st. louis

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Gunnar Teltow
Investor · Austin, TX · Member since 2013 · 112 posts · 57 votes
12y

A few friends of mine and I own 30 units in North County. The economics are very strong but I agree that you either need to live in St. Louis or have a strong team that you can trust.

I just got back from St. Louis. I toured with a friend/agent and learned that there's a BIG difference between North County and North City :)

South City is a good place to invest, I heard that from several people. We're going strictly for cash flow so North County is our playground but South City is certainly nicer with more appreciation potential and less tenant headaches.

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  • Bob Hines
    Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
    12y

    I love investing here. It helps that I live here though. Be careful with who you work with, lots of people in town are looking to take an out of state investor for a ride. St. Louis City can be a different world block by block. They might give you some good comps but the 3700 block can be completely different from the 3500 block. I've signed up with every "wholesaler" I can find, about a dozen so not all of them, and whenever they have a "deal" in my area I know it's bogus so I assume their other "deals" are bogus too but I can't be certain on that. Maybe I just haven't found the true wholesalers yet.

    There are people that do Section 8 properties in North City & County (there is St. Louis City & a St. Louis County and they are separate governments) that make good money doing it but I know nothing about it. I focus on South City as that is where I lived for 10 years and I know which blocks are good and which to avoid.

    6Reply
  • Aaron Chapman
    Lender · Gilbert, AZ · Member since 2014 · 26 posts · 15 votes
    12y

    I have completed financing for dozens of investors in this market. So far everyone of my clients have been extremely happy with it. Going along with what Bob has said the "Wholesaler Deal" is something you would have to do some due diligence to verify. The real key element here is like every market. Does it cashflow and does the property manager do their job. There are of course many other elements that you will consider, however those two are the major ones I hear the most about.

    3Reply
  • Gunnar Teltow
    Investor · Austin, TX · Member since 2013 · 112 posts · 57 votes
    12y

    A few friends of mine and I own 30 units in North County. The economics are very strong but I agree that you either need to live in St. Louis or have a strong team that you can trust.

    I just got back from St. Louis. I toured with a friend/agent and learned that there's a BIG difference between North County and North City :)

    South City is a good place to invest, I heard that from several people. We're going strictly for cash flow so North County is our playground but South City is certainly nicer with more appreciation potential and less tenant headaches.

    8Reply
  • Account Closed
    Investor · Saint Louis, MO · Member since 2012 · 46 posts · 19 votes
    12y

    @Gunnar Teltow I invest in St. Louis, south city specifically (Tower Grove Area more specifically), and I would agree with your summary.

    @Michael Roberts I don't have any property manager recommendations because I manage my own properties. St. Louis is a really good market for multi-family investing. Good cash flow, stable neighborhoods, and a booming central corridor.

    If you're interested in looking at pictures and getting a feel for what the different neighborhoods are like:

    http://nextstl.com/2011/01/groth-guides-to-the-neighborhoods-of-the-city-of-st-louis/

    5Reply
  • Bob Hines
    Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
    12y

    @Gunnar Teltow Are you guys doing Section 8 North County rentals? I've heard of people doing that and doing really well but I don't know much about the area so I've stuck with what I know. The housing prices definitely make it seem like it would be a great thing to do.

    0Reply
  • Gunnar Teltow
    Investor · Austin, TX · Member since 2013 · 112 posts · 57 votes
    12y

    @Bob Hines yes that's exactly right. Most tenants in North County seem to qualify for at least partial Section 8. My favorite units to buy are already rented to a tenant with 100% Section 8.

    0Reply
  • Michael Roberts
    OP
    Centreville, MD · Member since 2014 · 26 posts · 1 vote
    12y

    Thanks for the replies so far....

    So north CITY is an area to stay away from?

    I see many opportunities for homes in North COUNTY.

    Between the 2 which is the worse area?

    0Reply
  • Gunnar Teltow
    Investor · Austin, TX · Member since 2013 · 112 posts · 57 votes
    12y

    North City is worse by far. On par with East St. Louis.

