Guide to House Hacking in Oklahoma City, Oklahoma

Learned about house hacking and now you’re thinking about house hacking in Oklahoma City? While there are opportunities to find good properties to house hack in Oklahoma City, or “The OKC” as many locals refer to it, there are also plenty of challenges of pulling off a good deal here.

The good news is with the right information, guidance, and strategies you will still be able to analyze available properties in Oklahoma City, look at the property valuation & cash flow potential, and find the right house hacking deal that meets your needs.

In this post, we’re going to give you all the information you need to do just that. From discussing how landlord or tenant friendly the city is to using data to scan the markets, this is the only guide you’ll need to master house hacking in the OKC.

Let’s dive in!

Is Oklahoma City Tenant Friendly or Landlord Friendly?

From the state level, Oklahoma is landlord-friendly versus tenant friendly. This is due to the fact there are very few regulations in Oklahoma regarding caps on raising rent and the eviction process tends to broadly and strongly support landlords in the state.

This can always vary from judge to judge and contracts still need to be honored, but generally speaking the courts tend to rule much more consistently for landlords in tenant disputes in the state of Oklahoma.

The Landlord Rights Vs Tenant Rights in the state of Oklahoma apply to the city of Tulsa, which as of this post doesn’t appear to have any additional local ordinances specifically aimed at landlords or tenants in addition to what’s outlined by the state.

The quick process for serving eviction means long-term problems with rent non-payers or squatters is a rarity in Oklahoma City. The locations quite landlord friendly which is a positive when it comes to looking at investment.

Oklahoma City Demographic Data Analysis

The 6 demographic data points that we’ve learned to use when analyzing a market are population growth, income growth, property value growth, crime level, crime change, and job growth.

These help paint a picture of not only the overall health of the real estate market in our target city but also how the overall health of the city looks.

When it comes to these six metrics, this is how Oklahoma City compares to our benchmarks:

The data analysis here paints an overall positive picture for Oklahoma City as a house hacking target but with some very important caveats.

Oklahoma City’s Demographics Are Good For House Hacking

The population growth is healthy, coming in solidly above 20%. Income growth also shows a solid 58.8% growth, well above the 30% benchmark set.

Property value growth is spectacular, showing a stunning 112% gain since 2000. That remarkable growth shows that the right properties will not only cash flow but provide major opportunity for value growth in the years and decades to come.

Job growth is very good and the crime change is going in the right direction with a 5% drop, but the overall crime numbers are not good. They are within the metrics we set, though not by overly much. This also makes it likely that finding a good deal in a low crime neighborhood might be harder since there is likely limited options in high demands in those neighborhoods generally considered safe.

Further analysis will be important in determining this. For investors willing to do the homework, or who are comfortable with neighborhoods some might consider “rough” or “working class,” this also provides opportunity since some investors will be scared off.

Overall, a Oklahoma City house hack looks quite good based on the above metrics. Although the crime numbers are a bit concerning and bear watching, all metrics met their goal with most exceeding the ideal range by a large margin.

5 Oklahoma City House Hacking Strategies

There are many strategies for house hacking in Oklahoma City, each with their own pros and cons. When it comes to getting in on the hot real estate market in this city, it’s important to know what your options are so you know what types of properties to look for.

Here are five primary house hacking strategies that work in Oklahoma City:

• Duplex or Triplex
• House with multiple apartment units (3-5)
• Rent out bedrooms of traditional house
• Renovate garage or attic into an apartment
• Airbnb house hacking

Let’s dive into more of each one right now!

Buying a Duplex or Triplex

Most buyers focus on a house, but there are some pretty fantastic deals on duplexes and triplexes, in part because fewer buyers are thinking about these types of housing. Living in one while renting out the others is an easy way to cut into that mortgage payment or even make cash flow on top of having your full mortgage covered.

For a great case study of why duplex house hacking in Oklahoma City can be a great idea, take a look at this case study published on LinkedIn.

Look for a Multi-Unit Home

One of my first apartments out of college was in a house that was built as a “3 units in one house” setup. This was great for the owner (a friend) who got rent from two of us who had our own space, our own apartments up the stairs from the entryway, and he had his entire mortgage covered and then some.

These types of housing units are common where they look like a giant family house from the outside but have 3, 4, 5 or more apartment units inside. This also provides more privacy and forces less shared space than renting out a bedroom from a conventional family home.

These properties are built for house hacking and can be found throughout many working class neighborhoods throughout Oklahoma City which makes scouting locations very important.

The average cost of a multi-unit house in Oklahoma City is $131,303.

