I have been getting tons of owners looking to sell distressed properties between $5k and $12k on the high end in the 63121 and 63111 St Louis MO. I comp’d the areas and turn key go for $29k - $39k. They seem more like a B-, C class neighborhoods and I hate to say no to bulk deals.
Anyone in the area familiar with the rent performance? I suspect lots of section 8.
I searched to see what the rental inventory is looking like out there as well and it looks like they have quite a lot waiting to be rented. Anyone willing to drop some insights?
I own a duplex in 63111 I'm currently rehabbing. I'll never buy in this zip code again.
I would stay about from 63121. And in the 63111 area it depends on what area of that zip you look in. Some are good and some go really bad
@Peter Kozlowoski . Great . Is there a reason why you detest buying in this area?
I can't speak for the WHOLE zip code, but the part of 63111 where I own (Pennsylvania and Walsh) is just crappy. Crappy street people constantly walking around, drug dealers, prostitutes, and crappy neighbors who stopped working with me trying to clean it up. I wish I had done more research before I bought the property. It does seem to be improving, but I'm not holding out any hope. Since the real estate market is so hot now, I'm entertaining offers to sell it. I'd be open to it if it was $90K or so.
63111 (patch area) is a tough zip code due to its history and flood zone risk. It has a lot of history, but also lots of problems with city systems. I don't feel the need to carry personal protection, but I do keep an extra hammer in the truck cab and bed.
Owner-Residents, I found, are long term, almost multigenerational. Renters seem to be the problem as bad apples are being pushed into this area. Hopefully we can see a bit of cleanup once we get get problem people out of the units.
Up by Ivory Theater and up Virginia and north of Loughborough is more of the sweet spot, but then you get gut rehabs that won't pencil out a return better than investing the same amount in VTSAX.
I see properties being mothballed in the area closer you get to the casino on the city side.
I own a 4 unit that I lived in in 63111 on South Grand by Delor. As the other investors say its hit or miss in this area. Some blocks are nice and quiet and others have the drug users and prostitutes. Now most of the 63111 area is one of the Opportunity Zone so the hopes is eventually more investors come buy the area up to change it around...but there are some deals you just have to get it on the right block
I'm under contract to buy a duplex on S. Broadway. Would be happy to be in contact with other investors in the area to see how we can work together to improve the area.
@ken what cross street?
@Zach Stillman, between Eller St. and Fassen St.
Sending you a message.
63121 is bel nor which is a Fabolous neighborhood right across from umsl. I have a duplex there that I bought for 150k in December of 2020 and rent the first floor unit out @ $1005 and the second floor @$1100. The only thing that sucks about bel nor is that they are very strict. Homeowners are required to get inspections each year. They are making sure the property values don't drop so that is the positive side.
@Ryan Richardt why stay out of 63121? Isn't that bel nor and pasedena hills etc???? That area is really nice. I own a duplex in bel nor. It's a 7 minute walk to umsl.
@Ken I'm open to hearing your ideas. Investors of 63111 unite!
Afsheen, I own a duplex on Pennsylvania and Walsh. Which cross street is your fourplex on South Broadway?
Between Poepping and Davis. Would love to hear ur experience thus far. Let's talk sometime!
It was REAL bad last summer, but it seems to have quieted down a lot since the Feds got involved. What do you reckon?
Trying to decide between Metro-East (like Collinsville and Belleville) or St. Louis.
The properties seem to be in the 63118 area, have not done a in person site visit yet but planning on that in the near future.
@Peter Kozlowski , when you say Feds got involved what are you referring to? Sorry for my ignorance, at the front end of this learning curve but willing to put the needed time in.
The US Marshals!
Lone Wolf McQuade is cleaning house. :)
I too own a single family almost next door to Perennial Brewing, great street except one problem house. I keep trying to contact the owner to see if he would sell but I get no responses to any of my inquiries. I keep looking down there, but the older homes need a lot of work, in that neighborhood I look for the 1950 and new homes. The usually have been kept in pretty good shape and if they do need repairs they seem to be small. I bought our single family for 74K and rents for $1,000. Great tenant that has been there for years.
Maybe the area has to be something you're really into. I hope to invest there someday.
It seems to be getting better lately. Maybe more investors are being compelled to buy in the area due to the lack of inventory on the market now?
Speaking of 63121: There is a lot of variety in that zip code, super nice houses near UMSL, and some sections filled with tiny houses (<700 sf) with weird floorplans that even if treated with TLC would not be that desirable to rent out or to live in. How much work do you really want to put into a $12K house that will only be worth $50K on the high end?