    2Reply
  • Matt Booth
    Real Estate Investor · OFallon, MO · Member since 2012 · 4 posts · 1 vote
    12y

    Yes, probably best to stay away from North City.  Most investors I know in town do so when the time comes to sell you will have a very, very small pool of buyers.  There is currently a big push by a wealthy developer to redo a pretty good section of N. City but that will most likely take years and the crime reports nightly suggest this area is still suffering from gangs, murders and other bad things.

    North County is an excellent Sect. 8 area and I have been involved quite a bit up there.

    South City has good areas and bad.  Cash flow is easily attainable in most areas of the city and county.

    Hope that helps!

    Matt

    Go Realty Company

    0Reply
  • Peter MacKercherBusiness Member
    Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
    11y

    I got asked this question so i thought i would post my reply. 


    "Can you give me a little bit of information about the St. Louis, MO market as well as some credible sources to back it up as a good market to buy and hold properties?"

    I love investing in St Louis. I'm will admit that i'm a little biased because I live here and invest here. Be careful with who you work with, lots of people in town are looking to take an out of state investor for a ride. St. Louis City can be a different world block by block. So go with a realtor that you trust . I would stay out of noth st louis city its a different world up there on par with East St Louis the rate of returns look sexy but they're hard to achieve with high turn over. I tryed North St Louis City and crash and burned. North county can be good but I prefer south st louis where you can get good returns and rent to good people. I have a management company but we are only taking clients that have property in South St Louis. Typical construction of south city is brick about 3 layer deep with hard wood floors these house were built to last. Most have flat roof but that nothing to shy away from. In the county it can range from brick to stick built with siding with regular pitched roofs. The rental market is very strong and one of the few places that you can buy a home have a mortgage and still make money.

    http://www.huffingtonpost.com/2014/03/21/st-louis-reasons-to-love_n_4993763.html
    http://www.laweekly.com/informer/2013/10/19/10-reasons-why-st-louis-is-actually-great-and-were-total-assholes
    http://www.bizjournals.com/stlouis/blog/2012/03/st-louis-among-top-cities-for-real.html?page=all
    http://news.stlpublicradio.org/post/what-s-outlook-st-louis-real-estate-market
    [email protected]
    1Reply
  • Alex Tillman
    Investor · O Fallon, MO · Member since 2016 · 71 posts · 18 votes
    10y

    I would suggest RED management and Matt Kammeier. They do a great job with everything that I've seen. I refer almost all of my investor buyers to Matt and his team.

    1Reply
  • Danyal L.
    Orlando Fl · Member since 2016 · 14 posts · 9 votes
    9y

    WHat is considered "North City"? I am confused. There is North County and North City ?

    1Reply
  • Brandon Heimsoth
    Investor · Maryland Heights, MO · Member since 2016 · 55 posts · 36 votes
    9y
    North City = North St Louis City. North county consists of many municipalities northwest of the city of St Louis. The further west you go, the better for the most part Florissant is nice. I lived there but left because my subdivision turned into a rental haven. There are still a lot of foreclosures there. My former house that I sold for $125k has been foreclosed on twice, recently for $50k. It was a nice home--all brick, finished basement. Schools are ok in general, not great but not bad. Riverview and Normandy are trying to get accreditation back. Other nice areas are Hazelwood, Bridgeton. Ferguson is actually pretty nice but if you watch the news you've seen some of the socioeconomic problems north county is having. Just my 2 cents
    3Reply
  • Astrid Dymond
    Landlord · Saint Louis, MO · Member since 2016 · 29 posts · 13 votes
    9y

    For Property Management, check out Meramec Valley Properties, give Mark Westlock a call. He is very professional, I think you would be happy to have him manage your property. 

    2Reply
  • Chad McIver
    Appraiser · St. Charles, MO · Member since 2010 · 63 posts · 21 votes
    9y

    I have a few contacts I can send over for referrals, shoot me a PM.

    St. Louis is great for those that are looking for rental properties that cash flow well.  As other's have stated, north county, south city, and parts of st. Charles have great opportunities.

