Saint Louis Market thoughts?

Question

Does anyone want to give an opinion on the Saint Louis market from a flip or rental standpoint?  Saint Louis City, Saint Louis County, etc.  Just curious.

Garen Lafser · Answer

Hey Kyle,

Right now it is a wild, wild seller's market.  I am helping my sister in law try to find a house.  We have had 3 situations in the last few weeks where we were up against as many as 20 offers on day one of the listing.  With that said, its a great market for flipping if you can find a good deal on acquisition.

I also work with a lot of developers in the city, and the apartment market is fantastic.  Great cap rates, and decently low vacancies.

I think the real estate market in general is great right now.  Hard to tell how long it will last.  A little tough to find deals though.

David Dachtera · Answer

@Kyle Eckert,

In most markets, you'll want to go after "off-market" (not yet listed) properties. That's about the only way short of REOs to find many of the deals that are out there.

Bob Hines · Answer

Buy and hold is one thing, but buy and hold is different in the County vs. the City. North City is Different from South City. North County, West County and South County are vastly different from each other. Municipalities in the County are different and have their own rules than the 90+ other municipalities in the County. High end rentals are different than Section 8. Section 8 is different than market rate rent. Etc. So you have to do more homework to narrow things down than just deciding buy and hold. St. Louis is a big area and things can change from one side of the street to the other.

I started in South City when I lived there and I continue to purchase there even though I have since moved to St. Charles. I know the area and have contractors that work in the area. It's worth the drive to me instead of starting over learning new areas, vetting new contractors and learning new inspection standards even though I drive through several prime rental areas to get there.

Find some zip codes you're interested in and start following the market there. You can sign up with Zillow to get daily rental updates. If you have an agent, they can send you daily MLS updates. See how that market is working, run some numbers and see if it will work for you. If not, try another area until you find one that will meet your needs. There is every type of neighborhood to choose from.

Bob Hines · Answer

I have 13 rentals in South City and they have been going great. Rents have been rising nicely and the demand is there to find good tenants.

There are many different areas with their own rules to investing in the St. Louis area. The best way is to pick what fits you best and focus on that specialty.

Mags Henley · Answer

I manage an apartment community near Tower Grove and I've been seeing many last minute rentals because the houses prospects were renting were put up for sale. If you're wanting to stay under $200k, the Tower Grove area is a strong market and is close to many trendy neighborhoods.

Rohan J. · Answer

interested as well. following!

DJ Smith · Answer

Hey Kyle are you looking to rehab or buy and hold?

Saint Louis Market thoughts?

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