We Buy Houses In Del City
We buy houses in Del City! We are proud of the fact that we buy houses in Del City because there are so few professional real estate investors that buy in the area. It’s an under served market that has a need for affordable housing. When we buy houses in Del City we are meeting a need for the community; and often times we are able to help serve our men and women in uniform as well!
Why is it hard to buy houses in Del City?
A few years ago it became very difficult to buy houses in Del City. Being close to Tinker Air Force Base has made the area popular with land lords and other real estate investors for a long time.
Up until recently many of the property owners in the area were investors that lived out of state. We had seen a lot of out of state investors, especially from places like California, buying up houses in the area and turning them into rentals. These rentals were a great way for out of state investors to produce rental income and serve our military at the same time.
A lot of times when people get stationed at Tinker Air Force Base they know that they are only going to be here for either short term or medium term. These service men and women will often look for a reasonable rental property that they can lease until they get stationed elsewhere. They know they won’t be here long enough to justify buying a house so they will often choose to rent instead.
The other reason that out of state investors would buy here is because buying a house in Del City can often produce a better return on investment than buying in other parts of the nation. A house that would cost over $150,000 in some areas may only have a fair market value of $50,000 – $65,000 here, and with rental rates the way they have been they may actually be able to produce positive cash flow which would not be realistic in other areas.
The problem was that a lot of these real estate investors were not professionals. They were usually individuals with limited investment experience. A pattern started to form where someone would rent one of these houses and when they would move out the house would need some minor repairs.
Often times instead of fixing these small issues the landlord would simply lower the rent for the next tenant. The problem was that this became a pattern. After each tenant would move out more stuff would need to be fixed and the rental rates would go lower and the deferred maintenance would keep growing.
After many years what we ended up with was a city full of run down rental properties whose out of state owners had neglected the houses. This ultimately caused rental rates to drop and the average condition of houses in the area to decrease.
What did the City do to address this issue?
On November 1, 2008 the City of Del City passed City Ordinance Number 1334, the Housing Inspection Program. This new city ordinance ” is a unique program developed by the City of Del City. Ordinance No. 1334 makes it unlawful to occupy (or cause to be occupied) a residential structure without a Certificate of Occupancy. It also makes it unlawful for a utility provider (including the Del City Municipal Services Authority) to initiate utility services to a property without a Certificate of Occupancy. Furthermore, a separate ordinance and a Resolution of the Del City Municipal Services Authority provide that city utility accounts would only be opened in the name of the primary occupant of a structure. Contrary to most claims, every residential structure in Del City is inspected, not just rental houses.”.
Under this program all houses in the city have to be inspected before they can be occupied. Inspections require a fee and almost every inspection finds at least some small detail which needs to be addressed before the Certificate of Occupancy will be issued. In theory this was supposed to make sure that landlords and other property owners addressed any issues that their properties had and gave them a reason to take care of those issues instead of just letting things go unattended.
What was the result of this new ordinance?
Unfortunately the best of intentions met with some unintended consequences. What was supposed to be a way to motivate home owners to keep their properties in better condition ended up causing landlords to sell their properties as quickly as possible.
Almost as soon as the ordinance was passed landlords started dumping their rent houses in the area. We saw a lot of out of state investors sell their rent houses and leave the area. Local investors stopped buying houses in the area and the housing market in Del City started falling apart.
What we have ended up with is a large amount of vacant housing in the area. There are entire apartment complexes that have been left to rot. Other major investors have let their apartment complexes and rent houses go into foreclosure and a few larger companies have even filed for bankruptcy protection.
Rental rates have fell and so have housing prices. It is not uncommon to see a house sell for less than half of what it would in Oklahoma City and we feel this is mainly due to fall out from this ordinance.
What has the response been from investors?
Oklahoma City is a big place and when we talk to other investors they feel that there are simply too many great opportunities to waste their time messing with houses in Del City. Most investors won’t buy a house here and they don’t even bother to go look a lot of the time.
Those that do consider it usually only consider buying some of the nicer houses in the area because they only want houses that they can resell to owner occupants. Even these experienced investors won’t normally considering keeping a house as a long term rental, even if they can get it at a stellar price. It’s just not worth all of the extra effort. Especially when you have to have a new inspection every single time you chance tenants. Even if it’s in the same week!
Will 181-Close-Now buy houses in Del City?
We buy houses in Del City because we are one of the most experienced professional real estate investment companies in the area. We have bought dozens of houses in the Del City area over the past few years. Some of the houses we’ve bought in the area have been houses that we later resold. Other houses that we bought have made great long term rental properties.
Yes, it’s more work and there can be a lot more headaches if we buy houses in Del City that we wouldn’t have to deal with in other areas but we think sometimes it’s worth it. We know a lot of investors around here and we only know of a few select individuals that will buy houses in Del City; but we buy houses in Del City because we know that good deals are made, not found.
We are interested in buying your house in Del City. If you have a vacant or inherited house in the area then we would be happy to see what we can do to meet your needs. Being one of the few investment companies that buys houses in Del City means that you can use our expertise and experience to sell your house fast.
If you would like to find out more about what we can do to help meet your needs, or to schedule an appointment for one of our Closing Options Analysts to come take a look at your house in the Del City area, simply give us a call at 181-Close-Now or fill out our Sell My House Fast Contact Form and our experienced staff will help make the entire process fast and simple.