Best Areas To Invest In Real Estate: Oklahoma
Hopefully, this guide to the best areas to invest in real estate will help you in your search. No matter where you choose, make sure to do your research before diving into any real estate investment.
If you’re eyeing up a rental property, but you’re worried about the work involved, we’d be happy to help. Get in touch with Oklahoma City Property Management today to discuss what we can do for you.
Closer Look At The Real Data Tells A Different Story
As you can see below, one-fifth of the jobs in the Oklahoma City metro area are government jobs. The four top employers in the area include the State of Oklahoma, Tinker Air Force Base, The University of Oklahoma, and the Federal Aviation Administration. All four of these are part of the government sector.
The pie graph below shows an economy that is well balanced, without over-dependence on one sector or another.
Non-farm payroll jobs in the Oklahoma City metro area by sector. Based on a 12-month average through March 2016. Source: Comprehensive Housing Market Analysis Oklahoma City, Oklahoma, US Department of Housing and Urban Development, data from US Bureau of Labor Statistics.
Oklahoma City Housing Prices & Forecast 2021
According to the national property broker, Redfin, the Oklahoma City housing market is very competitive.
- Homes in Oklahoma City receive 4 offers on average and sell in around 5 days.
- The median sale price of a home in Oklahoma City was $225K last month, up 4.7% since last year.
- The average sale price per square foot in Oklahoma City is $129, up 11.2% since last year.
- The average homes sell for about 1% above the list price and go pending in around 5 days.
- Hot Homes can sell for about 4% above the list price and go pending in around 2 days.
Realtor.com’s August 2021 data shows that Oklahoma City is aseller’s real estate market, which means that more people are looking to buy than there are homes available. The sale-to-List Price Ratio was 100%, which means homes in Oklahoma City sold for approximately the asking price on average in August. The median list price of homes in Oklahoma City, OK was $235K, flat year-over-year. The median listing price per square foot was $131. The median sale price was $221.1K.
The following real estate statistics were collected by MLSOK, Inc., for the time frame August 1 through August 31, 2021. While information is deemed reliable it is not guaranteed. Looking at these trends, it’s a seller’s market in the Oklahoma City Metro Area.
HOUISNG SALES: Pending Sales increased 8.1 percent for Single Family homes and 37.9 percent for Townhouse-Condo homes. Closed sales decreased 1.4 percent for all properties.
|Key Housing Metrics|
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Real Estate Investing Accelerator Program
Get all the training and support you need to acquire your first or next investment property.
Real Estate is a powerful wealth driver. It is secure, trusted, and the easiest of all assets to leverage other peoples money.
In April 2022, we are launching another session of our 3-month Real Estate Investing Accelerator program to help hard-working self-starters build net worth and earn passive income.
Oklahoma City Ok Investment Property Overview
Property Not Listed For Sale. According to the public records in Oklahoma County as of 05/28/2022, 1738 N MERIDIAN AVE, OKLAHOMA CITY, OK does not show signs of foreclosure or long term vacancy.
Purchased by LEGACY INVESTMENT HOLDINGS LLC on April 29th 2022 for $124,632. This property in the 73107 zip code was built in 1951 and is 962 square feet, has 2 bedrooms, 1 baths, and the lot size is 0.24 acres. The last assessment stated this property is in Good condition. This property is in the STEVE PENNINGTON 9TH Neighborhood.
Investment property in OKLAHOMA CITY, OK located at 1738 N MERIDIAN AVE. This property was purchased by LEGACY INVESTMENT HOLDINGS LLC for $85,000. As of 05/28/2022 the estimated market value is $124,632.
This property in the 73107 zip code was built in 1951 and is 962 square feet, has 2 bedrooms, 1 baths, and the lot size is 0.24 acres. The last assessment stated this property is in Fair condition.This property is in the STEVE PENNINGTON 9TH Neighborhood.
Find investment properties for sale in Oklahoma County
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Historic Price Changes & Housing Affordability
Reviewing the historic price change of housing and the affordability index are two of the many tools rental property investors in Oklahoma City use to forecast future investment performance.
Each month the Freddie Mac Home Price Index report reveals the change in home prices for every major metropolitan area in the U.S. According to the most recent FMHPI for the Oklahoma City MSA:
- 5-year change in home prices: 41.4%
- One-year change in home prices: 15.3%
- Monthly change in home prices: 1.2%
Rental property investors can find housing affordability rankings and short-term changes of home prices in Oklahoma City from Kiplinger, one of the leading publishers of business and personal finance information in the U.S. According to the most recent report:
- Since the last real estate cycle market peak in May 2006, home prices in Oklahoma City have increased by 34.9%.
