St. Louis suggested areas

5 Replies

Hi St. Louis investors,

I am considering purchasing my fist buy and hold property. I need suggestions on where I can go to generate good cash flowing rentals. I am considering Ballwin, Manchester, Webster Groves, Kirkwood, and Richmond Heights. I realize I could probably get better cash flow in the city or other less prosperous areas but I feel I will find a better type of tenant in these areas. I plan to spend between $90,000 and $150,000.

Also, does anyone in St. Louis get close to the 2% rule/ is everyone at least getting 1% of the mortgage on rentals?

Thanks,

Danny

I'm a little further South in Jefferson County but I get over 1% but not quite 2% for my rentals. I think the areas you are looking at are typically better for appreciation than cash flow but they are still good areas to invest in.  I'm not saying you can't find good cash flowing properties in those areas but in my experience safe working-class neighborhoods seem to cash flow the best.

Unless you can find properties that need a lot of work it may be tough to get into Kirkwood, Webster, Richmond Heights, etc. without spending most of your budget on 1 property. Same for Ballwin and Manchester. Although nice places to live, they're more expensive as a result.

A lot of people here invest in south city. If you can get familiar with the various streets neighborhoods, there are plenty of safe areas with solid homes for relatively cheap. I know because I live here! lol Stay west of Kingshighway and you should be OK for the most part. There are a ton of blue collar neighborhoods along & immediately south of River Des Peres as well.

Originally posted by @Danny Herries :

Hi St. Louis investors,

I am considering purchasing my fist buy and hold property. I need suggestions on where I can go to generate good cash flowing rentals. I am considering Ballwin, Manchester, Webster Groves, Kirkwood, and Richmond Heights. I realize I could probably get better cash flow in the city or other less prosperous areas but I feel I will find a better type of tenant in these areas. I plan to spend between $90,000 and $150,000.

Also, does anyone in St. Louis get close to the 2% rule/ is everyone at least getting 1% of the mortgage on rentals?

Thanks,

Danny

Hi, Danny.

I would purchase in the South City area of St. Louis or the Ferguson area (yes, Ferguson... stay clear of the Duke area) and try section 8 rentals; save up income for maintenance. You can get a fixer upper for $5k and generate $650-700 in monthly rent. Eaton Properties (St. Charles) is a good management company that will take care of your section 8s. 

North county would be the place place to start you you're looking for 2%. Stay away from north city however. 

Does anyone have a list of zip codes for cities to avoid and look into for good tenants. It’s usually easier to find the zip codes first, then get more specific after

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