Hey BP Family.
I have family connections in Missouri, and I came across a multifamily property on S 14th in 64501. My family knows the St. Joseph area somewhat well because they work in that area, but from an investment standpoint I would love to know more about it. Anybody having luck with renting out properties in this area? Safe area to invest? Looks like properties for sale or on/off market at a cheap price, so it kind of throws up a red flag for me to an extent. I’m from Atlanta, so you won’t get anything at that price unless every house on that street is boarded up and the area is trashed.
What do you guys think? Good Area? Good and stable tenant base? Solid rent rates? Good multifamily area?
Please let me know what you guys think. I’d love to learn more!
@Myles Cardenas I actually have been looking to invest in St. Joe as well. I have a son going to college there and I am looking to do some rental property there for students. PM me if you want to chat more.
Hi Myles. I realize my response is a bit delayed. I have just recently jumped back on BP. I grew up in St. Joseph and now own 2 rental properties there. They are lower income properties. One is in what would be considered a 'marginal' or 'bad' area of town.
The area that you are looking at is actually quite distressed. I have seen multifamily 'handyman specials' in that area for as little as 7 grand. But not worth it. Many of these buildings are over 100 years old. They have not been cared for and many are abandoned. You would have to luck into a stable tenant base.
With a good property manager that is used to working in those types of areas, you may be able to do just fine. But it would be a throw of the dice. I know an ex-property manager that has worked almost exclusively with low income properties and he hates multi-family. Not because of the economics but because if the social level of the tenants are not so good (as in this area), you get LOTS of domestic problems.
St. Joseph could be good and for just a bit more money, you can have a great property. I would stay away from the area you are mentioning here unless you have someone on the ground that can manage it well.
I do wish you luck and hope to see you successful in real estate! If you have any other questions about St. Joseph, let me know. I lived there for 27 years and my parents still reside there. So I know it well.