All Forum Posts by: Ben Scott

Hey Kyle, congrats on wanting to invest in our city! Anecdotally, many investors looking for cash flow opt to buy on the south side while investors looking for appreciation look on the north side. Then there are the communities by Tinker Air Force Base which attracts many high quality tenants. I'm a local agent and investor and would love to help answer any questions you have.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $165,000
Cash invested: $44,000

This duplex has a lot of history with me. My aunt and uncle have owned this property since the mid-1990s. I used to mow the yard in college with my brother. My uncle had two tenants that had stayed 25+ years. But I said, should they ever leave and you want to sell, please let me know first.

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

The Gatewood area is an up-and-coming neighborhood, just north of the gentrified Plaza District and south of Oklahoma City University.

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

I negotiated a seller finance with the owners, who happened to be my aunt and uncle. They have several rentals and are looking to divest as they become vacant. I've always had my eye on this duplex though given the location.

How did you finance this deal?

Seller finance. I put $10k down and financed the remaining $155k on a 15 year note at 5.75 percent. My mortgage is $1287 per month.

How did you add value to the deal?

I did a complete remodel. This place was riddled with roach poop and moldy carpets. We put in nice LVP flooring, repainted all 2400 square feet. Painted the kitchen cabinets a bold navy blue and upgraded the hardware. Added dishwashers and ovens in both units. New sinks and fixtures. Painted the exterior siding and added gutter guards.

What was the outcome?

I rented the one bed/one bath unit for $795/month. I rented the 3 bed/1.5 bath for $1200 a month. My expenses are about $1600 with mortgage, insurance, taxes and water. I believe the home will appraise if/when I refinance to a 30 year note to at least $250k

Lessons learned? Challenges?

Covid 19 was a challenge, simply for a supply issue. I couldn't find dishwashers or ovens in stock. Paint was another challenge. I chose a high quality Sherwin Williams interior paint. But the drywall, riddled with years of smoke and other odors, soaked up the paint like a sponge. In hindsight, I'd have used a lower quality paint as a base and then finished up with the top quality paint.

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

I'm a licensed agent in Oklahoma and was able to organize the contracts myself.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $165,000
Cash invested: $44,000

This duplex has a lot of history with me. My aunt and uncle have owned this property since the mid-1990s. I used to mow the yard in college with my brother. And every time I drove through the historic Gatewood neighborhood, I opined on this duplex's potential. My uncle had two tenants that had stayed 25+ years. But I said, should they ever leave and you want to sell, please let me know first.

We set up an owner finance agreement and I funded the rehab. Both tenants of the duplex were special needs and, suffice to say, the place was rough. Roaches and roach droppings were everywhere. But we added new floors, paint and did some major updates to drywall, electrical and plumbing. My biggest project to date. I plan to refinance this once I've owned it for 6 months and believe it will appraise close to $250k based on comps in the area.

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

The Gatewood area is an up-and-coming neighborhood, just north of the gentrified Plaza District and south of Oklahoma City University.

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

I negotiated a seller finance with the owners, who happened to be my aunt and uncle. They have several rentals and are looking to divest as they become vacant. I've always had my eye on this duplex though given the location.

How did you finance this deal?

Seller finance. I put $10k down and financed the remaining $155k on a 15 year note at 5.75 percent. My mortgage is $1287 per month.

How did you add value to the deal?

I did a complete remodel. This place was riddled with roach poop and moldy carpets. We put in nice LVP flooring, repainted all 2400 square feet. Painted the kitchen cabinets a bold navy blue and upgraded the hardware. Added dishwashers and ovens in both units. New sinks and fixtures. Painted the exterior siding and added gutter guards.

What was the outcome?

I rented the one bed/one bath unit for $795/month. I rented the 3 bed/1.5 bath for $1200 a month. My expenses are about $1600 with mortgage, insurance, taxes and water. I believe the home will appraise if/when I refinance to a 30 year note to at least $250k

Lessons learned? Challenges?

Covid 19 was a challenge, simply for a supply issue. I couldn't find dishwashers or ovens in stock. Paint was another challenge. I chose a high quality Sherwin Williams interior paint. But the drywall, riddled with years of smoke and other odors, soaked up the paint like a sponge. In hindsight, I'd have used a lower quality paint as a base and then finished up with the top quality paint.

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

I'm a licensed agent in Oklahoma and was able to organize the contracts myself.

I'm in Oklahoma City and have two duplexes. I pay for the water/sewer/trash on each because there is only one meter. Trying to decide who used more water than the other would be unneeded drama. I'd recommend estimating the costs of water/sewer/trash and building into the rent. 

Hey @Karis Reavis. I'm a local agent and an investor with a handful of doors spread out of OKC. I'd love to help you scout out a property in the OKC market when you're ready. Let me know if I can be of help!

I'd call 'old Edmond' anything by the University or from 2nd St south to 9th. Between Boulevard and Bryant. Homes in the Clegern area are going for crazy price per square foot the last 12 months. We're seeing more flips and new constructions thanks in large part to Clegern Elementary accepting more neighborhood kids. They used to be exclusively a charter school with no preference for local families.

Congrats and good luck on your search. One piece of advice is to tell your sphere of influence you're looking to purchase investment property. Those conversations with people you already know and trust can spur the best deals. 

Let me know if you'd like to see a few properties! Or I can refer to you to some local references (podcast, real estate meet ups, etc). 

I use Lindsay with Trevor Randall's Farmers Insurance agency in Edmond. I have several policies with her. They have a subprime option called Foremost, under the Farmer's banner, for when a rental unit is vacant or the home is not in ideal condition. 

If you're only home one month a year, have you thought about buying a SFH property and renting out as an Air BNB when you're traveling? I think there'd be a big market in Norman. There are companies that will take care of cleaning, stocking supplies, etc.

I'd echo was Kiera said. Working as an agent, we see a lack of inventory with an army buyers looking to take advantage of lower interest rates. On the investor side, I've seen activity from numerous out-of-state buyers (mostly California) snatching up high cash flow rentals in often dicey areas.