All Forum Posts by: John Kunick

I totally agree with Jon Pitcher and have had a similar situation and did exactly what he suggested.  In essence, we agreed to make the current lease null and void and started a new lease which extended the terms.  It was a win/win.

Hi Dustin.  Call me.  I do a lot of investment properties in Tulsa and live here.  Have helped others as well. 

Hi Ryan, hope you are well..  I've never actually done one of these, but have had a couple of people, who were not current tenants, inquire about my willingness to do it.  Bottom line:  I am not willing to do it unless I've already had them renting from me for at least one year and know who I am dealing with.

Now that I've got a long history, I would be willing to do this, but only if the tenants were VERY good and demonstrated a desire to stay long-term and follow-through on all aspects of the agreement.  Basically, this would switch them from being a tenant to a potential owner - and change my role from landlord to short-term financier.

Like you, I've heard various ways of doing his.  But, I would insist on a 5% down payment, a $200 per month rent premium that would go towards their equity, a fixed time to pull trigger and they get their own financing and also that they are now responsible for all repairs up to a set limit.

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.