Los Angeles, CA · Member since 2018 · 13 posts · 3 votes
Hello BP. I'm new to REI and just started my education a couple months ago. I've been practicing doing analysis on properties from the mls for fix and hold rental SFH. Wanted to get your opinion on this property in St. Louis MO. Seems like a great candidate after I ran the numbers.
Real Estate Agent · St. Louis, MO · Member since 2017 · 34 posts · 26 votes
8y
I would look at the average sale price in the zip code. I think zillow has that info. It really depends on your goals and ideas about "good numbers" but maybe starting with a criteria of having that average sale price in zip code to be no lower than $75,000.
I'm just spitballing an idea
This is going to be a shameless plug, but if you used a realtor you could get info and guidance pretty easily.
Los Angeles, CA · Member since 2018 · 13 posts · 3 votes
8y
Hi Megan, thanks for replying. I’m from Los Angeles actually. I don’t know much about the Baltimore area. From what I’ve seen online it looks like a c+ neighborhood. I’m really just trying to get some practice evaluating properties and areas.
St. Louis, MO · Member since 2017 · 9 posts · 5 votes
8y
This property is in the heart of North City. It would be considered a war zone property. As a new investor and also being remote, I would highly suggest staying away from this investment.
Real Estate Agent · St. Louis, MO · Member since 2017 · 34 posts · 26 votes
8y
I would look at the average sale price in the zip code. I think zillow has that info. It really depends on your goals and ideas about "good numbers" but maybe starting with a criteria of having that average sale price in zip code to be no lower than $75,000.
I'm just spitballing an idea
This is going to be a shameless plug, but if you used a realtor you could get info and guidance pretty easily.
Rental Property Investor · St. Louis, MO · Member since 2018 · 51 posts · 34 votes
8y
St. Louis is very block-by-block so you will need to be very careful when evaluating deals in the area. In general, I would stay away from the North City area (63113, 63106, 63107, 63115, 63102, 63147). These are in my opinion the "War Zone" where most of St. Louis City's violent crimes are reported. My suggestion is to research each zip codes carefully and, perhaps, look to have someone on the ground to help you out.
Rental Property Investor · Saint Louis, MO · Member since 2014 · 313 posts · 326 votes
8y
I second all the responses so far. Stay away from this area. South city is a good rental market for small multis and some older SFR. Affton/south county is a good place for SFR rentals. I've seen many people who say they do well with SFR rentals in parts of North and Central St. Louis County, but you really need to know which areas to target and stay away from. The local municipalities landlord laws can vary as well and make a big difference.
Probably best to find some boots on the ground to guide you. St. Louis is a very fractured market which means there are as many opportunities as there are landmines.
Rental Property Investor · Saint Louis, MO · Member since 2017 · 397 posts · 469 votes
8y
Agree with everyone above. Boots on the ground will be important at some point!
But while you're still just running numbers as a learning exercise, you can use the crime maps on Trulia and use Google Maps to view the street. Just to give you an idea of whether the area is a war zone or not. The quality of the area and your willingness to deal with different types of property will be important to help you understand how to run your numbers.
Saint Louis, MO · Member since 2018 · 4 posts · 5 votes
8y
Have to agree with the others to stay away from most of north St. Louis city. Most investors keep to south city. A lot of the investors here have properties in neighborhoods like Dutchtown and Gravois Park—these are the more dangerous areas of south city, where a very significant portion of the violent crimes take place—but they also offer sweeter deals. A lot of these are small multifamily buildings with good returns.
Trulia's crime map is useful, but it's also kind of silly and imprecise sometimes on how it numbers crimes. I recommend using the city PD's map of registered crimes: http://www.slmpd.org/crime_mapping.shtml
But if you're really interested in SFH, you might also consider the areas in STL County that some of the others mentioned, i.e. St. Ann, Bridgeton, Maryland Heights, etc. You can get SFH in fair condition and with a fair size in these areas.