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The Hottest Northwest OKC rental neighborhood (property management nw okc)

Jul 20, 2013| 0 Comment

The near-downtown area of Oklahoma City is one of the hottest areas in the metro right now for investors.  So how good is the cash flow, based on actual numbers?  As the owner of a property management nw okc company, this type of information is critical to stay on top of what the market is doing.

In this blog post, I reveal the cash flow for the Inner Northwest Oklahoma City metro area.  The data used in this analysis was presented in Volume 1, No. 1 of The Nachatilo Report.   I created The Nachatilo Report because there is no compilation of rental rates for the Oklahoma City metro area.

I collected the data June 2013.  It is a snapshot of the 2nd quarter.  As you’ll see, the neighborhood with the highest cash flow potential in the Oklahoma City metro area is the Inner Northwest OKC area.

Inner Northwest Area (property management nw okc)

The Inner Northwest (INW) area is bounded by NW 23rd Street on the north, I-235 on the east, I-40 on the south, and County Line Road on the west.  In addition, the INW contains the whole downtown area, including Midtown.  The Oklahoma State Fair grounds are located in the INW area.  It contains an industrial complex along the north side of I-40.   You can view the Inner Northwest Oklahoma City area on a google map by clicking this link.

Demographic Data, Inner Northeast Oklahoma City Area

Demographics

INW

INE

IS

BNE

OKC Metro Area*

Latino

13.3

1.8

27.7

1.7

8.0

White

59.5

8.0

52.4

6.6

66.5

Black

13.9

86.8

9.3

89.1

16.0

Native American

4.1

1.0

5.0

1.0

; 3.0

Asian

5.4

0.3

0.9

0.2

3.1

Multi

3.3

2.4

3.8

2.3

3.1

*Weighted averages based on population for the OKC Metro area.

As you can see from the above table, the African American population of the INW (13.9%) and IS (9.3%) are lower than the average African American population of the OKC metro area (16%).  In the INW area the white population (59.3%) is slightly less than the OKC metro average, and Latino population (13.3%) is slightly higher than the OKC metro average.

Economic Data, Inner Northwest Oklahoma City Area (property management nw okc)

Economics

INW

INE

IS

BNE

OKC Metro Area*

Population

30,310

9,852

8,757

8,147

25636

High School Education or Higher (%)

77.1

72.2

57.0

73.4

82.7

Below Poverty Level (%)

23.1

31.0

29.0

29.4

16.5

Unemployed (%)

3.9

6.6

5.5

5.9

3.6

 Median Income ($)

27,278

 20,931

22,750

27,745

36,474

Here are the results of the economic data analysis from the Inner northwest OKC area.  

  • Levels of education are slightly lower in the Inner Northwest OKC areas than in the OKC metro area overall.
  • The percentage of residents below the poverty line (23.1%) in the Inner Northeast area is greater than the OKC metro area overall (16.5%).
  • The percentage of unemployed residents in the Inner Northeast area (3.9%) is slightly higher than the OKC metro area (3.6% mean).
  • Median incomes from the Inner Northeast area ($27,278) is lower than the overall OKC metro area ($36,474 mean).
  • The INW are has an estimated population (30,310) that is larger than all three other individual areas combined.

Construction Data, Inner Northwest Area (property management nw okc)

Area

sq feet

Yr Blt

Beds

Baths

INE

1171

1945

2.6

1.1

INW

1066

1944

2.4

1.0

IS

1141

1948

2.9

1.3

BNE

1345

1976

3.5

1.8

OKC Metro

1476

1968

3.0

1.7

Houses in the INW were built between the 1920s and 1960s (1944 average), compared to the overall average of 1968 for the OKC metro area overall.  They are small, averaging 1,066 square feet, having 2 to 3 bedrooms and mostly 1 bathroom.

Market Rental Data, Inner Northeast Oklahoma City Area (property management nw okc)

Area

Mean Rent

Mean Security Deposit

Mean Rent / 1,000 sq feet

Mean Rental Income Ratio

Estimated Population

INE

698

520

601

2.4%

9,852

INW

739

725

 710

1.2%

30,310

IS

685

574

 619

1.8%

8,757

BNE

918

778

693

1.5%

9,852

OKC Metro

1,153

1,059

777

1.2%

Here are the rental price averages for the Inner Northwest Area:

  • Rental prices from the INW area average $739 per month,  less than the overall average of $1,153 per month for the OKC metro area overall.
  • Also, the rent per 1,000 square feet is $710 per month, which is less than the average rent per 1,000 square of the OKC metro overall ($777 per month).
  • The Rental Income Ratio (RIR), an indication of the cash flow potential of a property, is the amount of monthly rent divided by the value of the property.  I obtained the property value from the Oklahoma County Treasurer, obtained from their county website.  The RIR for the INW area was 1.2%, equal to an overall RIR of 1.2% for the Oklahoma City metro area overall.  It is the lowest RIR of all four areas discussed herein because property values are the highest.

Inner Northwest Neighborhoods of Interest

Classen Ten Penn is bounded by Classen Blvd on the east, NW 23rd Street on the north, NW 10th Street on the south, and Pennsylvania on the west.  It is an area of older homes.  The Plaza District, an area of retail shops and art galleries, is along NW 16th Street.  It’s an area that is undergoing a transformation as younger people move into the neighborhood.  There is currently a wave of new construction on lots where older homes had been torn down.

Neighborhoods west of Pennsylvania Avenue are in good, steady demand.

To find out more, contact OKC Home Realty Services, LLC.

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