Broken Bow 2024 - Still a good idea or beware?

[Sarah Vo]

Hi everyone! I've been analyzing dozens of markets for STR, and Broken Bow seems to be a good fit for my goals. My priorities are cash flow and tax benefits, and I'm looking at purchasing a 2/2 that fits up to 10 and is along a body of water. I was really interested in a 1/1 on top of a hill (had a bit of a view) but was several miles north of Hochatown, so was talked out of it by my realtor. The 2/2 should be a home run according to my realtor.

I looked at past Bigger Pockets posts and found threads mostly from 2023 or older. I wanted to see if folks had feedback on how the market is doing this year… looking at AirDna (obviously historical data) , it seems like my numbers will work out. However I have heard from my STR coach that a lot of investors in the Broken Bow market are struggling. And I know that the tourism infrastructure (restaurants , activities) has some catching up to do aside from the new casino that is opening up. I'd love to assume a happy path scenario, but I know I need to do my due diligence and not just go off of one or two people's feedback.

What’s the real story? If you’re an investor in Broken Bow, I’d really appreciate your take! 

[Jeff Langley]

I've never been a believer in Broken Bow. I struggle to figure out the draw for that market. A property on water should help, otherwise all the properties look the same and don't differentiate much. That market also doesn't have a Plan B, its STR or nothing.

[Sarah Vo]

Quote from @Jeff Langley:

I've never been a believer in Broken Bow. I struggle to figure out the draw for that market. A property on water should help, otherwise all the properties look the same and don't differentiate much. That market also doesn't have a Plan B, it's STR or nothing.

I totally agree, so many properties there are new and beautiful that there needs to be *something* to really stand out

You make a really good point re: no plan B, and in general I’ve seen the home values in that market depreciating (assuming because of the boom / growth in supply in the last couple years).

I might be wrong here but I assumed that a general trade off between vacation market and metro areas would generally be that strs in vacation markets don’t really have a plan B

I’m pretty split at the moment, but really appreciate your thoughts

[Garrett Brown]

Hey Sarah! Welcome to the forums. I have been hearing that Broken Bow is hard to turn a profit right now unless it's a screaming deal. It is a heavily visited area, but I believe it has become one of the more saturated markets this year. Arkansas has some gems with less competition that I would explore, and even a few other areas in Oklahoma are rising. Waco and Temple, Texas, are others gaining traction. 

[Matt Mertz]

Just wanted to chime in real quick because we considered investing in that area a few years ago.

Today I look at the existing cabins, and a lot of them look fantastic.  The bar is set high if you want to stand out in that market.

We live near Austin TX and considered going there a few times (family of 3).  But we never did because there doesn't seem like there's much to do in the area.

Good luck on your investing journey!

[Terry Hall]

I have visited Broken Bow multiple times. Someone mentioned water; there is a beautiful lake, 25000+ acres and river flowing from the lake. There is a lot to do, lake fishing, trout fishing in the river, kayaking, tubing the river in the summer, hiking, wineries, breweries, petting zoo, go carts; I could keep going... But that said; the infrastructure is not set up for so many people and there are new cabins everywhere! It is over saturated with Cabins prices typically $400+ sq ft.  If you bought before Covid you are probably good; but prices just do not make sense now. Look on realtor.com and how many houses are for sale for such a small area. 

[Sarah Kensinger]

Born and raised Oklahoman here, and I have never understood why that little corner of the state turned into such a popular market! It's way too hot for hiking in the summer, and ugly in the winter once all the green is gone. So that only leaves a very small window of tourist enjoyment in the early spring and of course fall. Like already mentioned there's not much to do....2 days exploring the area would cover everything. 

I have also heard the market is not doing well and know there's a number of STR properties for sale in the area. So, I would definitely proceed with caution.