All Forum Posts by: Kiera Underwood

@Kristina Boothe BRRR from out of state is a big jump! I have helped people pull it off, but it takes a ton of trust. You absoltuly have a leg up in that your husband is a contractor though. Do you plan on traveling to the location to do the renovations or trusting a property or project manager?

Regardless congrats on that 508k!! 

In Oklahoma City you can BRRR, but for an out of state investor and with repair costs still being inflated it's tough for a true brrr to allow you to leave less than 20% in the deal. It's doable, but it's tough. I actually just passed on a duplex in a developing area that I was ready to purchase. The price looked right, but my bids came back too high. If you're doing your own repairs, that could open you up quite a bit. I'll look out for your thoughts!

@Jordan Naeem so excited that you're getting started! I love the using your primary residence to begin the process approach. I did the same thing! Luckily we both live in markets with great numbers, so in that alone we're a step ahead! I help a ton of investors get started in the OKC market and they're almost always out of state investors that I love educating. But I am so grateful that I got to get my feet wet years ago with first hand knowledge! You're in a great spot in the process. Good luck! 

@Lain McCanless I just came across a 330k duplex in a premium/tourist focused area of Oklahoma City. The PM I'm connected with manages short term rentals and the numbers are looking like when positioned as a STR a 40k net annual take home if you pay cash or 16% cash on cash if you finance. At the least OKC should be on your radar! Happy to answer any questions.

Section 8 does have federal guidelines they have to follow!

There is a checklist on their website that you can find that goes over everything, but honestly it's so subjective by each inspector that we stopped using the checklist. Basically the inspector doesn't have a checklist they follow & they can use their own discretion. We came to this consclusion after talking to several other property managers and inspectors themselves. Our rule of thumb is that if the city is going to give you a thumbs up as far as code and have a permit passed then that's a great starting point. Everything more cosmetic is very discretionary. 

Let me know if you have any other questions! Good luck with the project.

@Alex Talcott exciting! What all will you do on the trip out? 

@Boruch Vann I've worked with hundreds of out of state investors over the last couple of years! You can absolutely start your portfolio from out of state. That said, there is risk involved and you'll just want to make sure that you're working with a team that you can trust. Read their reviews, talk to investors that have worked with them before, look at what they've sold and how it's performing. If you'd like to talk about what it looks like feel free to ask any questions at all. I'm happy to share my experience! 

@Michael Fay have you considered the Oklahoma City market at all? We've been exceeding population growth projections, it's super landlord friendly and the numbers are great! As an example you could buy a SFR for $160k that is occupied and already nets $200/month or set it up as an STR to net $600/month. I'm curious how numbers compare! That said so much of success relies on the team you're working with. Do you already have a great team in Little Rock?

@Hector Valadez most of the investors that I work with are from SoCal and the Bay Area but they're all buying in Oklahoma City. It's landlord friendly, taxes are around 1%, insurance is affordable, numbers are getting better every day and I would say on average you can buy rentals at around a 7% cap rate. At a 160k price point that's a net cash flow of about $200/month. Short term rentals are doing great here as well! I hope this is helpful in comparing markets! As you explore different markets feel free to ask any additional detailed questions in order to compare OKC to anything you're looking at! Good luck getting started! 

@Sean Bramble while I'm not overseeing STR syndications at this moment I am involved in selling/setting up STRS in Oklahoma and syndications are on my radar so I thought your post was interesting! Would love to hear more about what you're doing!

@Khanh Tran congratulations for gearing up to buy! I'm happy to overview what purchasing in OKC looks like for you. We can talk about norms as far as vacancy, maintenance, insurance costs, taxes, city regulations etc. What questions do you have? Excited for you to take the leap in this market! 

@Jenni Brown I can speak more specifically to my market, but when investors are looking here it's about risk vs reward and cash available. There's a bit more risk here with STR because regulation is developing and changing. Also you've got to weigh drops in occupancy through the recession and the up front cost of furnishing. A turnkey LTR is more predictable with less setup costs. However, the returns here on STR are sometimes double that of STR. There's a property I'm working on now that's 163k and cash flowing as an str at a net of $200/month but as an STR it will net $600/month. That's after factoring for maintenance, taxes, insurance, PM @20%, vacancy, utilities, and mortgage payment @ 6%. Are you able to run numbers like that to make a comparison for yourself?