After living in Columbia for almost 10 years, my family and I just moved to Cape Girardeau, MO. We've been researching REI the past couple years and and have been planning to start investing once we were settled here in Cape. Cape is actually pretty small, and we're both back and forth to Columbia almost monthly for business reasons. We know the area and we know contractors we trust. Now that we're finally settled, I'm wondering if Columbia might be a great place to invest. I'm a beginner with no investments yet. My plan is buy and hold.
Anyone having success in Como? What's working in Columbia? Are you liking college rentals, SFR, or multifamily? Thanks!
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
6y
I am investing in COMO (multi-family) and plan to live there (been between there and L.A. packing all my things).
I chose COMO over A LOT of other cities. Why? Growing economy, growing population, good taxes, low cost of living, friendly local government. I'm also open to investing in KC & St. Louis as they have larger MFs and that's what I'm interested in.
COMO is the land of duplexes. For 2-4 units it's so much easier to find a duplex. I've seen a few triplexes on the MLS and only one 4-unit.
You can reach the 1% rule fairly easily and maybe get up to 1.25% and maybe close to 1.5% if you're looking to buy a bit of a project (older property) that has some sweat equity.
Having said that, one can still buy a 1% rule duplex and cashflow hundreds per door on a 30-year mortgage. And the newer and larger units sometimes have separate water meters = not having to pay the water bill as an owner which is huge.
A lot of duplexes on the MLS are meh. It's funny because some are pieces of crap and their returns are no better than newer builds that are pretty nice.
I bought one of the largest duplexes available and it's in a fairly decent neighborhood. I was told there was some rifraff and shootings a few years ago a few blocks over but the police got rid of those fools.
I was told COMO has some trouble with their police as their hirings haven't kept up with the population growth but they're catching up.
Neighbors are nice and the neighborhood is quiet.
I'm also going to look into Jefferson City as they have had a lot of growth and the returns are (according to my realtor) better than COMO.
After living in Columbia for almost 10 years, my family and I just moved to Cape Girardeau, MO. We've been researching REI the past couple years and and have been planning to start investing once we were settled here in Cape. Cape is actually pretty small, and we're both back and forth to Columbia almost monthly for business reasons. We know the area and we know contractors we trust. Now that we're finally settled, I'm wondering if Columbia might be a great place to invest. I'm a beginner with no investments yet. My plan is buy and hold.
Anyone having success in Como? What's working in Columbia? Are you liking college rentals, SFR, or multifamily? Thanks!
No experience in your local area but a good rule of thumb, "if the numbers work, buy the property." Now it's a cliche but it resonates with every investor. What's good numbers, well that will depend on your risk tolerance and the amount of money you will make. What's your strategy? Flips or buy and hold?
Rental Property Investor · Leawood, KS · Member since 2016 · 102 posts · 104 votes
6y
@Jared Ebert I have one property (a 3br 2ba condo) in Columbia, MO. I actually purchased it as a primary residence in 2004. However, I've rented it out since I left in early 2008. It is in a HOA that doesn't allow undergrads, so most of my tenants have been young professionals. There have been been four different tenants in the last 12-13 years, but it is rented for the same amount as other properties in the community and has been vacant for less than two months in that time.
Rental Property Investor · Leawood, KS · Member since 2016 · 102 posts · 104 votes
6y
@Jared Ebert The HOA fees are certainly a consideration and does impact cash flow. Like any property though, all of the numbers have to be accounted for and if the numbers work out, they work out.
With our particular HOA, the HOA is responsible for any exterior (roof, siding, etc). We had a hail storm years ago that did significant damage, and that was covered under the HOA's insurance. Of course, HOA expenses do impact future HOA fees, but some of those large expenses are minimized as shared costs.
To be clear, I'm not advocating for HOAs. I purchased it as a primary residence, and it has worked out as an investment. You just have to ensure that you calculate the associated cost or savings that a HOA can provide when analyzing numbers just like any other investment.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
6y
I am investing in COMO (multi-family) and plan to live there (been between there and L.A. packing all my things).
I chose COMO over A LOT of other cities. Why? Growing economy, growing population, good taxes, low cost of living, friendly local government. I'm also open to investing in KC & St. Louis as they have larger MFs and that's what I'm interested in.
COMO is the land of duplexes. For 2-4 units it's so much easier to find a duplex. I've seen a few triplexes on the MLS and only one 4-unit.
You can reach the 1% rule fairly easily and maybe get up to 1.25% and maybe close to 1.5% if you're looking to buy a bit of a project (older property) that has some sweat equity.
Having said that, one can still buy a 1% rule duplex and cashflow hundreds per door on a 30-year mortgage. And the newer and larger units sometimes have separate water meters = not having to pay the water bill as an owner which is huge.
