Where do investors buy in St Louis, MO ?

Question

Hi Team Bigger Pockets. I've been investing in Indiana, and want to expand into the Missouri region for my portfolio. I wanted to get an idea of what neighborhoods/suburbs/zip codes of St Louis that investors are buying in.

Alicia Sierra · Answer

My cash flow buyers are in the 'off brand' locations in south city (C Class), the investment/development adjacent areas of North City (d class) and parts of North County.

My A & B class buyers are in Benton Park, Benton Park west off Cherokee, Christy Park, Princeton Heights, Southwest Gardens, and North & South Hampton neighborhoods.

The market is definitely tough - we scout for inventory, cooperate with wholesalers and watch the MLS like a hawk daily (yes, good deals exist when listing agents are market ignorant).  I also notice that many Property Managers are behind the times with rental rates, so that is something to keep in mind - I regularly shock with the rates that I am personally getting, along with some of my clients.  Many are 20 years behind on rent rates.

Matt Alvino · Answer

Hey Lewis. I'm in StL City and looking in C-ish neighborhoods right now due to how crazy prices have gotten. Places like Bevo, Dutchtown, Marine Villa, Mount Pleasant, Carondelet, and Patch. However, some of these areas can be very block to block so I find myself driving properties to ensure there is not more than a couple vacant properties in a 2 block radius.

If you are more of an upscale investor, Shaw is where everyone seems to be. St. Louis Hills, Southampton, and Northampton are the next tier down, but the prices versus rents simply don't make sense based on my numbers.

Kyle Eckert · Answer

@Lewis Fisk

@Matt Alvino nailed it pretty well with the description.  I'd like to add Benton Park, Benton Park West, Tower Grove East, and Tower Grove South into the middle ground for investing.  Much less block to block than Dutchtown, but they still can have a vacant building and a new build on the same street.  That combination of high ARV rehabs with crappy buildings nearby are neighborhoods I am bullish on right now, as that is the catalyst needed for an overall improvement in the neighborhood.

I'd love to connect, feel free to reach out for a more in-depth conversation.

Alicia Sierra · Answer

Vacancy rates for an upgraded apartment should be no higher than 8% - I've experienced zero percent vacancy (through one turn )  in one of my rentals in Benton Park West.

Hsiang Lo · Answer

Rental rates as in vacancy rates? what should vacancy rates be in benton park area?

Nathan Murith · Answer

@Lewis Fisk happy to help. We also invest in Indiana and STL.

What sort of investing do you do, what type of property or asset class are you looking for?

Where do investors buy in St Louis, MO ?

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