Homeless new investor in St. Louis

6 Replies

Hello Bigger Pockets community. I’m a new transplant to the Saint Louis area. I stay busy with my day job as a regional airline pilot based at the Lambert St. Louis Airport. Up to this point, I have been renting rooms month to month wherever I've been based. I have recently been promoted (came with the transfer to STL), and I’m looking to change strategies and use the money I saved to invest for financial independence. At this time, I’m temporarily staying at a friend’s house, and I’m actively looking to buy a duplex or multiplex to live and rent the remaining unit(s).

I am a first time investor and my goal is to start strong. Due to my occupation, I have lived in many different cities around the country over the past five years, and I’m looking for the right city to invest. I would be grateful for any information concerning the St. Louis area. The prices here look great, even with active tenants. However, there are a large number of multifamily properties listed for 100+ days, which is a concern for the exit strategy. I'm gathering as much information as possible. Thank you in advance! 

James

Welcome!  @James T.  There are so many neighborhoods to explore and choose from in St. Louis!

http://stlouispatina.com/south-st-louis/

The above my favorite blogger walking through the neighbor hoods and photographing the different kinds of brick buildings. It is a great overview.

First off, do you admire the old brick homes of St. Louis city? I do. There are plenty duplexes on the market and young people who want to rent them.  If you can update an older building, there are plenty to choose from.  Or, do you like more upscale neighborhood like Clayton? Or student oriented neighborhood of University City?  Secondly,  spend your weekends going to open houses of all the neighborhoods. Who is you ideal customer (tenant) and where would they want to live?

Thirdly, join one of the many investment clubs and meet people.  Investors love talking about their strategies.  Develop your own strategy.  If you live in one unit and rent the other, the banks will be very agreeable.

When you narrowed down your neighborhood, find an agent who is also an investor and learn the local habits of buyers and sellers.   Plenty to learn on this web site too.

@James T.

Welcome to the site.

An owner occupied duplex is a great way to kill two birds with one stone and take advantage of great financing terms.

Originally posted by @Kathy Henley :

First off, do you admire the old brick homes of St. Louis city? I do. There are plenty duplexes on the market and young people who want to rent them.  If you can update an older building, there are plenty to choose from.  Or, do you like more upscale neighborhood like Clayton? Or student oriented neighborhood of University City?  Secondly,  spend your weekends going to open houses of all the neighborhoods. Who is you ideal customer (tenant) and where would they want to live?

 Thanks for the post Kathy. I like the old brick homes of St. Louis. The prices are great and the brick exterior is lower maintenance and durable. The downside is typically, location. I haven’t seen many of those old brick homes near the airport where I work. I personally need a multiplex unit near the airport or with quick access via the Metrolink Red Line. My focus for the first property is finding a turnkey to live in one unit and rent the other(s) to fellow pilots or airport employees. Neighborhood recommendations are always welcome. I’m learning more every day spending time on Biggerpockets.

Welcome to the site @James T. !  I prefer South City: South of I-64 and west of Grand.  Tower Grove is a great area with fairly cheap multi-family properties.  63118 offers a lot of multi-family, but the area can change drastically street by street.  Wishing you the best of luck!

@James T.

Richmond Heights would be a good area to consider. It has a MetroLink stop, it's a good area and will have a decent number of multi-families. It's very close to Washington University, so you might get some students or possibility teachers. It will be pricier than South City, but it has easy access to the airport (I-170 and the MetroLink) and the rest of the city. This area should attract a mid to high-end tenant which would make landlording easier while you're away should you self-manage.

Maryland Heights is another area worth checking out. It's closer to the airport but doesn't have the MetroLink stop. Finding a multi-family there will be a bit fewer in this area. It's an upcoming area, too.

I'd be happy to help you if you have any other questions, feel free to contact me if you do.

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