All Forum Posts by: John Kunick

Chris, I go by the 1% rule and stick to 3 bed/2 bath in suburban areas with good school districts.

I have lots of properties in Tulsa suburbs and routinely get 1.0-1.2%.  All of mine are 3 BR, 2Bath ranging in price from $90k-$120k.

I have typically tried to stay away from anything below the $100k as I'm concerned about the quality of tenants.

David, sent you a request as like to hear more about what/where you are getting your properties.

First, best of luck! Second, like Curtis, I live in Tulsa and all of my properties are here and SFH. I have two ways of looking at it. I do the CoC return and look for 15%. I also evaluate based on the 1% rule: If I pay $110,000 for a house, I need to be able to rent it for $1,100/month. If I am able to do that, typically the return will be in 15-20% range.

Unlike Jeff, and not saying his approach is wrong but we are most likely in different stages of life and therefore have different strategies, but I don't do the BRRRR method. I built my portfolio and don't refi to get cash out to reinvest in others. My goal is to take the free cash flow and pay down debt so free cash flow goes up as I near retirement.

Good luck.  Buy and hold rentals can be great investments if you manage them correctly and buy right houses.  We love it!

BTW, and I admit this up front, I'm not considering appreciation and this is buy and hold.  But, I know a lot of CA and FL investors that lost everything when the housing market crashed.  That did not happen in OK.  The appreciation is more modest - as are the risks.

I am not trying to discourage any investors/investments. Only think you should look at any/every deal and evaluate vs. your goals. For long-term ROI investors, the OK market is just hard to beat because the cap rate is so low and the laws favor landlords.

BTW, two of them have since bought properties in Tulsa and are doing extremely well.

Robert, I own twelve SFH in Tulsa area. Could not imagine a better market. Friends of mine in CA were salivating when I told them the ROI and pro-landlord laws we have out here. Left you a colleague request with my cell # so you can call me. Be more than happy to share my experiences with you.

Jay, the lease is the key.  That is why I highly suggest having an iron clad lease and going over that lease in detail with any tenant before they sign.  We also then have a Move-in Letter that we provide to them the day of move-in that spells out the major points of the lease in common language.  We require them to sign the move-in letter.  Can't emphasize enough the importance of a strong lease.

Bob, was this property in question in OK or CO or elsewhere?  The laws in both states vary, but OK is a very landlord friendly state.  They must prove "negligence" which doesn't sound was the case.  

All of my leases include a clause about renter's insurance and in essence their consequences if they don't buy it.  In this case, it would seem renter's insurance would have covered their expenses.

Bottom line:  update your lease immediately.  And, when you sign a lease you need to specifically explain this portion and have them sign or initial that they understand it is voluntary but in their protective best interest to have renter's insurance.