Should we pull the trigger on these properties? First time investor in Tulsa

[Sunny Karen]

We are new to real-estate investing in the Tulsa area (have a couple properties in CA, MI)

Why Tulsa? Conservative appreciation, reasonable cash-flow and long-term outlook for the city looks good. No crazy growth and hopefully no crazy downfall. The economy looks to be slowly diversifying away from Oil and unemployment is low in OK. I consider it a hybrid for appreciation and cash-flow. We have friends and family in the area who can help out though we will be OOO and use a PM company.

We are mostly targeting SFH, Duplexes, Fourplexes. I am evaluating 2 deals out there, and was hoping to get feedback on.

3/2 duplex - new construction in Sand Springs neighborhood (hopefully low capex for first decade). Purchase price: $365K; Rents: 1600 * 2 (3200); With 25% down - PITI would run about ~$2200; Property Management (8%) + Vacancy (5%) + Capex & Maintenance (8%) - I would cash-flow about ~200/month.

2/2 duplex - new construction in West Tulsa neighborhood. Purchase price: $300K; Rents: 1250 * 2 (2500); With 25% down - PITI would run about ~$1800; Property Management (8%) + Vacancy (5%) + Capex & Maintenance (8%) - I would cash-flow about ~100/month.

Cash-flow right now isn't very important for us (as long as it's not negative). Our plan is to hold long term (10+ years) and likely pay it off in 5-10 years to act as supplemental retirement income which we plan to get to with a couple more properties paid-off in Tulsa eventually.

Would you pull the trigger on these two properties based on our goals? I trust the builder and will get a through inspection done.

[Clay O.]

I live in Sand Springs, have properties in Sand Springs and West Tulsa. If the duplex that you’re considering is the one I am thinking about then all the below apply. They built 5 or six of them right together right off of highway 97. The guy that built them is  an upstanding guy and does the right thing. I have spoken with him a few different times at the investor meet ups. I question how much you can get for rent.  1600 seems a little high to me for a duplex in this area but if you can get it, that just raises what I can get for mine. Some things to consider, trailer park behind the duplexes, highway directly in front. Trailer park is good and highway is not super busy as it just goes between Sand Springs and Sapulpa. Schools will be a great draw for this property and you can be on I-44 in about three miles so if you work in Tulsa no big deal. I currently live about two miles from there and was considering keeping this property for a rental. It’s 3bd 3bth garage and about 1700 sqft. Complete remodel in last year fenced in back yard.  I was thinking I could get 1600 to 1800 in rent and my agent also said the same thing. I am not sure the price difference you can get between duplex and sfh but I think  you can rent a  house for about that same price, if you can find one. Rentals don’t last long in this area. I do know one of these have been for rent for a few months but there are tenants in one of the other units.   Again this all applies if it’s the one I am thinking about. If you want to give me the address or approx location of the one in west Tulsa I can give you info about that one as well  

Good Luck.