+14052325800

Report Reveals the Highest Cash Flow Neighborhood in Oklahoma City (property management northeast oklahoma city)

Jul 13, 2013| 0 Comment

This blog post reveals the highest cash flow neighborhood in Oklahoma City.  The data used in this analysis was presented in Volume 1, No. 1 of The Nachatilo Report.

What’s the big deal?  Cash flow.  The highest cash flow potential in the Oklahoma City metro area neighborhood is the Inner northeast okc area.

The Inner Northeast Area (property management ne okc)

The Inner Northeast (INE) area is bounded by I-44 and NE 23rd Street on the north, I-35 and the Oklahoma River on the east, I-40 on the south, and I-235 on the west.  It contains the state capital building complex.  In addition, it contains a great number of other business along Lincoln Boulevard, including the Oklahoma University (OU) Medical Center.  Bricktown is located on its southern margin.  It also contains the Oklahoma City Zoo, Remington Park, and the Omniplex, all in the northern part of the INE.  

You can view the Inner Northeast Oklahoma City area by clicking this link.

Demographic Data, Inner Northeast Oklahoma City Area (property management northeast oklahoma city)

The table below shows the demographics of the INE area, surrounding areas, and the OKC Metro area overall.

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. Demographics of the LRHR Areas.  INW, Inner Northwest; IS, Inner South; BNE, and Britton Northeast. (property management ne okc)

As you can see from the above table, the African American population of the INE (86.8%) and BNE (89.1%) are significantly higher than the average African American population of the OKC metro area (16%).  In those areas, the white and Latino populations is also significantly lower than average.

Economic Data, Inner Northeast Oklahoma City Area (property management northeast oklahoma city)

The table below shows economic data for the Inner Northeast OKC area, surrounding areas, and the OKC metro area overall.

Economics

INW

INE

IS

BNE

OKC Metro Area*

Population

30310

9852

8757

8147

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

(property management northeast oklahoma city)

Here are the results of the economic data analysis from the Inner northeast OKC.  (property management northeast oklahoma city)

  • Levels of education are lower in the Inner Northest OKC areas are significantly higher than in the OKC metro area overall.
  • The percentage of residents below the poverty line (31%) in the Inner Northeast area is greater than the OKC metro area overall (16.5%), and the highest in the city.
  • The percentage of unemployed residents in the Inner Northeast area (6.6%) is the greatest in the OKC metro area (3.6% mean).
  • Median incomes from the Inner Northeast area ($20,931) is the lower median income of the overall OKC metro area ($36,474 mean).

The table below shows average square footage, year built, number of beds, and number of baths for single-family homes located in the INE area, the surrounding areas, and the OKC metro area overall. (property management ne 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

(property management northeast oklahoma city)

As you can see from the table, the houses were built between the 1920s and 1960s.  They are smallish homes, averaging between 1,066 square feet and 1,171 square feet, having 2 to 3 bedrooms and mostly 1 bathroom.  They are considerably smaller in each of these respects to the overall average property in the OKC metro area.

Market Rental Data, Inner Northeast Oklahoma City (property management northeast oklahoma city)

The table below show market rental data for the Inner Northeast OKC area, surrounding areas, and for the OKC metro area overall ((property management ne 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%

9852

INW

739

725

 710

1.2%

30,310

IS

685

574

 619

1.8%

8757

BNE

918

778

693

1.5%

9852

OKC Metro

1,153

1,059

777

1.2%

(property management northeast oklahoma city)

Rental prices from the INE area average $698 per month.  They are all less than the overall average of $1,153 per month for the OKC metro area overall.

In order to better compare average rental rates for these areas, a mean rental rate per 1,000 square feet was calculated.  As shown on the table, the rent per 1,000 square feet is $601 per month, which is far less than the average rent per 1,000 square of the OKC metro overall ($777 per month).

Rental Income Ratio

Now, before you completely write off this area for investment, you must consider what it costs to buy these properties.  To make this evaluation, the Rental Income Ratio (RIR) was calculated.  The RIR helps to quantify the return on investment for the  areas.  Furthermore, the RIR is the amount of monthly rent divided by the value of the property.  The property value used in the analysis was obtained from the Oklahoma County Treasurer, obtained from their county website.  Surprisingly, the RIR for the INE area was 2.4%.  This compares to an overall RIR of 1.2% for the Oklahoma City metro area overall.

The market rental data show that the INE area has the highest cash flow potential of any properties in the OKC metro area.  You can find some fantastically cheap properties.  The biggest challenge owning these properties is the property management ne okc.

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

Post a Comment

Shares