All Forum Posts by: Tyler Flagg

Awesome info @Luke W.

I'd never heard the term TIF...but I did some Googling and figured it out. Lots of great info out there on the OKC Economic Development website about the NE 23 Corridor Plan. Good news for the area. 

Hey @Greg Horn I'd love to know what you find out as well. I thought about the same thing based on how much intimate neighborhood knowledge those guys and gals have. My concern would be the fact that they are government employees and I wouldn't be surprised if there is some sort of privacy act issue at hand there. I'd love if a lawyer might be able to chime in and provide their 2 cents. Great question.

Hey everyone,

Figured I'd take advantage of these nice new regional sub-forums and pose a few question to the Oklahoma City folks. 

1) Where do own property? 

Mine are all in the Inner North West, specifically Classen-Ten-Penn near the Plaza District. 

2) Whats the next hot district?

I've seen some chatter about the Inner North East starting to really show signs of improvement. Do you think it'll be the next Midtown or Paseo?

Looking forward to hearing from y'all!

Tyler

Thank you very much @Account Closed I'm happy to know that there may be some wiggle room. I'll be contacting the previous owner as well as the appliance company in order to see what I can work out. Thanks!

Hello experienced BP'ers,

When you purchase a property, is it possible to transfer the warranty for appliances/HVAC/security systems etc. over to your name? 

I just recently found out that the air conditioning condenser unit may need to be replaced at one of the properties I bought a few months ago. Unfortunately, I never thought to ask the seller about any warranties at the time...which was probably pretty dumb on my part. 

Any advice for future purchases? Should it be something that I include in the contract?

Thanks for the help!

@Sandy Salazar here are my thoughts on your valuation question. Like you mentioned, the issue is how to valuate a commercial property that has no income right? And there is no way you're going to buy a property based on what the sellers could be getting.

Because this property is technically losing money, it doesn't a Net Operating Income. As a matter of fact, it has a Net Operating Loss. Which makes the whole cap rate valuation a little weird. Because you cant expect the seller to pay you to take the property off their hands right? haha. (i wish)

I think your best bet is to treat it like a value-add flip. Figure out exactly what you could get in 1, 2, or 3 years (whatever your exit strategy is) from now if you raised rents to market, managed better, and brought down unnecessary expenses etc. Be very conservative in these assumptions. After that, subtract your expected renovation costs. Finally, discount that final price X% based on how much your time is worth. For example.

Final value in a year - $300k

Renovation costs - $50k

Personal discount - 30%

Offer - $175k

There have been a few forum posts about this topic, but in general, it seems like this is the consensus among experienced investors. 

Best of luck Sandy!

@Christian Garcia I use property management myself, but thats only because I live 500 miles away from the properties that I own haha. If I lived near my houses, however, it would be a different matter.

Honestly, as someone who has worked as a leasing agent at an apartment complex, you're already on the right track. Before you make the decision though, read "Landlording on Autopilot" by Mike Butler. It's an awesome book that will help you develop the necessary systems to be the best property manager you can be. Best of luck!

Awesome! Thanks @Nate Garrett. I appreciate the local info. 

@Evan Manship thanks for starting this post. This has given me a lot to think about. I appreciate it!

@Mark Ainley I never really considered how much goes into that process. I have three properties in Oklahoma County, OK that I've owned for less than a year, so I haven't had to go through this process yet. If you don't mind, what kind of information do you typically put together when you present your proposal to the assessor? Thanks for your help!

When I started voluntarily waking up at 4:45am in order to read about real estate on BP for a few hours before going in to work. haha.