Buying out of state in St. Louis

Member since 2022 · 4 posts · 4 votes

I’m a newbie investor that has not made his first deal yet. I’m from Dallas Texas but the market is very high here right now. I have family in St. Louis and seen the homes there are very responsible. Can anyone tell me about St. Louis and what area to buy in or is it even a good market.

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Nathan Murith

Investor · San Rafael · Member since 2020 · 376 posts · 274 votes

@Christopher Barnes welcome to BiggerPockets and congratulations on doing the work!

We invest out-of-state in St. Louis, it’s been great so far. We have been doing so for a few years. We have a great team out there.

Your team is critical when investing out-of-state. Specifically, you want to make sure you consult with your team for which area to invest in. STL is very neighborhood specific and from one block to the next there can be quite the difference.

It also depends what type of real estate you want to invest in (single-family, duplex, large multi, etc).

In any case, happy to share all our successes and failures as well as tools tips tricks recommendations. If you want to chat more, please do not hesitate to reach out connect and DM me.

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Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
@Christopher Barnes welcome to BiggerPockets and congratulations on doing the work!
We invest out-of-state in St. Louis, it’s been great so far. We have been doing so for a few years. We have a great team out there.
Your team is critical when investing out-of-state. Specifically, you want to make sure you consult with your team for which area to invest in. STL is very neighborhood specific and from one block to the next there can be quite the difference.
It also depends what type of real estate you want to invest in (single-family, duplex, large multi, etc).
In any case, happy to share all our successes and failures as well as tools tips tricks recommendations. If you want to chat more, please do not hesitate to reach out connect and DM me.
4 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y
@Christopher Barnes
If you are looking for out-of-state markets, I would definitely recommend checking out Columbus OH. It's a solid hybrid market of cash flow and appreciation. Columbus has lots of job opportunities and population growth.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
4y
@Christopher Barnes
You should get in touch with local agent.
A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.
Advantages of owning out of state rental property.
1. Rental property is more affordable
2. Potential returns are greater
3. Easier to find a market to match your investment strategy
4. Minimize risk with diversification
Drawbacks to out of state rental property
1. Skipping due diligence and buying property sight unseen
2. Struggling to find quality tenants to rent your property
3. Unfamiliar with landlord-tenant rules, local laws, and customs
Read this article for detailed information https://learn.roofstock.com/bl...
Good Luck!
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Matt Guignon
Real Estate Agent · St. Louis, MO · Member since 2017 · 74 posts · 20 votes
4y
@Christopher Barnes I am a local investor here in St. Louis, born and raised. STL can be tricky if you are not familiar with each street and specific neighborhood, as it is notoriously a "block to block" city. That said, we have tremendous opportunities for cashflow investments and have seen a ton of out of state and out of country investors specifically target St. Louis for that reason. The company I work for manages properties in MO,CO,AR,AL,OK,FL,SC,GA,MS,VA,OH,MI, and TN. Regardless of the market it's crucial to have a trusted team to help support your investment goals. If you have any questions regarding STL, best areas, contractor recommendations, etc. I'd love to connect and offer any assistance I can.
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Jonathan ThomasPro Member
Member since 2020 · 10 posts · 6 votes
4y
I'll definitely be looking out for more comments on this post. St. Louis seems to have good cashflow potential. l'm looking at a deal in South city so we'll see how that goes.
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Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
@Jonathan Thomas let me know if you want to chat and connect, happy to share my experience, successes, and mistakes investing in STL.
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Christopher Barnes
OP
Member since 2022 · 4 posts · 4 votes
4y
Quote from @Matt Guignon:

@Christopher Barnes I am a local investor here in St. Louis, born and raised. STL can be tricky if you are not familiar with each street and specific neighborhood, as it is notoriously a "block to block" city. That said, we have tremendous opportunities for cashflow investments and have seen a ton of out of state and out of country investors specifically target St. Louis for that reason. The company I work for manages properties in MO,CO,AR,AL,OK,FL,SC,GA,MS,VA,OH,MI, and TN. Regardless of the market it's crucial to have a trusted team to help support your investment goals. If you have any questions regarding STL, best areas, contractor recommendations, etc. I'd love to connect and offer any assistance I can.

