Sell Paid off Florida Rental SFR and buy 2 in St. Louis?

5 Replies

So my financial advisor wants me to sell my Florida rental house and buy 2 in St Louis.  Should I?

Florida SFR - Worth about $75-80k - no mortgage

Expenses - 4256/yr or 355/mo plus maintenance and CapEx

Prop tax - $1800/yr

Insurance - $1400/yr

Prop. mgmt. - $1056/yr

Rent is $810/mo

My net is maybe $250-300/mo

I think there is good appreciation potential in that area of FL over the next few years.

So St. Louis:

Advisor says he can get deals with 10-12 Cap  with 25% with Cash on Cash return of 18-20% in the $100k range.

$833/mo all cash or  $375/mo 25k down if I did that right.

That sounds good, but is that realistic in St. Louis (i don't know the market)?

So I might be able to double my cash flow, but at what cost and risk?

Any thoughts about the St. Louis market? These are rehabs of early 1900's houses.

Thanks for any input.


Jeff I grew up  in raised in St. Louis. We have a very interesting market. You will have 300k homes a block away from 5k homes. If you could provide more details on the area he is talking about I could give you a better answer. Feel free to pm me. 

@Ryan D. Thanks! I expect to get some information on that today and I will let you know.


@Jeff T.  

Not a problem. I can tell you what areas I like/don't. When you get down to particular properties as well I can give you my assessment on the deal itself. Wish I lived in Cali or FL myself. Sick of the cold weather. 

If you want more cash flow then st Louis is a great place. A person can easily find houses at 50k or less in working class neighborhoods. Talk to a st Louis property manager and he will tell you the areas to stay away from. Those are the 10k homes in north st Louis city. Someone brought me a rehabbed 4plex in south st Louis for 110k that was rented for 2000 per month.

It does seem like you can get good cashflow, but there are some areas to stay away from.

It's similar where I own in Florida. I know the area pretty well.  I called my agent about a cheap duplex I saw in what I thought was a sketchy area and he said "You'll get shot going over there, I would take that if you gave it to me". So needless to say I passed on that one.

At any rate, I will need to make sure I understand the area I get into in St. Louis. I think it has potential when the Aerospace industry there picks up again. It's cyclical just like real estate.

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