All Forum Posts by: Account Closed

I recently took a tour of a new construction multi-family building here it St. Louis, just to see what the competition is like. During the tour, the leasing agent noted that all leases end in December, and July.

Anyone else have set lease expiration months?

It seemed like an interesting strategy, especially since they cater to college students.

Matthew Catanzariti buy a duplex and live in one unit. Or, start with a non-owner occupied duplex. There's a ton to learn and a smaller multi-family is a good teacher.

@Cory Anderson If you're being shut out by the bank (either because of the down payment or loan amount), keep looking and researching, but most importantly: keep saving.

Real estate investing is really risky and to mitigate that risk, you really need to be ready for a lot of surprises. Based on the prices you quoted, I expect that the down payment would be the least of your worries.

@Austin Collins I don't think we know enough about your particular situation to give really good advice. My initial reaction is that while paying off your student loans would change your risk profile (and maybe be a big relief!), an income producing rental property is a totally different kind of debt. As @Jean Bolger and @Account Closed pointed out -- you could do both.

What kind of property are you interested in getting into?

@Jonny C. to expand on what @Bill Gulley said, there are plenty of real estate industry jobs out there that do not involve a commission only existence. Most large commercial real estate companies have entire divisions dedicated to real estate services for large clients -- portfolio administration, transactions, facilities management, etc. You could also consider trying property management. There are plenty of ways to get involved and experienced on a salary.

@Gunnar Teltow I invest in St. Louis, south city specifically (Tower Grove Area more specifically), and I would agree with your summary.

@Michael Roberts I don't have any property manager recommendations because I manage my own properties. St. Louis is a really good market for multi-family investing. Good cash flow, stable neighborhoods, and a booming central corridor.

If you're interested in looking at pictures and getting a feel for what the different neighborhoods are like:

http://nextstl.com/2011/01/groth-guides-to-the-neighborhoods-of-the-city-of-st-louis/

Michael Williams I think St Louis is unique because of its multi-family housing stock. In the city it seems like a majority if the buildings are 2-4 units. So, plenty of selection to chose from and famous Midwest housing prices (which results in pretty good cash flow). And there is strong rental demand, especially in the central corridor. Lots of college students and young professionals.

Michael Williams right with you on the multi family angle. St Louis is a ridiculously good city for multi family investing. There are tons good properties. Welcome! Where are you looking to invest and how many units?

@Liam Goble good thought on controlling the house next door. @John Horner I'd seriously think about how good the location is. If the location is good enough and desirable enough for the tenants to ignore the negatives, then it might not be an issue. However, in my experience, even with a great location - tenants are picky and if everyone else in the neighborhood is offering what they're looking for it makes it that much harder to rent. In other words, you'll still be able to rent the place but it will take longer and you might not be able to attract as good of a tenant.

I grew up in Columbus, what are is this property in?

I manage my portfolio myself and have for the past 4 years. It doesn't take much time because I have fantastic systems in place. However, I have started to wonder if it might be worth my time to offload some of the work.

I don't think a property manager is in order yet, I only have 10 apartments. But I have started to think that a maintenance agreement with a local company might be helpful.

What is your experience with maintenance agreements?