What can you tell me about Cahokia? I've talked to an agent out there and says she invests there says it's a rental town and good cash flow. I've looked at the houses they are very cheap and don't seem like they would appreciate

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Matt Guignon
Real Estate Agent · St. Louis, MO · Member since 2017 · 74 posts · 20 votes
4y
@Christopher Barnes Most parts of Cahokia are going to be C/C- properties. The area is definitely lower class and the median home value is right around $50k. You can find some nice cashflowing deals if you do your due diligence. However, Cahokia is located in Illinois where landlord tenant law and taxes are much different than over on the Missouri side. In terms of the St. Louis market which encompasses a bi-state metro (MO+IL) the majority of investors tend to stick to the Missouri side where taxes are lower, evictions are easier, and property values higher. There are many great towns, cities, and municipalities in the metro area to invest. For me, personally, Cahokia would be pretty far down on my list of best places to invest in STL. I hope this provides some insight. Let's connect have you have any other questions.
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Christopher Barnes
OP
Member since 2022 · 4 posts · 4 votes
4y
Quote from @Matt Guignon:

@Christopher Barnes Most parts of Cahokia are going to be C/C- properties. The area is definitely lower class and the median home value is right around $50k. You can find some nice cashflowing deals if you do your due diligence. However, Cahokia is located in Illinois where landlord tenant law and taxes are much different than over on the Missouri side. In terms of the St. Louis market which encompasses a bi-state metro (MO+IL) the majority of investors tend to stick to the Missouri side where taxes are lower, evictions are easier, and property values higher. There are many great towns, cities, and municipalities in the metro area to invest. For me, personally, Cahokia would be pretty far down on my list of best places to invest in STL. I hope this provides some insight. Let's connect have you have any other questions.

Thanks Matt for your input. I was kind of thinking the same thing but wasn't sure. So would Belleville be about the same type of area?
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Lynne HartBusiness Member
Real Estate Agent · Saint Louis, MO · Member since 2015 · 115 posts · 49 votes
4y
@Jonathan Thomas Welcome and congratulations on already getting started. You're taking the right steps and getting some great advice here! I am an investor and realtor in St. Louis MO, and my client base as a realtor is 100% investors, primarily multifamily. St. Louis is a fantastic place to invest, with a low barrier to entry and strong rental audience. There's something for every type of investor! I'd be happy to jump on a phone conversation this week and chat about anything you find helpful. Just let me know when works for you!
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Matt Guignon
Real Estate Agent · St. Louis, MO · Member since 2017 · 74 posts · 20 votes
4y
@Christopher Barnes Belleville is a level up from Cahokia in my opinion. If, however you're not completely set on investing in Illinois, I'd strongly suggest checking out some of the Missouri side markets. I'd be happy to be resource for any questions you have or services you may need as you get up and running here in STL.
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Jamen Armendariz
Member since 2018 · 15 posts · 1 vote
4y
@Matt Guignon Hi I recently closed on a couple of single family properties in St Louis using a "turn key" provider. I'm finding a couple of other potential deals but I would like to find a couple of General contractors that can be recommended that work that area. Zip code is 63118. I need a contractor who is willing to perhaps shoot some video clips and or do a live walk through and provide estimates/scope of work. Willing to compensate for it of course. Would like to attempt to do a remote fix and flip or fix and hold but need to start assembling a team and some boots on the ground. Do you have any contacts for contractors?
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Aj Parikh
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
I am not that familiar with St. Louis but the turnkey companies I worked with have shop in those areas so they can help you find something that cash flows. Let me know if you want to connect.
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River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
4y
Hi Christopher-
Awesome that you're looking into your first investment! I have seen a lot of success in St. Louis in the past, but it really depends on who you are working with, the neighborhood, and the type of propery.
Would love to connect!
[email protected]
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