OKC Real Estate Investing (Oklahoma City, Norman: renters, mortgage, credit)

[Sonic]

I'm seeking to buy homes in OKC to rent out for cash flow.

Is anyone investing or buying properties in Oklahoma City? It seems like homes are very undervalued.

Good or bad idea? Any and all comments are welcomed.

[El Guapo]

In relation to the rest of the country the homes here are a very good deal and are undrvalued. There are a lot of out-of-state investers coming to this area to buy property. Where do you live?

[Peace_Maker]

I don't understand why people pay outrageous rent in OKC. I see houses for rent for $900+, when the mortgages can't be more than $600-$750. Why would anyone want to pay someone elses mortgage plus $300?

[Carolinemoveswhere?]

Hi there. We have three rental properties in Norman. While real estate can be a great investment in the OKC area, there are several things to consider. One, who will "manage" the property. We have been landlords with and without a property management company. We pay $65 a month for a $650 a month rental. That doesn't include any advertising that the property will need, but they don't charge any more than what the local paper charges. But, what gets you are the extra costs involved. There have been times that we have received over what our payment on the property is and there have been months that we had to pay for it ourselves, especially between renters, when no one is paying rent. We once had a rental not rent for 3 months. Yikes, that hurt. Realize that many people rent because they don't have to maintain the property much. Sink clogged? Call out the plumber! Interior door making a small "click" when shut? Call out the contractor! Dishwasher not cleaning the way they feel it should clean? Buy a new one! Pilot light need to be lit/blown out? Call the HVAC guy! Some people don't take basic care of a home when it isn't their own. Pride of ownership doesn't exist. The list goes on and on.....

People also rent because they can't clean up their credit. Or, save the money for a down payment. Or, they aren't going to live in an area long. (one of our renters is in graduate school at OU)

We feel that our rentals are a great investment. However, it is a long term investment. Once all expenses are considered (including making your federal income tax increase because rent is considered income), we really don't make more than a few hundred dollars a year. Truthfully. But, we are in our 30's, early 40's. Once we retire, that will be an income for us. We have some great renters right now. But, we also had one that drove her car all the way through the back of the garage wall.

Also of note: The interest rate for a non-owner occupied dwelling is higher than owner occupied. So, your monthly mortgage payment will be higher.