Why you should hold onto your Oklahoma City Rental Properties: (Part 2)
Real estate prices in the Oklahoma City relative to rental rate are low. Click here to review the article.
If you are considering selling your Oklahoma City rental properties, don’t do it. This is the second article telling you just why I believe that you are far better off holding onto your rental properties than selling them. In the last article, I showed you why, in my opinion, real estate prices are relatively low in the Oklahoma City metro area. In the blog post, I show you why the the OKC rental market is strong. So here is…
Reason #2: Rental Market is Strong in the Oklahoma City metro area
The Oklahoma City metro area economy has been held out nationally as model of success. But it certainly hasn’t always been that way. In the mid-1980’s, Oklahoma City was in the midst of an oil bust. People were streaming out the city because there were no jobs. This was the time of the notorious Penn Square Bank failure. The local economy was somewhat like that of current day Detroit.
A friend of mine who got started in real estate investing at this time bought up as many houses as he could, because he was able to buy them for $5,000. He now owns almost 400 single-family homes.
The economy limped along through the early 1990’s. It was in 1993 that the City of OKC embarked on the first of its Metropolitan Area Projects (MAPs). These were projects with the goal of raising the quality of life in the Oklahoma City area. MAPs is widely seen as the catalyst for the revitalization of Oklahoma City.
Since the 1980’s, the economy of Oklahoma City has become less dependent upon oil and gas. Oklahoma City has one of the lowest unemployment rates in the US. Here are some of the highlights:
• A growing biomedical technology campus at the Oklahoma University Health Science Center,
• Several major US oil and gas companies are headquartered here, including Devon, Chesapeake, and Sandridge,
• A large number of state and federal offices,
• Some manufacturing and fabrication facilities,
• Some corporate offices, such as Sonic Corporation, Express Personnel, etc.,
• Tinker Air Force Base,
• An NBA franchise (Oklahoma City Thunder),
• And many others.
These businesses keep the economy moving forward.
Rents have gone up, and keep going up. With the tight credit for home buyers, most people can’t buy a home because they don’t qualify to get a mortgage. That has pushed up rents.
My property management company, OKC Home Realty Services, LLC, is certainly having great success in keeping our rental properties leased out.