- Since the last real estate cycle market bottom in March 2012, home prices in Oklahoma City have increased by 35.6%.
- Oklahoma City has an affordability index of 2 out of 10, meaning the metro area is one of the most affordable places to own a home in the U.S.
Okay How Do I Move Forward And Start Investing In My 401k In Real Estate
Before you can invest in real estate, youll need to move it to a self-directed custodian that allows you to hold real estate . This can be done pretty quickly and most custodians will help you make the transfer with just a bit of paperwork.
If you want some help, ideas, or even an introduction to a self-directed 401k custodian, we can help. Give us a call at 689-7639 or fill out our form and wed love to help you make this smart move to self directed 401k real estate investing in Oklahoma City, OK.
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Housing Stock Growth Is Slow
Oklahoma City is issuing building permits for single-family housing slowly. The new multi-family housing stock is slow to nonexistent. The Core to Shore redevelopment of downtown Oklahoma City will bring new commercial buildings to accompany the new convention center. However, this urban redevelopment plan does not include condo towers and apartment buildings that would lower the demand for rental units in the surrounding area.
Homebuilders started more houses in the first half of this year than last, despite the coronavirus pandemic and accompanying business shutdowns. With a shortage of housing inventory, mostly at entry-level price ranges, and persistent, historically low mortgage interest rates, builders roared into 2020 with 491 starts in January an increase of 63.1% over January 2019 then a 28.5% year-over-year increase in February.
The 2,674 homes permitted through June was an increase of 6.5% compared with the first six months of 2019, according to Norman-based Dharma Inc.’s Builder Report, which tracks home construction in Oklahoma City, unincorporated Oklahoma County, Bethany, Blanchard, Choctaw, Edmond, Midwest City, Moore, Mustang, Newcastle, Noble, Norman, Shawnee and Yukon.
Optimism In Market Diversity
On the whole, the city has a fairly diverse economy with its strengths in the energy sector, information technology, healthcare, government services, and administration. Building that diversity is key to reducing market risk. If there is a downturn in one sector, the other industries are able to support and maintain it. The efforts that began at the turn of the century to diversify Oklahoma Citys economy can be seen in their economic output growth. In between 2001 and 2005, the metropolitan area saw their output grow by 33 percent and has been on the rise ever since: $43.1 billion in 2005, $61.1 billion in 2009, and $73.8 billion in 2016.
What also brings optimism to this market is looking at their unemployment rates. With an unemployment rate tracking beneath the national average , Oklahoma City has positioned itself as a dark horse market for both business and real estate endeavors.
This economic health combined with affordability has created an ideal environment for real estate investing. With demand growing for rentals by several thousand, there is room for growth in profit margins and investor involvement in the market.
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Oklahoma City Metro Population
As of 2015, the population of the Oklahoma City metro area was 1.4 million. The population of Oklahoma City was 643,648 as of 2017. The population of Oklahoma City grew by 11,274 between the middle of 2015 and the middle of 2016 .
If you want details about Factors Affecting Real Estate Market, check out this article where you can find how Demographics affect the Oklahoma city real estate market.
So You Wanna Get Started Investing In Oklahoma City And Youre Checking Things Out Eh
Good for you. Always do your homework and you wont get schooled.
Heres some great tools that weve found and we use from time to time and great real estate investing resources in Oklahoma City for investors here locally to tap into for quick research on your investment deals.
The best thing is most of these sites below are completely free!
Heres a few sites you should get to know:
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Consider The Benefits Of Professional Property Management Services
Managing a property requires a lot of time and dedication. Juggling multiple tasks can be exhausting and stressful especially if you have more than one unit to think about.
When youre new to the rental industry, you might not be so familiar with the duties of a landlord. Your Norman rental property must remain in a habitable condition, this means maintaining it well and keeping up with the repairs. You also have to deal with tenant issues and be alert when urgent situations spring up in your rental unit.
A self-managing landlord does not operate on fixed hours. Instead, youre expected to always be available. You must also have good problem-solving skills to address whatever comes up in the course of managing the rental.
If your time is tight and in short supply, you can hire a proven and property management company to look out for your rental. The right one will always have your best interest at heart!
Day Two Itinerary Apartment Complexes
We met for lunch at Fuzzys tacos in Chisholm Creek area, a brand new mixed use development with restaurants, shopping and entertainment. The whole area is being developed and its likely to have the local housing market appreciate from the growth.From there we went and visited an off market 34 unit apartment complex nearby.
