I often see people posting about St. Louis as a great place to buy inexpensive property with potentially high returns. The flip side that locals (like myself) usually bring up is that certain areas of St. Louis are dangerous, and you need to spend time in the area and on the street before you invest.
That said, there are certainly pockets that are turning around and showing lots of promise. This article shares some bright spots in an area of south St. Louis city where I bought a property earlier this year:
The article points out some community activities that are likely helping... and I like to think that the number of investors who have been coming in to rehab properties and acting as responsible landlords is doing a ton for the community as well. What are your thoughts, St. Louis investors? What areas are going to see continued improvement in 2018, and what will help drive that?
I think that's great. And responsible landlords are a big reason for the improvement as well. Together with the 4 mentioned neighborhoods I think pockets of Bevo and Carondalet have been getting better. But we'll have to wait and see.
Good morning Megan. Thank you for the post. I work with many out of state investors in the St. Louis market over the years and I have seen a serious spike recently. St. Louis is an awesome market for investors because of the diversity in the market, inventory and the ability to utilize multiple investing strategies with opportunities for success within one market. Go ST. LOUIS!!!
It's not been long for me here in Dutchtown but there certainly are nicer pockets as I drive around. That said there are also some boarded up properties but they're just asking to be rehabbed. Figuring out why they haven't is something I don't have the resources for currently but even with those there are nice houses around. People seem comfortable here. Bevo Mill is right near and it's a good neighborhood from my estimation so hopefully the tide continues to rise.
I may be dreaming a little but I'm aggressively saving now to try and likely acquire another property here in Dutchtown or near by due to the good impression so far and the numbers seem to work for me so far as well. Hopefully the neighborhood keeps on the up and up to reduce future headache basically.
Is there neighborhoods that you wouldn't touch? Or ones that you would caution before investing in? I would have to assume North County would be on the list as I've heard much caution about that area.
@Nicholas Richard Ray , great to hear you're seeing good things happening in your area! I actually have avoided Dutchtown so far, but I know a couple others who invest there as well. Location is such a personal decision, based on the types of properties and tenants you want, your level of risk tolerance... it varies so much!
I definitely don't feel prepared to take on anything in North City. I think there are areas of North County that are solid rental areas (I believe I've heard good things about Hazelwood?) but I'd have to do a lot of research to really determine where in North County I'd be comfortable investing. However, I have enough friends/family who live in North County that I know there is probably opportunity in some areas up there.
I think there's a lot of opportunity throughout South City and South County as well, but again, it can vary a lot by neighborhood and street. So other than not going into North City, I don't know if there are any areas of St. Louis I wouldn't at least consider or take time to learn more about.
:) I love St. Louis, it's a great market, but as great as it is, it can be a minefield. A minefield that requires good skills and a lay of the land to navigate. As for Dutchtown, it's a hit and miss area, some parts of it have gotten better over the past few years, some have gotten much much worse. I have hopes that I'll get in there and help clean it up over the next few years, but haven't found the right place yet. (although I do know a nice 4plex that is for sale in the nicer part of dutchtown, I just don't have the $$ for it yet, pm me if you want details.)
Bevo is where I'm at for now, and that is further along in redevelopment than Dutchtown is. If you need a local to help navigate for you, PM me, I grew up there and still have friends in the area and I'm not far from the area, especially now that I'm invested there (or will be in less than 48 hrs).
The lay of the land and the street by street knowledge is definitely one area I can improve a lot in. I think I got fairly lucky where I'm at honestly in regards to location, neighbors, feel and all else. I did some research and know someone thats actually in Bevo and asked them about the area but you never really know until you're living here. I can't wait for some consistent nice weather to get a few walks and bike rides in to see the area more personally.
My risk adverse side almost wants to just invest on the same street just because I know this place now, but we'll see how I feel when that time comes. I'd really like to get into a fourplex instead of another duplex. There don't seem to be as many around as duplexes of course but there are a few - and maybe even some BRRRR capable properties among them. Definitely excited about the outlook either way.
Congrats by the way @Donald S. on the deal! I haven't been on too consistently over the past 2 months but I do remember seeing you all over the forums preparing, congrats again!
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