I was just browsing though some multifamily in St Louis MO.
Saw this one: 1287 Amherst Pl,Saint Louis, MO63112
12 units for 402K, rent around 700/m each.
Sounds like a potential deal. But obviously I don't know anything more about that place
Its in the market for almost 2 years. Seems like many updates were done past few years.
I'm a newbie, someone wants to give some insight as to why this one is not picked up quickly?
There are several possible reasons:
1. It’s a package of 12 condos in a condo complex so, you would need special financing or to pay cash.
2. Each condo has a $160/mo Association Fee which will affect net income.
3. It is in an area of town which is known for not being “the best area” (north of Delmar and east of Skinker).
All of those things do not ruin the deal, it just makes it a bit more difficult to move on it.
I see a pro in the fact that they are condos as you could sell them off individually over time (at a higher price than purchase) and basically get 2-3 for nothing eventually. If you paid cash, you could even enter into a lease-option or offer short term seller financing to a buyer who might need “a leg up” and he a bit more for them...
Just brain storming...
There is soooo much more you need to know about a property to know whether it's even a potentially good deal or not. Just for the fact it's been on the market for 2 years is a red flag. The overall price of the property (for 12 units) is a red flag, and $700/month (for what size units?) is on the lower-end which presents risks. What about the neighborhood?
Without knowing more than you gave, my suspicion is this is a sketchy area, it won't attract the highest-quality tenants, and you really don't know the actual math involved. Even if the numbers work out, the sustainability of those numbers after the fact is another story based on the factors I already mentioned.
If it quacks like a duck...