How to Build a Diversified Real Estate Portfolio in OKC and Columbus

Smart investors know that long-term success in real estate doesn’t come from “all-in” bets on one property type or neighborhood. Instead, it comes from diversification—spreading investments across different markets, property types, and strategies.

For out-of-state investors, Oklahoma City (OKC) and Columbus, Ohio, offer two dynamic yet complementary markets. OKC provides affordability and strong rental yields, while Columbus offers steady appreciation, population growth, and a diverse economy.

This post will guide you through how to build a balanced, diversified real estate portfolio in these two cities so you can enjoy reliable cash flow, long-term equity growth, and protection from market shifts.

Why Diversification Matters in Real Estate

Diversification lowers risk by making sure you don’t rely too heavily on one:

• Tenant base (e.g., only students or only Section 8)

• Property type (single-family vs. multifamily)

• Market condition (boom vs. slowdown)

👉 In short: Don’t put all your eggs in one basket.

Understanding the Strengths of OKC & Columbus

Oklahoma City (OKC):

• Strengths: Affordable housing, landlord-friendly laws, high rental yields.

• Best For: Cash-flow investors, BRRRR strategies, long-term buy-and-hold.

• Risk: Slower appreciation compared to coastal markets.

Columbus, Ohio:

• Strengths: Strong job growth, thriving universities, tech & healthcare hub.

• Best For: Long-term appreciation, multifamily, student housing.

• Risk: Stricter tenant laws, higher competition.

👉 When combined, these markets give you both steady income (OKC) and equity growth (Columbus).

Types of Properties to Diversify Into

Single-Family Homes (SFH)

• Pros: Easy to finance, stable tenants, strong demand.

• Cons: Vacancy hurts more (1 tenant = 100% vacant).

Small Multifamily (2–4 Units)

• Pros: Better economies of scale, multiple tenants reduce vacancy risk.

• Cons: Harder to sell than SFH, financing slightly stricter.

Large Multifamily (5+ Units)

• Pros: Stronger cash flow potential, scalable, attracts professional managers.

• Cons: Higher entry cost, more complex financing.

Student Housing

• Pros: High demand near universities (OSU in Columbus, OCU in OKC).

• Cons: Higher turnover, requires strong property management.

Short-Term Rentals (STRs)

• Pros: Higher nightly rates, good in tourism-heavy OKC areas or Columbus events.

• Cons: Regulatory risk, seasonal fluctuations.

Diversification Strategies for Investors

By Location

• 50% OKC (cash flow)

• 50% Columbus (appreciation + equity growth)

By Property Type

• 40% single-family

• 30% small multifamily

• 20% student housing

• 10% short-term rentals

By Tenant Mix

• Families (long-term stable renters)

• Students (high turnover but strong demand)

• Section 8 / government-assisted renters (guaranteed rent, but stricter compliance)

Financing & Scaling a Diversified Portfolio

• Conventional Loans: Best for SFHs and 2–4 units.

• DSCR Loans: Ideal for out-of-state investors using rental income as qualification.

• Commercial Loans: For 5+ units, often based on property performance, not personal income.

• Partnerships & Syndications: Share risk, raise capital, and scale faster.

👉 Pro Tip: Use BRRRR in OKC to build equity quickly, then refinance and invest in Columbus for appreciation.

Managing a Diversified Portfolio

Out-of-state investors need systems to avoid overwhelm:

• Property Managers in both OKC & Columbus.

• Accounting Software (Stessa, Buildium, or QuickBooks).

• Clear KPIs:

  • Cash-on-cash return

  • Occupancy rate

  • Expense ratio

Risks of Diversification (and How to Avoid Them)

• Too Much Too Fast – Scaling without systems = chaos.

• Over-leverage – Diversification with too much debt can backfire.

• Poor Market Research – Don’t invest in a submarket you don’t understand.

👉 Balance is key: Diversification spreads risk, but each property should still meet your investment criteria.

FAQs

Question	Answer
Why diversify across OKC and Columbus?	OKC provides strong cash flow; Columbus provides long-term appreciation and stability. Together, they balance risk and return.
What’s the best mix of property types?	Many investors start with SFHs in OKC, then move into multifamily or student housing in Columbus.
Can I manage a diversified portfolio from out of state?	Yes—hire reliable property managers in both markets and use online tools for tracking performance.
Should I diversify right away or focus first?	Start with 1–2 properties in one market, then expand. Build systems before scaling.
Is diversification safer?	Yes, but only if each property still has strong fundamentals (cash flow, location, tenant demand).

Conclusion

Diversifying your portfolio across OKC and Columbus gives you the best of both worlds:

• Cash flow stability in Oklahoma City

• Long-term appreciation in Columbus

By spreading your investments across property types, tenant bases, and financing structures, you’ll build a portfolio that weathers economic shifts and creates wealth for decades to come.

The key takeaway? Don’t chase deals blindly. Diversify with intention, balance, and clear goals.

Diversification isn’t just a strategy—it’s a mindset. And at Capital City REI, we believe every investor deserves the tools and guidance to build a resilient, high-performing portfolio that stands the test of time. If you’re exploring OKC, Columbus, or both, let’s work together to position your investments for long-term success. Contact us today.