Thoughts on Springfield Missouri
My wife and I live in Fort Worth, TX. We are looking at out-of-town investing, we have our eye on a few different markets through TX, however, I am starting my due diligence on some out-of-state cities as well. Anyone either local or familiar with Springfield MO that could shed some light?
Hi Dylan,
I’m a local investor and agent. Would be happy to connect with you and shed light on any areas of interest. Feel free to connect!
Hey Dylan, I live and invest in Springfield, MO. Springfield's a great place to invest in. The population's growing and in 2020, the number of renters surpassed the number of homeowners in the city. Last I saw, we were the only city in MO with more renters than homeowners. There seem to be a lot of people moving here from the west coast. The population has grown each year since the 50s. The city is expanding south. If you talk to some of the locals, you'll hear this stigma about the north side, but we've had a lot of good luck with the north and central parts of Springfield. You just have to be careful with the neighborhoods that you pick. Like any city, there are some neighborhoods that are trending in the wrong direction and you would want to avoid (drugs, crime etc), but there are also a lot trending in the right direction. A lot of pockets have turned around from investors flipping neighborhoods.
There is a supply shortage still, so like everywhere else, prices are really high right now. My wife and I focus on small multi-family and the market has been extremely competitive. We were constantly getting outbid by all cash offers, over asking price, that waived any inspection. All of the multi-family properties that list on the MLS for a decent price are usually gone within 24 hours. A friend of mine has a large flipping business in Springfield, but he's had to shift his business strategy for now because single family homes are in the same position. Good deals are still out there, but we've had to start focusing off-market to get them.
With all of that being said, I'm a big advocate for investing in Springfield. It's just more difficult right now than in the past. Hope that helps.
@Dylan Whitcher Hi Dylan! I also live, invest, and sell real estate in Springfield. It’s a very solid market but I definitely agree with Matthew that there are certain pockets within the city that you would probably want to avoid. It’s sad because some of the most beautiful and unique homes in Springfield are also in the areas with the highest crime. I hope we can turn things around but it seems to be an uphill battle. That said, I have investor friends who make a great living investing in the rougher parts of town. You just have to decide if you’re willing to deal with the headaches that come with that.
I am local here! Have scaled a team and know the ins and outs of our market. What were you wanting to know about the market here?
I agree with what @Michelle Herschend and @Matthew Cope has said as well. I heavily invest on the North side which is considered high crime and run down.
Also, if you are in the area I run the Local Pint's N Properties meetup at a brewery. It meets 1st and 3rd Sundays of each month at 4x4 Brewing. Alot of new and experienced investors in the area meet up and share info. I think there's been 3 or so deals passed around i've seen in the last year as well.
@Chase Mills Thank you! I am planning a trip there sometime soon to explore. I will reach out for coffee as it gets closer.
@Matthew Cope Thanks for the info!
Thanks, @Michelle Herschend! One of my mentors has had really good success In some of the harder neighborhoods. I am not against venturing in there, however, even he agrees that there are limits to what is reasonable. That is part of the reason I am looking for advice here before venturing the MO and putting boots on the ground.
@Dylan Whitcher as a female investor I’m a bit pickier on location because I don’t want to buy a property where I don’t feel safe going over there to work by myself or meet with tenants. However, I don’t think there are any parts of town where I don’t feel safe driving through. The majority of our crime issues are drug-related or domestic. You might hear about some local “gangs” but there aren’t any war zones here. Just some parts of town where poverty, drug use, and theft have taken hold.
@Hugh Carnaha I just watched your W2 to Millionaire video, great stuff! I am just trying to learn about the environment there. Any growth opportunities, and making the core 4 connections there. I have two mentors who are cash-heavy and have given me the green light. I want to explore other cities outside of TX due to the lower prices available. I will for sure plan my trip to Springfield on a weekend you are hosting Pint's N Properties.
@Michelle Herschend I totally understand that. Great info, thank you!
@Hugh Carnaha, Pint's N Properties... That's such a great idea and 4x4's a great brewery. I can't wait for them to open up their second location because it's really close to my house.
@Michelle Herschend hit the nail on the head about drug abuse being one of the largest problems here. We're dealing with that currently close to one of our properties.
When you're in town @Dylan Whitcher, I definitely recommend Architect Coffee Co. It's usually packed, but they have some of the best coffee around.
@Matthew Cope Thank you!