Oklahoma City market and oil prices

[Ryan Ogden]

Hi everyone,

The oil and gas industry is a huge driver of our state economy and with $50/barrel, oil companies around here are making cuts and laying people off. This will be my first rehab and I already have all my financing in order but just wanted to see what you all thought about the current market situation?

Do you think 2015 will be a good time to start rehabbing and flipping houses in the OKC market?

[Tyler Weinrich]

I echo what @Zach Sikes said. Just make sure you have plenty of room in the deals you do and get your After Repair Value down solid. Make sure you have a backup price or even multiple ones. What if for some unforeseen, oil-related reason real estate prices dropped 10%? Would you break even? Lose money? Not saying this can or will happen, just using it as a hypothetical. The point is, think through the best, good, bad, and worst scenarios and see where you would end up. If you don't like the risk, then maybe it isn't worth it. I'd say it probably is though (my opinion). 

Also, you can't stress location enough as was stated. It's a good way to hedge against a falling market at least on some level. 

Lastly, 2015 should still be a good time to rehab properties. If the people panic because of oil prices and cry "SELL SELL SELL", then home prices drop as the market floods. While you may not make the most out of current rehabs with declining prices, the market would be headed straight towards where you want it - a time when others are running away and prices are low being primed for a rebound. Make sure to stay on top of the market by asking on here or talking with a Realtor (or two) every now and then. Zach is pretty on top of things as you can see. I have my license and can help answer some questions as well. 

Disclaimer - All opinions of course. Also want to say I'm not as experienced as Zach or some of the others on here.