home using a 1031 Exchange. This home had already been remodeled and was in great shape. But it wouldn't sell! Reason: the buyers were FHA and there is a loft above the garage that serves as a third bedroom. Appraisers would not give credit for that square footage due to the ladder to access the room being too steep. So I got a fairly good deal. The seller was using the home as an AirBNB so it was fully furnished with a washer/dryer. I asked for all the appliances and furniture as part of the deal.

I've been operating this home as an AirBNB since January 2020. I've averaged about $300 in profit each month. There is the hassle of maintaining all utilities, internet, etc and making sure the property is clean. But its been profitable so far. Hit me up for tips on operating an AirBNB

What made you interested in investing in this type of deal?

I've been very interested in the Air BNB space.

How did you finance this deal?

Local community bank with a 15-year loan.

How did you add value to the deal?

Added some furnishings and marketed the home as a short term rental.

Please join us Thursday, Feb. 17 from 6p-8p for our quarterly OKC Bigger Pockets Meet-Up. Newbies and veteran investors. All are invited. Let's network and grow together. We'll meet at Prairie Artisan Ales, a brewery tucked inside the 8th Street Market Building north of Bricktown. 

Oklahoma City hasn't had a devastating tornado since 2013. Seems the southeast (Kentucky, Alabama, etc) is the new tornado alley. 

I second what @Adam Martin said. Your landlord policy will be more affordable as you're not insuring the possessions inside, just the structure.

Great purchase. I agree, that are is kind of on the fringe, but the surrounding areas are slowly gentrifying.

Hey @Chris Cooper, is this the 4-plex in Del City? I've been told to shy away from Del City in the past due to municipal code enforcement but maybe this wouldn't be an issue since these units are so new. Definitely a unique property. Are there value add opportunities where you could create two bedrooms in the 900+ sq ft?

Please join us for our bi-weekly virtual call to talk Oklahoma City real estate investing. All are welcome. Local and out of state. No pitch. No products. Just like minded people talking OKC real estate. Invitation below.

Topic: OKC Bigger Pockets - Jan 26
Time: Jan 26, 2022 01:00 PM Central Time (US and Canada)

Join Zoom Meeting
https://us02web.zoom.us/j/5073...

Meeting ID: 507 366 4228
Passcode: pockets

Hey there Marque, I've represented a handful of clients that purchased small multi-family (2-4 doors) with an FHA loan and did a house hack on it. I believe as long as the unit is less than four doors its allowed by FHA.

I'd second the comment about staying away from Del City. But broadly speaking, any area of the northwest metro in a good school district is a safe bet. There's potential upside on the northeast side of Oklahoma City. Southside OKC between I-240 and I-40 has opportunities for cash flow but less appreciation avenues. The 1% rule is harder to find these days since seller confidence is sky high. So don't let waiting for a home run deal in OKC prevent you from taking action. 

Congrats @Chris Ivy on getting the deal closed!