All Forum Posts by: David Luetkemeyer

A was considering changing out window units on a six plex in Oklahoma last summer and the quote I received was about $2900 per unit for single zone.

Tony,

I have over 70 properties in rural OK (towns from 1000 to 5000+) and I can tell you from my experience the cash flow is awesome.    I can buy homes from 15k to 70k and rent them from $450 to $1000.

The biggest problem with investing in rural towns is the exit strategy.  I cant sell these homes in these small towns.  The only way I can sell them is to owner finance or rent to own. 

So consider that when investing in rural towns.  You may be stuck holding houses for a long time.  And that's OK as long as they are cash flowing.  But its definitely a great cash flow strategy.

I agree Jeff. Everything that I have in Oklahoma is above 1.5%. I have around 60 properties and all but about five of them are under $100,000 properties. Most of them are around $30-$40,000 properties that rent for around $600 a month.

And yes the damage is over $500 but that is their auto insurance deductible. And they have asked me to cover that. I have told them that it was an act of God and that is what their insurance for their automobile is for. They asked about renters insurance and were told that it would not cover their automobile.

I don't know why I would turn over to insurance. My deductible is over 500 anyway. And anytime you turn something over to insurance it's considered a claim whether they pay anything or not and they will raise my rates.

Okay I need some advice. We have a small apartment unit. During a windstorm a piece of siding blew off and damaged one of the tenants cars. The tenant is asking us to pay the $500 deposit. I have never had in my lease anything about parking at your own risk, or any signs in the parking area. Is this something I am responsible for? Or is this considered an act of God and the tenant has on his own? Any advice would be appreciated.

Tom, The way I understand it the investor is asking you to put up 50% of the money and all of the work. I am in investor and would love for somebody to do this for me. If I could find somebody to do all of the work and put up half the money I would take that deal all day. My question is if you have 50% down why wouldn't you get conventional financing? They normally only require 20% down and you get to keep 100% of the profits. Just my thoughts.

I just purchased 18 homes in Blackwell.  That is about 20 miles from Ponca.  I am finding it a difficult market to get quality renters. 

Ponca may be better due to the refinery and the higher incomes from that.  However the oil industry is in a major downturn currently (as I'm sure you are aware) and that entire area is feeling the pinch.

Seems kind of high for me. Even if you were to give $300,000. On a 20 year note your PI payment will be $1720 per month if you put 20% down ($60,000) Taxes and insurance will probably be another $700 per month. That would put you at $2400 per month (28800 per year)just to cover the note. With an NOI of $33,900 and a note of $28,800. that only leaves you around $5000 a year to do maintenance and pay any help. If you put $60,000 down and only get to keep three or $4000 a year that's a pretty bad investment. I do understand that you are building equity with your payment, however you can build equity in a good investment also.

Mark, Good luck finding an 8% cap rate in Stillwater. I'm not saying that they're not out there but everything I am finding in Stillwater now is around 5%. You will definitely need to find an off market deal. The commercial real estate in Stillwater is developing like crazy right now because of the student housing boom. I feel like it might be a tiny bubble in North Oklahoma. (Just my opinion) I can't make the numbers work at that rate so I am investing outside Stillwater.