Oklahoma City - Cash Flow Being Experienced

[Zac Celli]

Hey there BiggerPockets Community!

Hoping to find some good information on Oklahoma City rent. Can anyone here tell me what kind of cash flow they are seeing for buy and holds in OKC? To my knowledge, it is a good cash flow market with decent appreciation. I am not familiar with taxes or insurance of the area, and I don't know the tenant quality of the B or C class areas in the city that would affect monthly repair costs. To be more specific, assumptions below:

Property Value: $180,000

B or C Class Area

Mortgage on the property of $135,000 (Either refinanced through BRRR or Retail Purchase Through Traditional Lending)

Managed by property management company

Net Cash Flow: ??

[Cassi Justiz]

You've already got some great info on here, but I thought I would add in a little bit of my personal experience. Cash flow is super specific to each person and how they run their numbers. I have some investors that want to budget 50% of gross rents to "expenses" and they do cashflow based off that, while other investors just calculate rent over mortgage payment as "cash flow." I have had several investors purchase homes as rentals in this price point, so I can give you some example deals and you can calculate your numbers. 

For $180k you can get a new/newer construction home with upgraded finishes and highly rated schools.  Depending on the specific neighborhood, time of year, leasing agent, etc these homes are renting out from $1250-$1600/month. I had an investor buy a new construction home in Yukon for $181k which rented for $1395/month. A similar style home was purchased by another investor last month for $179k and is currently up for lease at $1295/month. Similar homes in the neighborhood were leasing out for $1600/month in the Spring and Summer months. 

Taxes typically run between 1.0-1.3% for the OKC metro area. It will depend a little bit on the specific area, but that's a good ball park. When I'm doing rough numbers I will ball-park taxes at $1/sq ft per year. Typically you will get it for less especially if the home is new/newer construction. But that will provide a little buffer as you run your cashflow numbers. 

The property managers in this area run between 8-10% of collected rents/month unless you go with someone charging a flat fee. 

Hopefully that helps!