Investing in St. Louis

14 Replies

Saint louis was once one of the greatest cities in America, at one time it had the 3rd highest population. Then after the Automobile Invasion, White Flight, and beginning of the Suburbs all around the time of post WWII there has been mass amounts of population loss and vacant properties. There are many neighborhoods which contain very nice homes which have fallen in to disrepair, Some of these neighborhoods/ areas have came back, some never went down, and some are on the rise.

Places like Lafayette Square, Never really went down because the residents cared for their neighborhoods. Places like soulard turned to blight and was then gentrified and now boasts high property values.

St. Louis has many neighborhoods which i believe to be up and coming and great areas to invest in for StLousians. Neighborhoods all along Cherokee St. In general are great. They are very old homes and the Cherokee street itself has a strong regional draw, there are many stores and businesses opening up along Cherokee street, including lots of entertainment. Neighborhoods such as Gravois Park, Marina Villa, Benton Park, and Benton Park West are ones which i believe to be good for investing in. If you drive around these neighborhoods you will see lots of activity and progress. Driving around benton park this week i saw at least 9 dumpsters in front of homes. That means at least 9 properties are being cleaned out and renovated.

Another great area in St Louis which i see as to be up and coming is Old North St Louis (ONSTL), this is the neighborhood title not the general area. Yes north stl itself is seen as crime ridden and may or may not have a large influence on outsiders thought of stl as being a dangerous place. But the neighborhood ONSTL is located on the north side, but is also up and coming, compared to other neighborhoods surrounding it has lower crime index and has a lot of investing going on. A new shopping center/pedestrian mall is going up, lots of investing in property is happening, and a new food co op has gone in. Most of the action in ONSTL is grass roots, from the ground up approach with effort mainly from the residents.

Over all these areas are on the move, and progressing. Big things are happening for STL. Please if you have any input reply and tell me what you thin.

I love investing in St Louis. I'm will admitthati'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-******** 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

St. Louis rocks!  I've been focusing on Gravois Park, but I'm looking to expand.  Thanks for sharing your appreciation for this wonderful city!

I have been looking at St. Louis property which I guess you would consider turn key.  One of the properties was in the 5000 block of Dewey Ave in 63111.  

Anyone have thoughts on that area?

Hi Jeff,

I will tell you that we own a 4-plex, all 1 bed / 1 baths in the 4500 block of Virginia Ave which has been difficult to keep rented, especially in comparison to our properties in the Cherokee / Benton Park area. 

Dewey is a few blocks away which could mean it is far different. Also, there are many factors which could account for our difficulties ... the all 1 bed mix, prop management (we just changed our PM, which was different than our other properties), and somewhat rough rehab (it was "turn-key" also.) Point is, don't count on my experience in 63111 as the norm. But since you asked...!

Thanks.

@John Hostetler thanks for the reply. That's just one property that I saw. I'm trying to find out what the good neighborhoods are in that area.
So you mentioned the Cherokee area as being a good rental area. Could you tell me more info about that the area and the kind of numbers you get?

Thanks

Jeff,

In our limited experience (2 multifamilies owned for 2 years) we like 63118 for rentals. With what I would consider sub-par management in place these two properties have returned 12% on all-in costs (CAP rate.) And that is with a 10% capital expenditures reserve in place. They are both financed, so our cash-on-cash is much higher, but since everyone will have different financing terms it's best to think in terms of CAP rates when comparing.

I believe this area is improving and we have not yet had a problem renting any of the units when a vacancy does come up. 

Good luck!

BUMP! For STL! Great city and underestimated.  Keep interest and investment high here!

Anyone know the area around Grand / Montana and grand / gasconnade? Is there some redevelopment going on along Grand there?

i like 63118 as well.   @john hostetler, what rents are you getting? 

St. Louis from a distance seems like a blue collar city.

I visited STL in 63118 at a friends house this week and was amazed by some of the for sale prices - her neighbor's house sold for $6k last year June and is being listed in July for $120-130k - crazy.

The bones of the properties are gorgeous brick buildings with great historic charm and seems like endless possibilities!    I'd like to get a hold of something in 63118 and any feedback about the area!

I like that part of the city a lot, it's one of the up and coming areas but of course, since it's St. Louis, one block can be completely different from the next. I know the area well (I used to live in that area and it's an area I've invested in), so if you'd like any help finding a property please feel free to contact me, I'd be happy to help in any capacity I can.

Hello Everyone,

I am an investor that invests everywhere. Right now I have access to 2,000 homes and multi units in St. Louis. If anyone is interested please message me. These homes and units are $10,000 each and they also come with rehab money as well. For serious buyers only. Let me know if you are interested.

Katrina 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.