Out of state investor looking into OKC

Oklahoma Real Estate Q&A Discussion Forum
7yFollow

Out of state investor looking into OKC

Adam Egloff
Investor in Montrose, CO · Member since 2018 · 11 posts · 1 vote

Hello!

Brand new to the podcast and real estate investing as a whole. I am interested in small multi unit properties in the Oklahoma City area and was wondering if anyone had some insight into some of the neighborhoods there. I am aware of some of the ones north of Bricktown that are up and coming but are any of the communities south of the river looking good for future growth and revitalization? Any insight from a local would be much appreciated!

0Reply
15 views

Most Popular Reply

Rhett TullisBusiness Member
Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
7y

lots of potential in lots of areas really comes down to how patient/quickly you are looking for a change in the area.  some areas are hot and changing fast others may be 5 to 10 years from seeing a big change happen, some longer.

[email protected]405-283-6522
Integrity Oklahoma
WebsiteView Page
3Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Dylan B.
    Investor / Real Estate Agent · Oklahoma City, OK · Member since 2015 · 324 posts · 157 votes
    7y

    @Adam Egloff There are certain areas you want to stay away from south of i35/the river but that is the same to say for north of 35/the river.   I see more of a revitalization happening north than south near Bricktown. 

    1Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    7y

    lots of potential in lots of areas really comes down to how patient/quickly you are looking for a change in the area.  some areas are hot and changing fast others may be 5 to 10 years from seeing a big change happen, some longer.

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    3Reply
  • David Monroe
    Real Estate Consultant · Mobile, AL · Member since 2015 · 78 posts · 96 votes
    7y

    We underwrote a 192 unit there about 4 months ago and really like the Mustang area, Southwest part of OKC. We were told it has the best school district in the market and there was very little rental competition there. We had travel up to 5 miles to get rent comps.

    1Reply
  • Adam Egloff
    OP
    Investor in Montrose, CO · Member since 2018 · 11 posts · 1 vote
    7y

    Thanks for the input! Is the Bricktown area already to far inflated or are there still deals to be had? I've been reading about some revitalization projects across the river in the Capitol Hill neighborhood. Obviously it won't appreciate any time soon but ten years down the road perhaps? This would be my first deal so trying to get my feet wet relatively inexpensive. Also, does anyone have any realtors, management companies or appraisers they would recommend? I appreciate the feedback 

    0Reply
  • Victor S.
    WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    Adam, do you really want to start your journey in a less desirable area? I mean, you will certainly cash flow, but make sure you find a seasoned PM that is prepared to deal with the clientele that area would attract.

    Wheeler district is building brand new homes right by the Ferris wheel, but the $/sq. ft is outrageous (north of $200, iirc).

    3Reply
  • Charles Richardson
    Oklahoma City, OK · Member since 2018 · 4 posts · 4 votes
    7y

    @Adam Egloff the Bricktown area is undergoing a lot of change. We have people on the new Cox Convention Center and Omni Hotel going up. I have seen a lot of developing communities north towards Edmond. Chisolm Creek. That area. But towards the south I would say around SW 134th between I-44 and I-35 there is A LOT going on. Lots of retail stores going up. Schools are decent for Oklahoma. Closer to Moore too. I believe the closer you get to SE OKC you will want to step back a bit. That isn't the best area. But I wish you the best of luck and if you have any specific questions about an area feel free to ask. I run a construction staffing agency so I am pretty aware of any areas that are expanding, not much building goes on I don't know about. I hope 2019 is a great year for you!

    2Reply
  • Charles Richardson
    Oklahoma City, OK · Member since 2018 · 4 posts · 4 votes
    7y

    @David Monroe wow! 5 miles! That sounds about right though. My wife is a property manager for a 176 unit property in the SW OKC area and she had mentioned how far out they have to go when they canvas for rent rates on other properties.  

    1Reply
  • Marcy Leonard
    Real Estate Broker · Edmond, OK · Member since 2016 · 9 posts · 1 vote
    7y

    Hello Adam.  I'm an agent based in Edmond, OK.  I helped friends buy their first investment property this year, and am currently working on starting my own investment portfolio.  I became re-licensed after taking a break for family reasons, and just completed my first year as a full-time agent.  I'm with a Keller Williams brokerage.  I closed 16 transactions in 2018, and received excellent reviews from my clients.  I can provide testimonials upon request.  If I don't know the answer to something, I'll access multiple resources to find the answers.  If you are needing "boots on the ground" to do some legwork, get information, then write offers and process a transaction through closing, I'm happy to provide those services.  Best wishes on your future investments!

    0Reply
  • Cassi Justiz
    Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
    7y

    As far as small multiunit properties, I am going to assume you mean tri/quad plexes. In addition t to the areas mentioned above, you may also check out the area near OU medical center and east of I235. That area is starting to be revitalized but the prices aren't quite as inflated as some of the other areas. Just make sure you do your research and consult a property manager that is VERY familiar with that specific area, because the difference in a few blocks can change your rent and tenant prospects dramatically.  This is a generalization, but you will almost exclusively find those kinds of properties in the older areas of town. This area generally is referred to as the "urban core" so you can google that and get an idea of the areas that includes. You can also find small multifamily properties in the areas immediately surrounding that section of town (south of the river, immediately east or west of the highways. 

    0Reply
  • Orsain Larrahondo
    Member since 2018 · 3 posts · 0 votes
    7y

    @Adam Egloff I am also looking at trying to purchase a rental property in OKC. Planning a trip in about 3 weeks to check out the area and neighborhoods. I have been looking in Research Park, JFK figured with all the hospitals there should be a good number of renters. Will keep you posted after my visit. 

    Haven't found a PM or realtor but would love to connect with some that know the area well.

    0Reply
  • Adam Egloff
    OP
    Investor in Montrose, CO · Member since 2018 · 11 posts · 1 vote
    7y

    Thanks for all the input guys! I have since realized that starting in a "war zone" seems tempting due to the cash flow numbers but the more I research, the more it seems like a horrible idea. I am currently doing more research on the BRRRR strategy which sounds like a great way to do this. I'm thinking of looking for 2 beds/1 bath that have over 1,000 sq ft which could easily be turned into 3 bedrooms and going that route instead of the multifamily to start. Any contractor or property management company recommendations?

    0Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    7y

    Hey Adam! 

    I think you had a good hunch with capitol hill as far as appreciation. You'd be in for the long run and would be taking a lot of risks, so I agree with you that for a first investment, I wouldn't. Honestly, I wouldn't suggest the BRRR method in OKC for a first deal either. It's just a riskier route for a first-time investment. Generally, I don't suggest the BRRR method here right now anyway, just because our market isn't that distressed, but that's a whole different can of worms.

    I suggest starting a property that's already cash flowing. That way you can have normal inspections and request the seller address any issues, which keeps more cash in your pocket! With a tenant already in place, you can have peace of mind as far as what you'll get for rent and what your returns will look like before you invest anything at all. 

    I see the very best rates of return in our C class areas, especially Midwest and Del City. But, if you're wanting to do something a/b class you can get something that'll cash flow just a little less if you look north of I44 and west of I 235. 

    2Reply
  • Account Closed
    Denver, CO · Member since 2019 · 80 posts · 53 votes
    7y

    @Adam Egloff I'm a little late to respond, but if you're willing to go a bit more suburban, there are tons of small multi-unit properties around the UCO campus or the OC campus in Edmond (but moreso the UCO campus). I have several family friends who invest there because the majority of UCO students live off-campus! 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free