Rent Out Bedrooms from a Multi-Bedroom House

This classic house hacking strategy can be a great way to get rent to help on your home’s mortgage, and is a favorite for those who are young and single in particular – but it can work with couples or families. If you close a great deal on a 4-bedroom house but only need one or two bedrooms, those extra bedrooms can be rented.

This is how many younger real estate investors get their first property – by renting to other young friends who need a place to live.

Renovate a Garage or Attic into an Apartment

Basement apartments generally aren’t a thing in Oklahoma due to the soil, and even if you have a rare home with a basement, it’s generally not a great idea to renovate the basement in case of likely flooding. Depending on the property, creating a garage or attic into an apartment can be a viable option.

This can add a rental option to a property that doesn’t appear to have one at first glance and open up more Oklahoma City house hacking options.

House Hack Via Airbnb

The Airbnb route is always interesting because when it can be pulled off in a highly sought after tourist city, it can be incredibly profitable. The NBA’s Oklahoma City Thunder are a popular attraction in the city and Norman, home of the University of Oklahoma, is a suburb.

While Oklahoma City does have some great events, museums, and sites, outside of the two major sports draws they aren’t necessarily known as a major tourism city. This limits the Airbnb potential compared to cities like Austin or Las Vegas, but that doesn’t mean Airbnb isn’t a viable option.

Properties closer to the University of Oklahoma, especially within walking distance of the Gaylord Family Oklahoma Memorial Stadium, or the Paycom Stadium (where the Thunder play) are going to be much more likely to see consistent success using Airbnb for house hacking OKC than properties in other locations.

House Hacking Oklahoma City Tips

Oklahoma City has some serious potential and if you can find a good deal in the right neighborhood using the information in this article, that property can be an absolute gem in your portfolio.

Here are additional tips for house hacking in Oklahoma City.

• Use the MLS to quickly see a large number of properties on the Oklahoma City market
• Start with neighborhoods you’re most interested in, the strategies that meet your house hacking preferences, and move on from there
• Don’t limit yourself to just one type of property
• If you’re renting to a stranger always do a background check on rental applicants
• If you’re not from Oklahoma City use online forums to get advice from people living in OKC about what neighborhoods to look at and/or avoid…but verify the information you’re given

How Do I Fund an Oklahoma City House Hack?

Despite the surging property values the cost of living in Oklahoma City is notably cheaper than your average U.S. location, especially when it comes to cities. This opens up the number of affordable options for potential house hacks.

Three great options for funding a house hack are:

• Conventional Loan
• FHA-backed Loan
• VA Housing Loan

First-time home buyers will have the most luck with an FHA-backed loan, but this can be a great way to get a home loan that they otherwise wouldn’t qualify for. If you haven’t bought a house before, an FHA-backed loan can be a great way to fund a first property and the house hack to follow.

Veterans should take a look at VA Housing Loan options. While some believe that VA loans can’t be used for house hacking, this is wrong! As long as the veteran is living in the residence, house hacking is allowed with a VA housing loan.

These are potential options outside of conventional loans, which are always on the table as an option but also require credit scores and other criteria that not every potential buyer will be able to meet.

Average Property Costs Oklahoma City, OK

• Detached houses $217,712
• Townhouses $367,795
• 2-Unit Structures $137,362
• 3-4 Unit Structure $131,303
• 5-or more Unit Structures $17,377

Oklahoma City Neighborhood Considerations

Although the crime rate is still in the workable range, the overall crime rate of Oklahoma City is somewhat high and certain neighborhoods are going to be much more desirable than others. So don’t just go on how cheap a property is compared to the average price, but pay attention to the neighborhoods that those properties are in.

This doesn’t mean that there aren’t deals in each neighborhood, but if crime rates and the overall safety of an area are high on the list of priorities, then it’s important to know the safer local neighborhoods versus the rougher ones.

Safest Oklahoma City Neighborhoods

• Piedmont
• Deep Deuce
• Forest Park
• Edmond

Rougher Oklahoma City Neighborhoods

• Southside
• Lyrewood
• Western & Wilshire

There are neighborhoods that fall across the spectrum between the two extremes, but this just shows the importance of due diligence. There are plenty of great Oklahoma City house hacking opportunities so why settle for a mediocre deal when there are much better ones to be found?

Oklahoma City – A City with Serious House Hacking Potential

While it’s not without its challenges, Oklahoma City, Oklahoma is still a city that offers plenty of opportunities when it comes to real estate investment via house hacking. Due diligence is important with looking at the properties, the neighborhoods, and knowing how you want to employ a house hacking strategy but there is plenty of potential in this city.

If you’re interested in house hacking Oklahoma City, be sure to check out our free house hacking calculator to analyze all your potential deals.