Tulsa Investment Properties: 3 Examples


Today’s blog post will provide some current (November 2014) market information for 3 examples of actual investment properties in the Tulsa metro area. At the request of several of our clients, we will provide information about the location, market value and rental value of each of the following Tulsa investment properties to give real estate investors an idea of what the Tulsa market currently has to offer. These properties are not for sale, and the data provided herein is for informational purposes only.


Example 1: “The Archetype”

1-front

 

  • Location: Owasso, Oklahoma (74055)
  • Year Constructed: 1956
  • Bedrooms: 3
  • Bathrooms: 1
  • Garage: 1 car
  • Size: 914 sq ft
  • Market Value (Nov 2014): $75,000 – 80,000
  • Monthly Rent (Nov 2014): $850

I call this example the “archetype” because it fits the mold of what many would consider a “typical” rental property. Properties similar to this example can be found all over the Tulsa metro area. Tulsa investment property example #1 is located in the older downtown area of Owasso, OK, but similar properties can be found in the other suburban areas such as Broken Arrow, Jenks, and Claremore as well as widely in the city of Tulsa itself.

1-kitchen

This property is built on a crawl space foundation, and features central heating and cooling via metal ductwork located in the crawlspace, although many similar properties have been updated to run the ductwork overhead.

The kitchen is simple but functional, with a stove and dishwasher. The tenant would provide the refrigerator, washer/dryer, and microwave (if desired). The property has the original wood windows and wood floors, which have been refinished. Wood floors are common for properties built during this time frame (40’s-50’s) in Tulsa.

The flooring in the kitchen and baths is linoleum. Countertop surfaces are typically laminate.

1-bathroom

The bathroom of example #1 has been fully remodeled to include a fiberglass tub/shower combination and a simple vanity as well as a new toilet.

The bedrooms in this property are small but functional, with smaller closets in each room.

There is a small laundry room in this property that is heated and cooled, but in many similar properties the laundry would be located in the garage.

As stated earlier, similar properties can be found widely in the Tulsa area and can make attractive investment properties because of their simplicity and ease of tenant placement. In general, it is our opinion that properties such as these may provide higher income (cash flow) potential because of the lower acquisition prices, but they may not have the same long-term price appreciation potential of newer, larger properties such as examples #2 and #3.


Example 2: “Newer Construction, Low Cost”

 

2-front
  • Location: Claremore, Oklahoma (74017)
  •  Year Constructed: 2003
  •  Bedrooms: 3
  •  Bathrooms: 2
  •  Garage: 2 car
  •  Size: 1111 sq ft
  •  Market Value (Nov 2014): $100,000-105,000
  •  Monthly Rent (Nov 2014): $900

2-kitchenTulsa investment property example #2 is located in a newer, suburban neighborhood in Claremore.

Properties similar to this example can be found in some of the suburbs of Tulsa such as Owasso, Broken Arrow, and Claremore, especially where land is more plentiful and allows for lower lot prices for builders.

This property sub-type typically features wood frame on concrete slab construction, vinyl siding with a small amount of brick exterior, vinyl tilt-out windows, and 3 tab asphalt roofing.

Properties such as these typically have an open eat-in kitchen and a single living area. The property may or may not have a fireplace at this price range. The laundry room is normally located inside, often times in a hallway between bedrooms.

2-bathroom

Flooring in this property type is typically carpet and linoleum.

Kitchens normally include basic cabinetry, a stove, dishwasher, and built-in microwave or vent hood.

Bathrooms are simple but functional with fiberglass tub/shower combinations being typical.

Example #2 provides a mid-point between example #1 and example #3 and a trade-off between acquisition price and monthly rental rate.

Investors may choose this type of Tulsa investment property because of the newer construction and strong rental demand for these type of homes. They may have slightly better appreciation potential than property type #1 but probably less than #3.


Example 3: “Newer Construction, Higher Cost”

 

3-front
  • Location: Owasso, Oklahoma (74055)
  • Year Constructed: 2005
  • Bedrooms: 4
  • Bathrooms: 2
  • Garage: 2 car
  • Size: 1814 sq ft
  • Market Value (Nov 2014): $150,000-$160,000
  • Monthly Rent (Nov 2014): $1250

3-kitchen

Example #3 is an example of newer, full-brick homes that are common in the newer Tulsa suburbs such as Owasso, Broken Arrow, Jenks, and Bixby.

This property type features wood frame on slab construction (post-tension), architectural asphalt shingle roofing, vinyl windows, and full-brick exteriors. These properties are typically located in larger subdivisions that may have additional amenities such as a community pool and/or playground and normally require HOA membership.

Properties in this price range may have 2 living areas, a separate eating area in the kitchen or even a formal dining room. This property type also often features a fireplace.

Flooring is typically carpet and ceramic tile in the kitchens and baths and some properties in this price range may even have some oak wood flooring.

The kitchens typically feature slightly upgraded cabinetry and a stove, over-the-range microwave, and dishwasher. At this price level a property may have granite or other solid-surface counter tops and some upgraded hardware.

3-bathroom

The bedrooms in this property type are typically a bit roomier, and the master bedroom usually features a walk-in closets.

Bathrooms are larger than property type #2, and may feature his and her vanities as well as a separate tub and shower or even a jetted tub.

Investors may choose this property type because of the newness of construction, the full-brick exterior, and architectural roof which can be expected to last longer than lower classes of construction.

Properties similar to this example may have better long-term appreciation potential than example #1 or #2 because they may be located in a more desirable area and have higher resale demand due to the property amenities.

Of course the trade off is the higher initial acquisition price, which may impact the income potential (cash flow) of the property. This trade off is normal, and to be expected. We manage a mix of properties similar to these examples, and investors have reported success with all 3 property types.

It should be remembered that prices and rental rates can vary widely depending on location, amenities, and other factors. Market conditions are always changing so you should consult with a real estate professional to determine current market conditions.

Home Finders Leasing and Management, Inc. can assist real estate investors in the acquisition and management of Tulsa investment properties. To learn more about how we can help you achieve your real estate investing goals, please call us today: 918-665-0212.

Regards,

Nate

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