Bricktown Townhome--Oklahoma City OK

[Nicholas Utesch]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $381,000
Cash invested: $381,000

Townhome located at The Hill in Bricktown, Oklahoma City's entertainment district. Approx 1,850 sq. feet, 2 bedroom, 2.5 bath, 2 car garage.

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

It originally was a unit I purchased to occupy as my primary residence. I ended up wanting a larger unit in the same complex so I retained this home and converted it to a rental property

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

Purchased from developer

How did you finance this deal?

Originally financed with a conventional mortgage

What was the outcome?

It has been consistently occupied. Not the greatest returns in the world (Approx $3,000 per month rent on a $381k purchase price and HOA dues / taxes are high (approx $1,000 per month for HOA dues / taxes) but I have picked up some decent appreciation--presently worth approx $525k

Lessons learned? Challenges?

The tenant quality has been great and I've consistently had good paying tenants that tend to stay long periods in that monthly rent price range. I'll likely hold for many years due to it being little to no maintance (HOA maintains all of exterior) but the cash on cash return isn't great due to the high fixed costs (HOA dues, property tax).