All Forum Posts by: Kiera Underwood

The PM team I work with allows clients to never go to the property. Most of the owners that I work with are out of state and have never even been to Oklahoma! I couldn't imagine the owners I work with having as much success with out the boots on the ground team. There's so much attention to detail beyond cleaning that contributes to the ideal "feel" and reaction to each property. After each unit is cleaned and before check-in a member of the PM team I work with goes over and does a ~30 point checklist to make sure all the i's are dotted and t's are crossed. I could see a world where this could be automated on paper, but like some commenters mentioned before it feels like the real person problem solving goes notably far in terms of bang for your buck.

@Andrés Aguilar I totally understand. I work in real estate every day and I invest in OKC as well. Even though I'm local to OKC I don't attempt to manage my own properties, especially STR. Luckily I am connected with a great STR property management team that takes care of every detail. They did the design work, ordering, set up, approval with the city and manage the day to day operations with guests and cleaning etc. It's felt as hands off as an LTR! There was more upfront cost, but my property is kept in pristine condition and constantly has eyes on it. My turnover costs with LTR eat me alive, so I'd rather spend a bit upfront and just keep it nice. My cash flow can be saved for major mechanicals instead of 10k make readies every couple of years.

@Sean Haran if you end up exploring other markets I can overview Oklahoma City for you. Some key things to consider are that purchase price is super approachable ($150-$250k) and even with today's interest rates you can cash flow with the right positioning. With financing you could spend 80k and cash flow $100-$200 per month on average and with $200k cash you could cash flow ~$1000/month. Most of the people I've introduced to this market are in CA and looking for something that makes more sense. Taxes are low here and laws are landlord friendly. Feel free to ask questions here or I can get on a call. Whatever is most helpful! Good luck! 

@Andrés Aguilar I think you've got your answer below as far as tornados. If you want to prevent insurance claims I'd just look for a brick exterior and make sure your roof is insurable before close! 

You can look to a bit higher risk areas for more appreciation potential while coming closer to cash flowing today. Are you set on investing with the long term strategy or are you also open to short term? 

@Jae Bok Lee your name is so familiar have we connected elsewhere? I'm also happy to give you an overview of what it looks like to invest in Oklahoma City. Even here with current interest rates it's been tough to cash flow on long term rentals this year, so I and so many investors I work with are pivoting to short term. Is that something you have any interest in? If you'd like to see what it the process and returns look like just let me know. Good luck in your market exploration! 

Most of the owners I work with use Table Property Management. Happy to connect you if you'd like. They do short term and long term management. What are you looking for? 

@Waneeshe De Hughes I'm happy to overview the Oklahoma City market for you to compare to the other places you're considering! OK taxes are around 1% of purchase price and I've seen Texas taxes be pretty tough on returns. Most of the people I work with are in CA and looking for cash flow here. With current interest rates you almost have to position as a short term rental and almost all of my clients have no experience with that. I have in-house management that does all of the design, clean up, ordering, set up and licensing with the city. Let me know if you'd like to discuss! I can also answer questions about investing OOS in general, so don't hesitate to respond with any questions! 

@Tina Kouchinsky STR is a lot to bite off, so I would only go that route if you have a property management company that's well versed in it and can show you examples of rentals they manage with great reviews.

In Oklahoma City I help investors buy properties and help them plan the positioning or strategy. Most of the time with today's interest rates you can only cash flow if you position as a short term rental. My clients have comfort with that route because I have in-house property management that does the design plan, ordering, set up, city approval, ongoing management and cleaning of the property. 

So many investors have always thought of investing via long term rental so the mental switch is super hard to overcome. Even for me it was tough to switch gears but these factors pushed me over the edge: 

- The properties that are fit for STR are in better condition and better areas vs what/where you would need to purchase to cash flow via LTR. This gives me more optimism around the long term appreciation potential.

- (Good) property managers for STR keep a VERY close eye on the property so your always stay in good cosmetic and mechanical shape.

- Long term rental is so often associated with costly turnover. I see an average of ~10k spent on most C class cash flowing rentals. I would rather spend 30-40k up front in making my property perfect (furnishing, cosmetic upgrade, fees) vs coughing up 10k every 2 years to clean up renter messes. 

Let me know if I can answer any questions! 

 @Samuel Lynch said it perfectly! I work with a lot of investors in your spot. Too expensive to invest at home, but too new to feel comfortable branching out anywhere. If you want to start exploring other areas and what help is out there you can put Oklahoma City on your list and I'm happy to provide you an overview of opportunities. I do a full service approach for my out of state guys so that you have your bases covered without having to be an expert on the market or be here in person. I'm sure there are other reputable similar providers in other markets! As a key highlight in OKC you could buy, improve and furnish a short term rental for under 200k. On an average deal you would net around 1k per month. Happy to answer any questions about OKC! Good luck! 

@Vani Anand are you interested in getting started locally or are you open to other markets that make sense? I ask because I'm happy to share what I and the investors I help are doing with you, but I don't want to waste your time if you're hoping to stay focused in Atlanta. I'm Oklahoma City based but I am cash flowing and helping others cash flow even at a 7.63% interest rate! Just let me know if breaking down the steps of investing here would be helpful to you. Good luck!!