Oklahoma City offers real estate investment opportunity in evry area, and every price range. Unlike many overheated areas, Oklahoma was not subject to a huge upswing in pricing beginning in 2001, and was never overstaurated in investment property driving rental prices down. In 2004 I started to get numerous investors doing 1031 tax deferred exchanges out of the Phoenix area as well as Nevada. These savvy investors knew that these markets were played out and they were looking for a safe haven. Oklahoma City has the place they began to buy in. From 2005 through 2008, I closed over 500 investment properties from out of state and out of country investors. Over 95% still own their properties, and they still have one big factor in common, cash flow.
During the bubble years too many "investment gurus" were touting treat your home like an ATM, borrow against, buy all you can, and the sky is the limit for appreciation, but like icarus that flew too close to the sun, their wings caught on fire and they crashed to the ground losing everything. My Oklahoma real estate investment buyers were conservative, long term investors. They know that with positive cash flow not only was the renter paying off the mortgage, they were banking money earning extra interest. That market exist today. Oklahoma City has the third lowest unemployment in the U.S for cities over one million population, and is considered one of the best job market in the country for young people. In the next seven years over $2 Trillion is being invested in our downtown area alone. If stablity is what you are after, this is the place. So let's do an overview of what is available that we recommend.
Tinker Air Force Base area. Tinker is east of downtown five minutes away, and is headed toward 45,000 employees. Midwest City where Tinker is we are bullish on. In the last few months we have closed propertoes we have had totally renovated, under $60,000 and renting for $700 a month. These properties maintain a close to 100% occupancy rate, are typically all brick construction built after 1950. This is a great investment for a new investor.
Short Sales. Oklahoma City only had a 4% distressed property percentage of all homes sold in 2009. We expect that number to rise, but not significantly. This means that a short sale is usually a really great investment. One example was a home that sold at $115,000, was built in 2004, and rented for $1250 a month, and had $40,000 of true equity at the start. We are one of the largest listors of short sales so we can let you know about them before they hit the market.
The Suburbs. Like many cities in this part of the country, the suburbs have the best tax base which means the schools are well funded. Added to that is one of the best road systems in the country. The average drive time to work in Oklahoma City is 20 miles in 17 minutes. Most of our suburban property we sell is newer, and the renter is typically white collar, and the prices for rent go from $1200 to $2000 a month.
Multi-Family. Plenty of opportunity here, not only with duplex and fourplex properties, but many apartments are available at distressed prices. Many Californians had a penchant for complexes, and the reverse sticker shock often enticed them to pay more than the property was worth. This is an area where good values are coming in 2010.
In futrue post, i want to educate you about choosing a property manager, the coming availability of owner carry and the red flags to look for, financing issues, new construction, and last but not least, having an exit strategy. The Greater Oklahoma City area is still one of the best places for long term investing in the country. We can provide you a trunkey approach toward building a sound financial future in residnetial investment real estate. You can call me anytime at 405-590-2135, or email me at joe@joepryor.com.
Comments (3)Subscribe to CommentsComment