Househack Property Criteria in Saint Louis

[Ralph Noyes]

Hi everyone,

Are there any local (STL) investors who're familiar with the Tower Grove South/East, Shaw, Fox Park, Mckinley Heights, Benton Park/Benton Park West neighborhoods who might be able to offer some advice on property numbers criteria for a 2-4 unit house hack? i.e. what you would consider to be a good deal for the area?

For the last 3 weeks I've been pouring over Redfin and Realtor and going to look at places in person with my realtor and I just don't see many places where "the numbers work".

Right. I know that sounds ambiguous, but that's what I'd like to get some perspective on - YOUR perspective.

When I factor in 5% vacancy, 10% maintenance, 175-200 cap ex, 11% property management, 75 lawn service, 150-250 for utilities (water, sewer, garbage seem to be the norm here), plus the fact that I'm looking to get in with a 5% down payment...well, most of the calculations end up in the negative. 

Yes, I'll be living there and self-managing, mowing the lawn myself, fixing what I can, etc, but I'd like to build that into the deal. I'm sure you approve...

Yes, there are neighborhoods where the numbers are favorable on paper (Benton Park West, Gravois Park, Dutchtown), but I've walked those neighborhoods. They don't pass the 10 o'clock at night test for me and my wife. They also (usually - it's block by block) don't pass the "would I want these people as my downstairs neighbor and have to collect rent from them" test. Plus she works at Wash U and would love to be somewhere closer to the Metro. I digress...

What do you think BP? What areas have worked from a standpoint of both numbers and quality of life/safety? What can I do to get those pesky utility costs down, and maybe even have them mow their own lawn? Are my numbers criteria too conservative, too liberal? 

Thoughts? Comments? Questions?