Real Estate Investor · Omaha, NE · Member since 2015 · 31 posts · 4 votes
Hello,
I'm looking for some advice on the trends in the Omaha NE market. I've heard that that development and growth is occurring along western side of Omaha. I'm interested in purchasing a long term buy and hold rental in the Millard, Elkhorn area of the city as this appears to be relatively newer properties, middle income families, and good school districts. Am I fairly close? That's just what I'm seeing in my research, however I'm not from Omaha and I might be off. I've seen some properties on the SW corner go for around $134,000 (3bd/2bath), in a good school district and rent for close to %1.
Does anyone have any insight into what kind of trends you are seeing in the rental market?
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
10y
There is a ton of redevelopment money going into midtown/Aksarben area. That's where I'm focused on right now. New commercial and multifamily developments going in up and down the Leavenworth corridor. Some smarter developers than me are zeroing in there, might as well follow suit.
Real Estate Agent · Wentzville, MO · Member since 2014 · 12 posts · 3 votes
10y
Hello Nate,
Your analysis is fairly solid. There are many subdivisions in the Millard school district that fit your description... homes built around 2000 and later, tend to be starter homes and 3 bed/2 bath/2 car. Not as many in the Elkhorn schools. Home sale prices in this category have been strong due to high demand and low inventory. I doubt if you find the price you mention without going for older properties or ones in poorer condition. Rental rates are relatively strong with rates in the $1200 to $1400 depending on sq. footage and condition for homes that sell in the $140k to $160k range so you are not quite getting the 1%.
Real Estate Investor · Omaha, NE · Member since 2015 · 31 posts · 4 votes
10y
Yah that's about what I'm seeing. You are correct, it's hard to get a home in the $120-$140,000 range that has been built in the last 20 years in Elkhorn but the few I've seen for $134,000 have been in Millard and would seem to rent for around $1,200 so not quite 1%.
I know Elkhorn and Papillion are a desirable area to get into but has anyway noticed growth in any other areas of the Omaha area?
Bellevue, NE · Member since 2015 · 134 posts · 28 votes
10y
@Nate Rohlf@Richard Jump - Hey Nate, hey Rich! nice to see you again. You two are spot on as far as I can tell. Geographically the urban areas can't expand to the east at all and due to the violence in North O there will probably be little expansion for the time being. South isn't a bad option, but West is where everyone is going, and where most of the new building permits have been going as well.
Finding your price-point in Elkhorn and Papillion may be difficult. There are a LOT of people trying to get in to these areas, and they are paying for it.
Real Estate Investor · Omaha, NE · Member since 2015 · 31 posts · 4 votes
10y
@Matthew Swisshelm---Yes, that's very helpful. I couldn't handle North Omaha. I'm realistic but hopeful that I can find something with a decent cash flow.
Bellevue, NE · Member since 2015 · 134 posts · 28 votes
10y
Keep looking and you will find something. Watch the MLS, search Craigslist, and call any wholesalers you see advertising in the area. These are where I'd start.
Investor · Papillion, NE · Member since 2014 · 197 posts · 74 votes
10y
I bought a 4 Bed, 2 bathe house in lavista for 115k and I'm renting it out for 1150, so right at the 1% mark. Next year, I'll tile the showers and have no doubts that I can get 1200-1250 for rent. The deals are out there, but you have to have a good agent and patience. Good luck!
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
10y
I like the Papillion area. The deals are there but houses don't last more that 2 days on the market. I watched my neighbor sell his 4br home in 24hrs with a full price offer. Granted it wasn't an investment property.
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
10y
There is a ton of redevelopment money going into midtown/Aksarben area. That's where I'm focused on right now. New commercial and multifamily developments going in up and down the Leavenworth corridor. Some smarter developers than me are zeroing in there, might as well follow suit.
@Owen Dashner I also really like the Aksarben/midtown/blackstone area and the current and future growth in those spots. However, there are many differences to consider if looking for a buy and hold in these areas as opposed to W or SW Omaha. First, the homes are much older which will require more specialized knowledge and skill when inspecting, analyzing, and repairing the homes. Also, you will be attracting a different kind of tenant (younger singles, couples with 0-1 kid, students, etc). This will likely lead to higher turnover and vacancy rates and can make managing the properties a little more expensive and time consuming.
With that said, if you do your research it can definitely work and there may be more opportunities to find a better deal in this area as well.
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
10y
Jake, I already own 11 units in midtown/Aksarben, so I am familiar with the demographics there. The housing stock gets newer the further away from downtown you get, obviously since the river prevents growth east. I tend to buy stuff in the post-war era (50's, 60's), which are not all that different in construction. For multifamily, I don't like conversions, and tend to only buy "built for purpose" apartment buildings.
The Midtown and Dundee areas are actually where I am looking to start investing in Omaha. While the suburban areas are nice, I really want to be in the trendy more urban areas. These areas I believe will have the absolute best rental and appreciation growth long term.
I also agree with you in terms of conversions. I am not a fan of the single family that was turned into a multi. I have mainly been looking at duplexes with side by side units. Older properties don't bother me, and I prefer the architectural style of pre-1950's properties.
I have seen a lot of what I am looking to buy, but not a lot of it is for sale at the moment.
I know this is quite long since this was discussed. I am looking to invest in Omaha for rental. Can you please suggest which location is best and the current rental demand. I am looking at price range of about 300,000 or lesser.
My husband and I are new to this site and investing in Omaha market! 300k is above our price range but we live in Bennington NE right outside of Omaha great schools and I am always seeing families looking for rental homes just don’t have enough here so Bennington is Elkhorn would be a great place to buy and hold!
Thanks Dawn for your input. Do you know how much is single family homes renting in Bennigton, NE and what you think is the fair purchase price in current market?
Rental Property Investor · Omaha, NE · Member since 2019 · 7 posts · 4 votes
6y
Nakul, Rentometer is a great tool for checking rents. BiggerPockets offers a discount code (I think). In southeast Bennington, you can get $1500+ for a 3 bed/2 bath home. Rents are strong throughout Bennington, but prices are higher with the great desirability.
Eric,Thanks for your feedback. Yes so I am seeing prices at 250K range in both Elkhorn & Bennington. This is not the 1% rule for investment properties which rents at 1500K and I am new to real estate investments. What do you suggest? Is it still worth buying for investment thinking the price will go up? Or I should look for some other neighborhoods? Probably look at some other city if I am late to catch Omaha ship.
Investor · Omaha, NE · Member since 2019 · 130 posts · 139 votes
6y
@Nakul Ravi Hello Nakul, Bennington and Elkhorn are great up and coming neighborhoods with a lot of newly constructed homes coming up. I would suggest looking at Millard which is an area in Omaha that also has a desirable school system and houses that are around the $150k range that will rent for $1500. Start searching on the major sites such as Zillow and filter to see what is available for rent and then save those searches so you can track how much those homes are renting for and how long they are staying on market for. By consistently doing these searches and seeing what is for rent and what is for sale and checking the pictures for each of those properties you will start to get an idea of the market in Omaha. You can then also find an agent in the area that can help guide you. Just be clear in explaining to them what your objectives are. What market are you currently in?