Oklahoma City For Real Estate Investment?

Question

Hi,

I am a real estate investor from California and seeking insights. I am considering to invest in a single family residence in Oklahoma City, closer to Bricktown. Can someone guide if Oklahoma would be a good choice being high on the tornado index? Additionally I read that the appreciation in Oklahoma may not be as strong. One attractive factor for me is the recent announcement of the tallest tower planned to be build by 2030 that was recently approved with no height restriction. Trying to get ahead before the area experiences appreciation due to these multi use towers. Also, the ROI seems better than California. Thank you for your time.

Michael Ewers · Answer

I would look into the Del City area. The rental demands in that pocket are great and down the road from Bricktown. We've been in OKC for 7 years and haven't any tornado issues.

Ben Scott · Answer

Oklahoma City agent and property manager here. We haven't bit hit by a big tornado since 2013. It seems tornado alley has moved a bit east in the last 10-15 years. Oklahoma does have very high insurance premiums relative to other markets due to frequent hail storms. We recommend our out of state investors look at SFHs in suburban areas around the city with good schools. Less turnover and deferred maintenance. Most of the homes built in the urban core of OKC are 1950s or older.

Betsy Nolan · Answer

KinnariOKC is great. We did have a place in LA for 18 years. Cash flow is better here, but appreciation is less (CA is off the charts for this metric compared to most of the country, so it's not that OK is bad- depends on your goals and expectations). OK is more landlord friendly. Less people are long term tenants here, though, so expect more turnover. Historically the slower appreciation is probably true, but the market has changed. OKC is growing like crazy. In the right area, you will probably do well. However, you probably won't find a single family home in Bricktown. Nothing against Bricktown, but it is more apartment buildings/condos in terms of the housing. There are other areas in the "urban core" that might be more what you are looking for. Try SoSA district, Paseo, Jefferson Park, Uptown, Wheeler, Plaza District etc if you are specifically looking for SFR. Plug in with a local realtor. Agree with AJ Wong above re the tower thing- if it gets built, great. But don't make investment decisions on that. Overall, though, economic growth in OKC is doing well v the rest of the country. More big employers are coming here. Industries are more diversified than in the past when the local economy went however the oil and gas industry went.

Madelyn Brignac · Answer

Hey Kinnari! I love that you see the potential in Oklahoma! I would absolutely say the best time to invest in Oklahoma would be yesterday. I am currently working with an investor from California who just finished up a flip here in Oklahoma City and we've already got quite a lot of eyes on it within 24 hours. Tornado wise- it really depends on the location you're looking at. I would love to connect you with my broker who is also an investor in Oklahoma City and hop on the phone with you as well to help pinpoint concerns you may have and provide more clarifying information if you're interested- I do also understand if you have a lot of agents in your inbox or one's you're comfortable with already so this is no pressure at all!

Taylor Anderson · Answer

Hey Kinnari!Welcome to the OKC market! You're going to have significantly more affordable prices here to invest and the market keeps gaining strength! There are a number of things to consider when investing in ANY market when doing so out of state and OKC is no exception! Risk tolerance, price point, level of rehab, and exit strategy to name a few, I discuss all of this with my clients. OKC as a whole is a market that can satisfy all tastes and preferences. Oh and tornado's don't worry about those, we get a bad rep around here for the weather!

Brendan Harrison · Answer

Hey Kinnari If you are still interested in OKC let me know. I would love to be assistance.

Kinnari Pandya · Answer

Thank you for taking time to address my question, greatly appreciate it.

Joseph Chiofalo · Answer

Hi Kinnari, Oklahoma City is ranked one of the best cities for investors to buy due to factors such as a strong economy and affordable prices. More of our investor buyers have expanded their portfolio to OKC. The housing market in OKC is poised for continued growth and stability.

AJ Wong · Answer

I've heard good things about Oklahoma, but it is very far from CA and I personally wouldn't bet on very speculative developments across the country. I remember the early 2000's and there are a lot of 'pre construction' projects that never came to fruition..not suggesting not to invest there just dive deeper into fundamentals. Check in with @Joseph Chiofalo for Pro Forma support and analysis he can help plug in loan terms with investor friendly financing.