Rental / DSCR in Broken Arrow

Only against the city's 2026 short-term rental ordinance, and it is stricter than most metros. Broken Arrow Ord. No. 3905, effective April 7, 2026, caps occupancy at two persons per sleeping area and no more than 12 per dwelling unit, and no natural person may hold more than four active STR licenses city-wide in residential zoning, attributed through beneficial ownership so an entity wrapper does not defeat the cap. The most important line for a purchase file: the license "shall not be transferable" and automatically terminates on any transfer of title, so buying a house with an active, income-producing STR license does not buy the license, and neither does buying the LLC that holds it. Underwrite the DSCR file on what you can relicense, not on the seller's trailing STR income.

Check the parcel, because the two sides of Broken Arrow carry a materially different tax line on an identical house. On a $300,000 non-owner-occupied house in the Broken Arrow school district, at the 2025 levies, the Wagoner County side runs about $3,892.90 a year (11.2% assessment ratio, 115.86 mills), while the same house on the Tulsa County side runs about $4,245.78 a year (11.0% ratio, 128.66 mills), a $352.88 spread. Widen it to the Bixby-schools part of the city and the same house runs about $4,401.54, roughly $509 above the Wagoner-side figure. Pull the county and levy code for the specific parcel before you lock a DSCR escrow line, not a city-wide average, and remember Oklahoma's 5% valuation cap resets the year you buy.

A family household in newer, lower-maintenance stock, not a distressed-property or student thesis, and it is a quality trade rather than a yield trade. Broken Arrow's median year structure built is 1993 against Tulsa city's 1972, 79.7% of the stock is one-unit detached, and median household income runs $85,220 against Tulsa city's $58,407. There is no four-year college here, so do not underwrite a student-rental angle. The honest counterweight: Broken Arrow has fewer than 12,000 renter households city-wide against Tulsa's roughly 82,000, and a rough gross rent-to-value ratio of 6.61% as of June 2026 against Tulsa's 6.85%. This is a durable-tenant, retail-exit market, not a deep rental pool.

No long-term rental registration or inspection article was found in the chapter that already houses the short-term rental rules, but that is not confirmation the city has none anywhere. Chapter 7 of the Broken Arrow Code (Business Regulations and Licenses), the chapter containing the short-term rental article, was read in full and its other 16 articles cover unrelated licenses (taxicabs, pawnbrokers, massage, hotels and motels, and similar), with no long-term rental registration, licensing, or periodic-inspection program among them. The rest of the municipal code was not swept for this file, so treat that as an open question rather than a confirmed absence, and no ordinance capping unrelated occupants in a long-term rental was located either. Confirm current status with Broken Arrow Community Development before you finalize a per-bedroom rent roll.

At least 20%. We lend up to 80% LTV on a DSCR rental, so on a $300,000 Broken Arrow house that is $240,000 from us and $60,000 from you (300,000 x 80% = 240,000). Loan amounts run $100,000 to $3 million. Put the tax line into the same ratio before you lock it: that same $300,000 house carries about $3,892.90 a year in escrow on the Wagoner County side of the city and about $4,245.78 to $4,401.54 on the Tulsa County side, depending on the school district. Subject to underwriting.

Only if short-term income is part of the plan. Broken Arrow caps any one natural person at four active short-term rental licenses city-wide in residential zoning, and that cap is attributed through beneficial ownership, so holding licenses through separate LLCs does not raise it. A buy-and-hold, long-term rental portfolio is not subject to that cap, but diligence across the metro is still a two-county exercise: Broken Arrow spans Tulsa and Wagoner counties, each with its own assessor, levy sheet, and licensed abstractor. If you are financing several doors as a pool, our portfolio loans can carry them on one facility.

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.