All Forum Posts by: John Kunick

Scott, I've owned many rentals and for a long-time.  I've always done the best in Bixby and Broken Arrow.  Although I have no personal experience, I've heard Jenks and Glenpool are also good.  Depending on your goals, I would be careful of North Tulsa as they tend to be C type properties with lots of headaches.  Yes, they can be profitable, but in my experience, just not worth the hassle.

IMO, one of the unintended consequences of the unconstitutional Eviction Moratorium is that the very people that were said to be helped are going to be the ones hurt the most long-term.  Thus, we raised our screening standards to make sure we know the backgrounds of any tenant and are re-doubling our efforts to verify rental history and employment..  In the past, we might look past questionable marks or situations.  Not now..  Those that took advantage of landlords via the EM should not be rewarded! @Ryan Bird, IMO, it really matters what class of property you are talking about.  In your case, an A property is probably the most ideal situation to attract quality tenants as they tend to be "aspirational" with their most likely next step being home ownership..  Class B is probably the best situation right now with tenants that can't afford to buy, but have to keep renting, but want to be accountable/responsible to move up to Class A and eventual home ownership..  Class C is where you will most likely want to avoid if you are looking to build your portfolio..

@Ryan Brown, when I got into rentals many years ago I did a survey of several landlords in terms of what was customary for this market (as you are doing now)..  Interestingly, I have purchased some homes that came with refrigerators (they were not rentals when I bought them)..  So, when I had tenants ready to move in, I offered to donate the fridge to them if they needed it with the understanding that they were liable for any repairs.  I think I had one or two that the tenants had their own, so  I think I either sold it or donated it to someone who needed it.  It's been several years ago so I forget the exact details.  Bottom line: not providing a fridge and washer/dryer is customary here..

@Ryan Brown, I've been doing rentals in Tulsa for many years.  I provide stove, dishwasher and microwave..  I do not provide refrigerator nor washer/dryer.  What I do is pretty typical as I have many friends who are landlords and we've compared notes.

I agree with @Bruce Woodruff, but would add the importance of doubling your efforts on verifying employment and especially checking with previous landlords about rental history.  Depending on how open the employers and landlords are, you might consider asking questions specific to how the prospective tenant performed during the last couple of years.

Originally posted by @Eric Bilderback:

@Rick Albert

That will inflate prices higher and put even more leverage into an already hyper financialized bubble.  If you want poor people to have housing get them better jobs, CA could stop letting tech companies import employees crack down on immigration so native Californians have a chance and employers can't pay next to nothing for wages.  

I love investors my self identity is a real estate investor,  but the last thing we all need is more perks from the government.  We are getting rich and other people who own assets are getting rich and everyone else is getting left behind.  

Eric, I totally agree with you..  More government programs to solve this issue will only make matters worse.  As some have pointed out on this thread, a lot of what got us in this mess is government programs.  When will we learn to quit relying on government or at least asking "how can government solve this issue"?  As Nathan and many others have wisely pointed out, there are opportunities for individuals to solve these issues and make a lot of money in the process.  It is going to be up to the individual, not government, to solve theses.  We just got to pray that government gets out of the way!

Hi everyone, enjoyed reading this thread.  But, the initial question is which markets are best for cash flow...  I know cash flow may not be the most important to all, but the question was specifically about that topic.  So, I would say the best cash flow markets tend to be in midwest/south markets where appreciation is not as "wealth-inducing"..  As someone else pointed out, this is a very specific strategy and can be extremely lucrative especially if you can scale # of properties fairly quickly..  Some very good examples of these markets are Tulsa (where I live), OKC, Indy, Wichita, KC, etc...  BTW, this specific strategy can also have some great tax advantages..

@Daniel Han, if you can find a good multi-family or self-storage syndication deal, you can easily get 5-9% COC w/ potential for upside.. I've done some where the COC ended up being closer to 10% and then the total ROI upon disposition was 20%+. Those deals are getting tougher given cap rates, but they are still out there.

I have also recently been doing some hard money lending getting 7-9% COC, but they don't offer upside..  You can get 7% while still keeping the funds relatively liquid.  The 9% assumes you are keeping the money tied up for 5 years.

@Nathan Gesner, thanks for your post..  I've posted much of your sentiment on many other threads.  In short, many of these tenants are taking advantage of a situation that government created.  Government has done similar things in the past that they say is "helping" one group of people or another when, in the long run, it hurts the very people they claim they will help.  IMO, it's basically liberal politicians creating dependency which creates dependable voters.  It's very sad for the whole country..  Bottom line: the people that have been taking advantage of these programs will be hurt the most as landlords will not rent to them in the future.

Full disclosure: during this whole eviction moratorium, we only had one person that we "evicted" due to non-payment.  This person said he was applying to various rental assistance programs which we helped him locate.  But, he was not willing to follow-through.  He then became non-communicative which ultimately led to us doing a "Pay or Quit" notice.  He left and we got a much better tenant in the property.  At same time, we had two other tenants where their jobs were impacted by COVID.  They communicated the situation and we worked with them and all parties stayed in close communication until they were able to get caught up.  Most landlords will work with tenants who are communicative and responsible.

I have investigated this one, but have yet to invest simply because my MFH syndications keep out-performing.  But, I am impressed with their performance
https://www.reliant-mgmt.com/