Last Saturday I took several of the Wealth School participants on a tour of REO (bank owned) properties in northwest Oklahoma City.  We looked at a total of seven properties. 

Why did we engage in this activity?  For starters, we wanted to take a look at some good deals that are always on the market.  Right now, there are plenty of bank owned properties coming onto the market. 

We also wanted our students to become more familiar with some of the neighborhoods.  We mainly focused on two areas. 

The first area was near NW 30 and Pennsylvania.  We took a look at several 2 bed, 1 bath houses.  Most of these properties didn’t need much work to get them rented.  The asking prices for these homes ranged from the high 20’s to the low 40’s. 

Our consensus was that these properties would rent for about $500 per month.  It was definitely worth putting an offer in all of the homes we looked at. 

The other area we checked out was in Bethany west of Rockwell and south of NW 10.  We identified two 4 bed 2 bath houses in that area.  Both properties we priced in the low 60’s.  We were interested because the properties would have comparables of about $120,000 once they were fixed up. 

One of the properties was a VA repo.  The property was in decent condition, but in my opinion not cheap enough yet to buy for a rental. 

My experience with VA properties is the VA is not very flexible on price.  It wasn’t an ideal rental because of the 2 upstairs bathrooms. 

The other property was in worse condition.  It backed up to a condominium development that has a very bad reputation.  I advised the class that this property would not make a good fix and flip because of the issue with neighborhood. 

However, as a rental at a much lower price, this property would make good sense. 

All in all, the REO tour was a success.  We look forward to having more in the future.