Invest in St. Louis MO
I am looking to invest in St. Louis for MTR for travel nurses and other professionals. Is there any investors that have properties in St. Louis that is seeing 10-14% CoC RIO in this market? I am thinking of getting a 4plex any information is greatly appreciated.
Welcome Tom BiggerPockets, @Dennis Morris, and congratulations on doing the work!
Disclaimer: we do not do MTR.
That said, we invest in LTR in St. Louis The returns you mentioned above are the minimum we look for when buying LTRs, so I would imagine one should be able to potentially do better than that with MTR.
I know a few folks who do MTRs in STL, happy to connect you. Please do not hesitate to reach out, connect, and DM me.
Quote from @Dennis Morris:
I am looking to invest in St. Louis for MTR for travel nurses and other professionals. Is there any investors that have properties in St. Louis that is seeing 10-14% CoC RIO in this market? I am thinking of getting a 4plex any information is greatly appreciated.
Here is an example: https://www.realtor.com/reales...
Crunch the numbers to see what kind of return you'll get. Here's a guide that describes what good cash flow looks like and how to analyze a property. https://www.biggerpockets.com/...
I would like to point out "medium-term rental" is a made-up term that has no real purpose except to sell some books and websites. Rentals are either short-term (30 days or less) or long-term (more than 30 days). You can call it whatever you want, but you are looking for a long-term rental and it will be governed by long-term laws, use long-term leases, and be marketed the same way as an long-term rental.
I used to live in St. Louis, have a lot of family there, and am kicking tires on that market as well. If you're close to Barnes, you should do very well. The quality of neighborhood can turn fast street to street, so you need to know or work with someone that you absolutely trust that knows the area.
Ok I will definitely do that. Thank for the advice
@Dennis Morris I have managed my own Travel Nurse SFH and have helped clients purchase multi families specifically for the purpose of renting to Travel Nurses. My clients who recently closed on the duplex are getting very good returns, and better than LTR. Knowing the right area of our market to buy in is crucial because we can be a block by block area. Typically we are looking in sold "A and B" neighborhoods within 10-15 minutes from our hospital corridor, or have easy highway access. Your COC goals are doable. Just remember that there will be upfront expenses with furnishing the property as well. Not just your down payment. I recommend smaller 1-2 bed units which are cheaper to furnish, and fit the TN lifestyle. They don't generally need larger apartments unless they are traveling with their family.
Thanks for that information I am currently looking for those type of properties right now
Quote from @Nathan Murith:
Welcome Tom BiggerPockets, @Dennis Morris, and congratulations on doing the work!
Disclaimer: we do not do MTR.
That said, we invest in LTR in St. Louis The returns you mentioned above are the minimum we look for when buying LTRs, so I would imagine one should be able to potentially do better than that with MTR.
I know a few folks who do MTRs in STL, happy to connect you. Please do not hesitate to reach out, connect, and DM me.
Hello Nathan. Id like to know how you go about with your LTR investing. I've been looking into that as well and was wondering if you can be a guiding eye for me?
@Brandon Gamblin happy to help!
Please do not hesitate to reach out, connect, and DM me so we can continue the conversation.
Looking forward to helping!
Quote from @Brian Miller:
@Dennis Morris I have managed my own Travel Nurse SFH and have helped clients purchase multi families specifically for the purpose of renting to Travel Nurses. My clients who recently closed on the duplex are getting very good returns, and better than LTR. Knowing the right area of our market to buy in is crucial because we can be a block by block area. Typically we are looking in sold "A and B" neighborhoods within 10-15 minutes from our hospital corridor, or have easy highway access. Your COC goals are doable. Just remember that there will be upfront expenses with furnishing the property as well. Not just your down payment. I recommend smaller 1-2 bed units which are cheaper to furnish, and fit the TN lifestyle. They don't generally need larger apartments unless they are traveling with their family.
How can you tell what is a Class A, B or C neighborhood?
@Osamede Edokpolo it's an art not a science, but this blog post has a good overview of the characteristics of Class A, B, C and D.
@Osamede Edokpolo, I generally look at the areas amenities, schools, crime, and the general upkeep or curb appeal of the neighborhoods. Proximity to parks, popular hot spots, and businesses/employers is important as well. Especially if you're looking to do Air BnB. If you're looking to house travel nurses, then owning a property close to a hospital is crucial.
Quote from @Brian Miller:
@Dennis Morris I have managed my own Travel Nurse SFH and have helped clients purchase multi families specifically for the purpose of renting to Travel Nurses. My clients who recently closed on the duplex are getting very good returns, and better than LTR. Knowing the right area of our market to buy in is crucial because we can be a block by block area. Typically we are looking in sold "A and B" neighborhoods within 10-15 minutes from our hospital corridor, or have easy highway access. Your COC goals are doable. Just remember that there will be upfront expenses with furnishing the property as well. Not just your down payment. I recommend smaller 1-2 bed units which are cheaper to furnish, and fit the TN lifestyle. They don't generally need larger apartments unless they are traveling with their family.
Hi Brian,
Thank you for sharing your insights!! This is great to know. However, I do notice that there are many available properties in St Louis on Finished Finder. Is the competition in St Louis MTR very fierce? How do you stand out from the competition there? Thanks!
Best,
Jin
Hey @Jin Zhang,
I did a search of STL properties on Furnished Finder and agree that there are plenty available. When looking at the available properties closer, I did notice a few trends. Several properties were in areas that I don't even recommend buying for LTR because of crime. TN's are class A-B tenants, who do not want to live in "D" neighborhoods. In the nicer areas, the available properties were priced really high IMO. Other available properties were 3-4 beds. In my experience, TN's travel in ones and two's, so having 3-4 bedrooms isn't necessary. So to stick out, I'd recommend buying in the buy box I previously described. Keep your pricing competitive, and have the property staged well. Hope this helps and let me know if you want to discuss further!
@Brian Miller do you mind sharing your preferred site for finding travel nurses? I have a property in Washington, MO I was going to list on furnished finder, but a colleague who has one in Kirkwood said she didn't have much luck with Furnished Finder. I am also trying to find out what the demand is in Washington, I have an email out to Mercy's HR department, but I don't expect to hear back. Any advise on finding this out? Thanks so much!
@Marci DeArriba Furnished Finder is pretty popular, but there is also travelnursehousing.com. You could also go more generic with advertising for the corporate housing as well. There are a bunch of websites for that, and it opens you up to more tenants looking for the basically same thing. We found a few FB groups for TN's too and found tenants that way. Best of luck!