2801 N Kentucky Ave -- Duplexes in the Oklahoma City Urban Core

[Nicholas Utesch]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $790,000
Cash invested: $790,000

New construction 6 unit property (3 duplexes--each unti 3 bedrooms, 3 bathrooms) next to Oklahoma City Unviersity, a prestigious liberal arts university in the Oklahoma City Metro Area. Approximate combined square footage for all 6 units is 7,600 sq. feet (approximately 1,250 sq. feet per unit).

What made you interested in investing in this type of deal?

This property presented a great cash on cash return. Each unit rents for $1,500 per month and I was able to acquire the property as a brand new construction for $790,000. Great price per foot and excellent cash on cash return / monthly income

How did you find this deal and how did you negotiate it?

Off Market deal--purchased from a developer that was building for his own portfolio that decided to sell.

How did you finance this deal?

Cash deal. Added a line of credit for 75% of the property value in case I ever needed to tap any equity.

How did you add value to the deal?

Purchased in a transational area of Oklahoma City that was just starting to get developed and gentrified. One of the first new construction projects in this area in 2018 and the neighborhood surrounding it has since experienced a tremendous amount of new construction, gut rennovations, etc.

What was the outcome?

A long term hold that generates excellent monthly income

Lessons learned? Challenges?

Don't be afraid to invest in an area that might be a little fringy but has a great location (this one has great proximity to a popular area (Uptown / 23rd) and has excellent appeal as it is right next to a prestigious local University so students enjoy having other housing alternatives.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agents Involved. The 75% Equity Line of Credit was originated thru Mandy Hansen at MidFirst Private Bank in OKC--she is an amazing banker for commercial / multi family.