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All Forum Posts by: James Fowler

James Fowler has started 10 posts and replied 48 times.

Post: Investing Across The River

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19

@Nicholas Richard Ray

For single family rentals I've not heard of landlords paying for the utilities. That being said, I manage paying the utilities, and bill monthly as additional rent. As an owner in most municipalities hold owners responsible for payment issues, I like knowing it's being managed before it becomes a problem. However @George Skidis mentioned last night to me about making things like this a fee in his business operations, for certain "great" reasons that are fuzzy to me right now; something to the affect that fees come before rent in prioritizing payments. 

As far as multi, it seems most landlords offer free water/sewer/trash services. I've tried making small multi's work in numbers on the east-side, and I've had a hard time making them look good enough to pursue with all things considered...taxes especially! I have some friends trying to convince me otherwise, with their success stories in that segment of rentals however. 

Hope that helps. 

@Chris Clothier the metro east side of the river has pockets which have good returns, high renter demand, and relatively low purchase prices. Taxes are higher, but prices accommodate the difference. I'm starting to be of the opinion there's less attention there making it easier to spot deals; using neighborhoods I've targeted in STL as a comparison. I've been focused on mid-class C+, B- neighborhoods with great schooling for family rentals, or working professional rentals; targeting 900-1200 a month for rent. 

I work in STL, and live on the east side; and it's interesting the difference to me. 

What people say about STL is very true, it's segmented block by block. You could have a highly desirable area, just a couple blocks away from areas which you don't feel comfortable walking in. I think much of mid-class renter base expects to drive to anything it desires, or pay a premium to be in the certain block with it's desired amenities with walk-ability. Public transportation for mid-class working people seems to be mostly undesired, making the last point not as important IMO. A lot of families who work downtown, don't live downtown; 1/2 - 1 hour commutes is not uncommon. I think the two biggest factors for families for this regarding STL is perceived safety and school ratings. I see more working professionals being this mid-level market tenant base for downtown rentals. 

Because of the family related concerns mentioned earlier, metro-east is a quality option for this base. It is segmented by not so hard to understand like STL can be with it's pockets. Living all over the metro east during most my life may be why I think that way though! There are decent working class communities and schools, with a lot of manufacturing around Granite City, Belleville, and Wood River. There is also stable old small city towns like Collinsville, Bethalto, and Troy; both has decent schooling, with larger yards room to breath for families. Then there are other small towns which accommodate housing needs for a lot of jobs related to the Scott Air Force base: Mascutah, New Baden, O'Fallon, and even Trenton. The towns mentioned are more sought after for different reasons, but they are on the outer fringe, we're it appears to be growing outward. O'Fallon specifically is expected to grow steadily over the next few years, and has a lot of development when comparing to the rest of the metro-east. The are relative experiences on the west county outer edges of STL, but the buy-in price is much steeper per unit without the rent relatively matching that difference. Travel to jobs downtown is more inconvenient from west county, when compared to some metro-east communities. 

Hope that helps.

Great discussion about the market here in STL! I've been looking in the small multi space also, glad to see I'm not the only one who feels like the prices are inflated beyond reason.

I have only invested in the metro-east so far, having 2 SFR rentals. I was drawn to STL for the lower taxes, and the attractiveness some areas have; with a large stock of multi's available. Ultimately have been frustrated by finding nothing that make sense in purchasing.

Tim Nicholas,

Great job, very inspirational! It's amazing how updating property aesthetics  can add so much value; the pictures are proof of such.

I may have missed this, but in your numbers did you include taxes, or was that built into your note? 

Hoping continued success for you! 

Post: Where to get Subject to contracts & forms

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19

Chris,

Did you happen to find anything in your searching? 

Post: Newbie investor in Southern Illinois

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19

Wow that's awesome @Jeffery S Robinson. Congrats on the deal! I'm assuming you already have taken on the deal?


Talking with investors in church is what me got started too; BP was also huge in my chance taking commitments! I'm more local to the southwest side, but it's neat seeing another young investor out where you are located. Is the 20 unit where you reside?

Post: St. Louis: What is working for you?

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19
Originally posted by @DJ Cummins:

yes it was @James Fowler.  It is actually a 2 bed, with a bonus room  Bonus room is a small bedroom(with closet) but the washer and dryer hook up is also in that room.

 When my wife and I saw that listing coming up on FB... We couldn't help but cheer you on, the performance on that has to be amazing!

Post: St. Louis: What is working for you?

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19
Originally posted by @DJ Cummins:

@Cole Hagen,

The newest home in bethalto we bought (3 months ago)...I put some pics on a Facebook group...had about 10 people want to rent the property(for more than i expected to get).  Within a week of posting, we had tenants...never even put a sign in the yard.  Bethalto has a great school district and rents very well.

 DJ, Was this the one I think I noticed going for 950 for a 3 br?

Post: St. Louis: What is working for you?

James FowlerPosted
  • O Fallon, IL
  • Posts 48
  • Votes 19
Originally posted by @Megan Greathouse:

@George Moehlenhoff, it's definitely a hot market right now! I don't have a ton of experience yet... I just closed on my first 4-family buy and hold last week... but I quickly found that most MLS properties are priced too high for the rents to justify the purchase. I think a lot of folks see the relatively low cost of SFHs and MFHs ($150K in St. Louis vs. $400K in cities on the East or West coasts) and assume it means St. Louis is flooded with great deals. A seasoned investor might be able to make the numbers work through creative financing or really great negotiating, but I had to dig through MLS listings for a while before I found a property that would cash flow after PITI, all expenses, property management, etc. I'm thinking I may have to go off-MLS for future deals, and I am interested in fix & flip as a way to generate capital while the market is hot. I'm still building my network in the area, so I need to meet some quality wholesalers and contractors... but my understanding is that's not an easy task. Not sure if this helped at all, but best of luck!

 
Megan,

Can I ask what part of town the 4 family was located in?

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