Achieving The 2% Rule in Tulsa Oklahoma

[Sam Sendgraff]

Hi guys,

I'm struggling with the 2% rule.. I know it is just a rule of thumb, but I want to achieve it if possible. Tulsa is a pretty competitive Buy and Hold market. I just don't know anyone achieving those kind of numbers here except for in North Tulsa which is a C-D/management intensive area. I am achieving 1.4-1.5% in my area. I have around $55-60K in each of my properties (all 3/1/1s) and believe they would sell for $65-85K on the MLS. I would like to hear how others are doing in Tulsa and the surrounding areas.

[Chris Simmons]

I am also in Tulsa and must admit that i don't really worry about that rule or lots of others. Each market is so unique and relatively fluid, just use them for the guidelines they are. I only have three 3/1/1 rentals and consider myself successful if i have no more that 75% of ARV invested in the by the time they rent. I am finishing up number 3 now and will put out the sign tonight advertising it for $750/month and will likely have $52,000 in it. I will let it season, do a cash out refi on the secondary market with a 30 year fixed mortgage around 5% and recoup almost all the cash I have invested in this one and move on down the road. It more than cash-flows but obviously does not get close to 2%. In this market, short of some deal of the year scenario, if you want to meet the 2% rule....then you need to go invest in areas that I won't.