A lot of duplexes on the MLS are meh. It's funny because some are pieces of crap and their returns are no better than newer builds that are pretty nice.
I bought one of the largest duplexes available and it's in a fairly decent neighborhood. I was told there was some rifraff and shootings a few years ago a few blocks over but the police got rid of those fools.
I was told COMO has some trouble with their police as their hirings haven't kept up with the population growth but they're catching up.
Neighbors are nice and the neighborhood is quiet.
I'm also going to look into Jefferson City as they have had a lot of growth and the returns are (according to my realtor) better than COMO.
@Karl B. Wow, thanks so much for taking that time! I've really thought a lot about SFR vs larger multi family and I think duplexes are a decent middle ground for me just starting out. Seems like you've had decent experience with them. Thanks again.
Rental Property Investor · Austin · Member since 2020 · 14 posts · 4 votes
6y
@Karl B. I see a lot of duplexes in COMO which might seem to cash flow well. I was curious about how rental vacancy looks like based on your experience. I am thinking of investing there from out of state. Thanks!
@Karl B. I see a lot of duplexes in COMO which might seem to cash flow well. I was curious about how rental vacancy looks like based on your experience. I am thinking of investing there from out of state. Thanks!
Definitely get a good property manager. The duplex next to me... one of the units was vacant for MONTHS... seriously like 4-5 months which is bizarre (granted I spoke with that property manager and realized he was inept - he let the other tenant move in with a 500-something credit score and didn't evict them after the tenant's girlfriend showed up at their PM office and screamed at all the employees there; I know landlords in CoMo who fill units in mere days).
I live in the NE part of Columbia which tends to have a lot of newer 2000 and more recent builds but it isn't considered the nice part of town. Exceeding the 1% rule is doable in this market and some of the duplexes are nice in that even the water meters are separated = no landlord utilities.
Contractor · Columbia, MO · Member since 2020 · 2 posts · 2 votes
5y
Hello everyone, I hope you don't mind if I pop in here and introduce myself really quick. My name is Jon Gray and I'm looking to invest in Como the first of 2021. Any help and collaboration would be greatly appreciated
Realtor · Columbia, MO · Member since 2019 · 34 posts · 25 votes
5y
@Karl B. I looked at them at the walkthrough and saw what they went for after the fact. They sold lower than I thought they would! Still not sure I would have had any interest personally. Very odd units and too secluded.
@Karl B. I looked at them at the walkthrough and saw what they went for after the fact. They sold lower than I thought they would! Still not sure I would have had any interest personally. Very odd units and too secluded.
I didn't think they'd go that high. I was at their prior auction on Godas and the return was comparable; and the Godas property (only a duplex but almost 5000 sq.ft. and pretty nice condition-wise that rents for $3000 a month) was much nicer and the upkeep/ongoing maintenance was minimal (lawn care - small lot).
I agree - the units were weird on Alpine. I could barely fit, width-wise, up the loft steps on a few of them (I'm 6'4 225 so I'm not obese) and in the first unit I saw (Lot 2) it had the weirdest steps to the loft I had ever seen. I compared them to an elliptical at the gym - I can only wonder how many people fell off those steps.
I feel the seller did well.
Props to the person who bought the five wooded lots for around 13K (Lot 8 I believe). If he/she ends up building on them that's a great deal.
Realtor · Columbia, MO · Member since 2019 · 34 posts · 25 votes
5y
@Karl B. I definitely agree on the lots. They got a stellar deal. They were zoned pretty randomly though so that may have scared off some buyers. I believe there was RS, R-2, and G-C. Apparently they were zoned way back in the day when it was county and the city maintained it.
I spoke with the (prior to auction) owner of them and he was saying that he is getting out of residential rentals. I do not know if these where what led him to that decision or not but I felt like that was a bad sign also. Nonetheless, very interesting asset.
Hallsville, MO · Member since 2018 · 6 posts · 4 votes
5y
@Jared Ebert
Columbia mo is a very tenant friendly area in courts eyes. Can take several months to evict.
I am in rentals in the Moberly area about 15-20 rentals. Courts are landlord friendly. That is why I am there. Steady employment. Good highways. Almost never vacant rentals.
I am always willing to sell do you fact I work out of town for months at a time. I have been managing my units from other states for 7 years. Just put a excellent property manager in place. Great cash flow
Alhambra, CA · Member since 2022 · 3 posts · 1 vote
4y
@GENE SCHOLES hello I saw one of your posts registered rentals in Moberly MO would like to know if you'd be willing to share some referrals on contractors or property management In the area. Thank you so much