All Forum Posts by: Kiera Underwood

@Chris Hanisco

My best advice would be that as soon as you’re approved make the offer! You can analyze and back out during the inspection period but you can’t do anything if someone snags it first!

Also, I’d scope the main line during inspections if there are any trees around. I learned this one the hard way in a personal investment. Major repairs shouldn’t generally cost more than 5k and a good warranty will cover most if you choose that route, but a main line collapse might not be covered and can get really expensive. That $300 could provide a lot of peace of mind!

Hello Vivian! 

I've seen consistent 1% rent to value ratio opportunities with over 8% cap rates in Oklahoma City. I prefer it over other markets because it's just so stable. There's not much exciting appreciation, but there aren't big dips either. Feels good to me to invest with that peace of mind. 

I agree with others above that you've got to take taxes, insurance, and HOA into consideration. OKC's insurance I estimate at 1% and I estimate their taxes at 1% as well. There aren't HOA fees on C class properties where you'll get the 8%+ rates of return.

First I'd get lending in place. If you're wanting to get qualified with a national lender, I really like Aaron Chapman with SNMC. If you're doing local lending, just make sure your compare against a few people, so you can make sure you're getting a good rate. 

I'd then work on your criteria. For my last investment, I wanted a multifamily unit that had no initial repair costs and over an 8% cap rate. I successfully invested with that simple of criteria. 

As long as your rents are close to 1% of the value of the home when you move out. And while you're living there as long as the difference between what your tenants pay and what your mortgage is, isn't more than you'd pay for a SFH mortgage or what you'd pay for rent for a similar property, why not build equity and plan on making money when you move out!

1. Get prequalified - so you're able to make an offer. 

2. Define your criteria.

3. Make an offer on anything that meets that criteria. 

Don't be afraid to make an offer. Act quickly on anything that meets your criteria and then do deeper analysis during your inspection period. That way someone else can't snag your good deal while you're evaluating. You can always back out during your inspection period, so do be afraid to get it locked up! 

I'd suggest working with an agent that specializes in investments so that you have a go-to person to answer questions along the way. 

Hey Adam! 

I think you had a good hunch with capitol hill as far as appreciation. You'd be in for the long run and would be taking a lot of risks, so I agree with you that for a first investment, I wouldn't. Honestly, I wouldn't suggest the BRRR method in OKC for a first deal either. It's just a riskier route for a first-time investment. Generally, I don't suggest the BRRR method here right now anyway, just because our market isn't that distressed, but that's a whole different can of worms.

I suggest starting a property that's already cash flowing. That way you can have normal inspections and request the seller address any issues, which keeps more cash in your pocket! With a tenant already in place, you can have peace of mind as far as what you'll get for rent and what your returns will look like before you invest anything at all. 

I see the very best rates of return in our C class areas, especially Midwest and Del City. But, if you're wanting to do something a/b class you can get something that'll cash flow just a little less if you look north of I44 and west of I 235.