Saint Louis Missouri Investing
Tomball, TX · Member since 2015 · 1 post · 0 votes
Saint Louis Missouri Investing
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Originally posted by @Mark Debeyssey:
Good afternoon everyone!
I was recently informed by a colleague that I should consider investing in single family and/or multifamily homes (as Rentals) in Saint Louis Missouri. Given the wide range of expertise and talent that Bigger Pockets members have, I decided to post the following questions in the Forums in hopes of discerning some wisdom from fellow members:
- Is Real Estate investing in Saint Louis Missouri a good choice/safe market?
- How is the Real Estate market currently in Saint Louis Missouri in regards to inventory and price point on Single Family and Multifamily homes; is the ROI good?
- If investing in Saint Louis Missouri is a good choice/safe market, what are some zip codes one would suggest considering for either single family and/or multifamily homes?
- What is the average Rental fee one can charge given said zip codes/regions suggested above?
Best Regards,
Mark D.
Hi Mark,
That's a lot of information to convey via a forum post. I'll answer what I can, as an agent who works solely with investors, owns multiple rentals in the city, and grew up in StL.
1: St. Louis is a great market to invest in, whether it's "safe" or not kind of depends on your definition. Yes there may be a mag 9.0 earthquake sometime in the next 100 years that levels everything from Memphis to St. Louis, but hey if that happens I'll have bigger concerns.
2: Currently the market feels like established rentals are going for right around the 1% rule in the best neighborhoods, but there is a ton of opportunity in the secondary neighborhoods or when looking for fixer-uppers. I've found the ROI to be close to what our paper math thought it would be.
3: In St. Louis just going by zip code is too broad. Example: 63118 is great north of Cherokee Street, and drops off quite rapidly as you go south of Cherokee. You'll need someone to navigate this web of a city if you're not familiar with it.
4: Again see #3. 63118 north of Cherokee a 1 bedroom apartment can be 600/mo, south 450/mo. Whereas a 1 bedroom in "The Grove" can fetch north of 900/mo fully renovated.
Feel free to reach out if you'd like to discuss further.
Cheers!
4 Replies
- Real Estate Agent · St. Louis, MO · Member since 2015 · 45 posts · 12 votes7y
Hi Mark!
I'm a local agent here in St. Louis, and I have a few investors (both locally and out of state) that have found what they're looking for here in St. Louis. While I can't tell you the right/best areas to invest, I can say St. Louis offers a wide array of housing opportunities, I imagine just like anywhere else. You have varying classes of properties and with that varying returns. Feel free to shoot me a DM with more specifically what you're looking for in terms of criteria and return, and I'd be happy to show you what various areas in St. Louis can offer you :)
Originally posted by @Mark Debeyssey:
Good afternoon everyone!
I was recently informed by a colleague that I should consider investing in single family and/or multifamily homes (as Rentals) in Saint Louis Missouri. Given the wide range of expertise and talent that Bigger Pockets members have, I decided to post the following questions in the Forums in hopes of discerning some wisdom from fellow members:
- Is Real Estate investing in Saint Louis Missouri a good choice/safe market?
- How is the Real Estate market currently in Saint Louis Missouri in regards to inventory and price point on Single Family and Multifamily homes; is the ROI good?
- If investing in Saint Louis Missouri is a good choice/safe market, what are some zip codes one would suggest considering for either single family and/or multifamily homes?
- What is the average Rental fee one can charge given said zip codes/regions suggested above?
Best Regards,
Mark D.
Hi Mark,
That's a lot of information to convey via a forum post. I'll answer what I can, as an agent who works solely with investors, owns multiple rentals in the city, and grew up in StL.
1: St. Louis is a great market to invest in, whether it's "safe" or not kind of depends on your definition. Yes there may be a mag 9.0 earthquake sometime in the next 100 years that levels everything from Memphis to St. Louis, but hey if that happens I'll have bigger concerns.
2: Currently the market feels like established rentals are going for right around the 1% rule in the best neighborhoods, but there is a ton of opportunity in the secondary neighborhoods or when looking for fixer-uppers. I've found the ROI to be close to what our paper math thought it would be.
3: In St. Louis just going by zip code is too broad. Example: 63118 is great north of Cherokee Street, and drops off quite rapidly as you go south of Cherokee. You'll need someone to navigate this web of a city if you're not familiar with it.
4: Again see #3. 63118 north of Cherokee a 1 bedroom apartment can be 600/mo, south 450/mo. Whereas a 1 bedroom in "The Grove" can fetch north of 900/mo fully renovated.
Feel free to reach out if you'd like to discuss further.
Cheers!
- 7yDavid OunanianBusiness MemberReal Estate Broker · St. Louis, MO · Member since 2017 · 380 posts · 195 votes
hi @Mark Debeyssey here is some current market data on St. Louis. It's a great place to invest. I've been doing fix and flips and fix and holds in St. Louis and help others do the same.
CASHFLOW NATION535 Reviews - Rental Property Investor · Saint Louis, MO · Member since 2014 · 313 posts · 326 votes7y
Hi Mark, St. Louis has something for everyone somewhere within the metro area. The key is to understand what strategies to undertake in the different parts of the county, city, neighborhood, or even the city block that you target. Take Donald's response to heart; you really need boots on the ground knowledge for much of St. Louis, especially in the city where rents can vary from one side of the street to the other.
There's no such thing as a "safe" investment, it's all a matter of analyzing the trade-offs between risk and reward.
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