We were able to walk through two of the 9 units that were vacant, and they were in decent shape, just needed new flooring, paint and a deep clean. The rest of the building had some exterior rot and other items that needed to be addressed, but overall there is potential with this one.
I am currently evaluating this property to see if it makes sense to make an offer.
Another property we drove by was a 12 unit not to far away.
This one is in great shape and didnt require any work. The numbers are great on this one, coming in above an 8 cap.
After the 12 unit we did a parking lot drive through of a 40 unit, though we had limited information and it was raining pretty hard so we didnt get photos on that one.
Last but not least, we went to a 72 unit complex which included 154 storage units behind.
The 72 unit property was by far my favorite, and we went back to the owner with a request for the T-12 along with a current rent roll.
Im not sure that there is a value add play with this one, but if the cash flow is good enough it still might make sense.
The HOA dues are $3,500 per month, and homes range from $700k $3 Million.
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Real Estate Investing Trip To Oklahoma City
This past weekend Deena Iverson and had our fourth investing trip together, and this time we visited Oklahoma City.
Deena and I took our first investing trip to Detroit in 2013 , and then we did Memphis, TN in 2014, and Indianapolis in February of 2016.
While we both are very comfortable buying out of state without first having visited the area, it sure is nice to be able to meet who youre working with and get an idea of what neighborhoods you might be buying in.
A few months ago Oklahoma City was not even on my radar. I literally thought OKC was a small city with no economy outside of cattle and oil. I was wrong.
After doing some initial research, I learned that Oklahoma City was ranked number 1 for US cities with high paying jobs & low cost of living, it is now the 28th largest city in the US, and its had a massive population growth of over 8% from 2000 to 2010.
Being a great real estate investor means you really need to start networking with more people, and I was connected with our OKC team through a local seattle friend who insisted I reach out.
Long story short, I spoke with Alyssa & Curtis over the phone and knew these two had it together. They not only knew how to find deals in the best areas, but they understood what is most important when it comes to investing cash flow and ROI!
After a few months of looking at their deals, and referring them out to other clients who were looking for good deals, Deena and I finally decided we needed to pay a visit to OKC.
In A Nutshell: Real Estate Investing Tips In Norman
When investing in rental property in Norman, its vital to check your budget and focus on high-rent neighborhoods. Pick the one that shows signs of progress and do the calculations on projected income. Finally, evaluate your landlord skills, resources, and available time.
If youre ever feeling overwhelmed, you can always hire a property management company like Draper Realty to manage your rental investment for you.
Get your free rental pricing analysis today.
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Day One Itinerary Meet Our Agents Get A Lay Of The Land View Completed Projects & Projects Being Renovated
After getting a slow start for the day, we drove to meet with our local team, two agents who partnered together to form their unique business model.
Both are licensed, yet 95% of what they sell is off market. Working with agents who have the ability to find off market properties is a huge benefit to investors, and they are really hard to find!
A huge benefit to working with licensed agents as opposed to turn key companies and wholesalers who are not licensed is that a licensed agent has a fiduciary duty to protect your interests, whereas a non-licensed person who is selling you property can literally tell you anything and get away with it!
Im not saying that all wholesalers and turn key companies are bad, though I do feel that its important to bring up this very important distinction.
Fun fact about this area, the owner of Chesapeake Energy helped develop this area so that he could recruit talent from other cities. They talked Whole Foods & Trader Joes into moving in across the street from their corporate campus so that it was convenient for their employees.
After lunch we went to check out a turn key duplex that one of our investor clients purchased. It was an interesting project because they purchased and flipped four houses next to each other in the same cul-de-sac, and theyre working on getting two across the street!
Tips To Consider Before Investing In Oklahoma City
When you have decided that you are ready to purchase a second property to use as an investment , you need to examine data on various regions and see what is the most financially sound move. If you are moving to Oklahoma City and want to purchase a home for investment, there are a few things to consider. Lets explore how to determine if our real estate market is the right on for you.
Does high rent translate into revenue?
High rental rates does not equal high revenue, because the real estate markets have to be stable and the costs associating with owning a particular property might be far more than the fair rental rate for the area. Calculating gross yield as the cost of the property divided by the annual rental income, a property in New York County only returns 3%, while the figure is 4% for San Francisco County. This is far below the double digit figure most investors tend to aim for.
Where is your main residence?
While todays technology age makes it easy for transactions to be completed online and there might not be recurring reasons for you to be close to your rental property, some scenarios will make you wish it was a short drive away. Weigh the pros and cons and see what area is close that also isnt too expensive. If you arent going to be close, you probably want to work with a property management company who will answer the phone at any hour to fix any household problems that arise.
Are you trying to earn a living off of it?
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