    4Reply
  • Jonathan G.
    Investor · Denver, CO · Member since 2009 · 17 posts · 6 votes
    8y

    How much rent could you get for a Section 8 cheap rental in St. Louis?

    0Reply
  • Frankie Woods
    Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    8y

    @Jonathan G. It really depends on what you mean by cheap, the type of property, and it's location.  A four family in South City for 75k can net you 1600 -1900 per month.  30k houses in n. county can get you 600 to 800 per month.

    0Reply
  • Colin Nelson
    St. Louis, MO · Member since 2017 · 6 posts · 1 vote
    8y

    I'll know for a two bedroom, 1 bath and 3 bed, 3 bath within the next month or so  @Jonathan G. When I bought this building in 2012 I was getting $860 for the 3 bed 3 bath with a section 8 tenant- $530 from section 8, $330 from them. I've gotten rid of that problem tenant and I'm preparing to place a new tenant. I own in a not so good area in South City as far as crime statically some residential developments are happening around me. My building is a 3 family. Previously got 6, 6 and 860. I've gotten rid of all my tenants, plan to cheaply remodel and buy new appliances and hopefully my numbers end somewhere around $750, $750, and $1200. $750 for 2 bed 1 bath. $1200 for 3 bed 3 bath. This way I can possibly get a good section 8 tenant (I'll screen, I unfortunately inherited a problem tenant initially) that will want to stay in my building because its the best around for their market, and they can pay me above what section 8 offers by a few 100 bucks (as long as sec 8's aware, this is fine) .... Thats my plan right now. I should have 1 apartment ready to schedule for a section 8 inspection and all by maybe feb 15th. I'll keep you updated.

    I think there is a lot of opportunity in St. Louis. As others stated, you just have to know the market. I'm from here. I'll give it a shot if the returns are right.

    Great feedback everybody.

    1Reply
  • Account Closed
    Specialist · Saint Louis · Member since 2016 · 93 posts · 28 votes
    8y
    Great market. I’ve been wholesaling properties here since 2013.
    0Reply
  • Susan Armstrong Fisher
    Austin, TX · Member since 2018 · 16 posts · 3 votes
    8y

    I'm beginning to look a little in Saint Louis also.  This link that was posted above, http://nextstl.com/2011/01/groth-guides-to-the-neighborhoods-of-the-city-of-st-louis/, looks to be dated 2011, 7 years ago.  Are these descriptions still accurate?  I'm currently looking at a property in the Hamilton Heights/West End area, and wondering specifically about that area.  

    0Reply
  • David OunanianBusiness Member
    Real Estate Broker · St. Louis, MO · Member since 2017 · 380 posts · 195 votes
    8y

    Hi @Susan Armstrong Fisher I'm a hometown fan but there are some good people in this city that are turning things around.  I just heard the last President of SLAR (Stl Assoc Realtors) say that north of Delmar was the best investment in the country.

    CASHFLOW NATION535 Reviews
    WebsiteView Page
    2Reply
  • Susan Armstrong Fisher
    Austin, TX · Member since 2018 · 16 posts · 3 votes
    8y

    Good to know @David Ounanian!

    1Reply
  • Milo Jocson
    Rental Property Investor · Redwood City, CA · Member since 2018 · 20 posts · 4 votes
    8y
    Anyone have any input on the 63114 area of St Louis for single family rentals ?
    0Reply
  • Nicholas Duncan
    Investor · Lawrenceville, GA · Member since 2015 · 16 posts · 15 votes
    7y

    @Katrina S. I'm interested in investing in the St. Louis area as well. How can I get access to the properties that you have available in that area?

    0Reply
  • Andrew Pappas
    Investor · Trumbull, CT · Member since 2017 · 59 posts · 9 votes
    7y
    Nicholas, I’ve invested in St Louis for a few years. Cash flow is definitely good, and I just bought a 4 family in university City. I’m currently selling my duplex in south city to trade up into a bigger property, and it is a relatively inexpensive way to get decent cash flow. Just pay attention to the area. PM me if you want to discuss further.
    1Reply
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