St Louis??

Question

So im getting my feet wet and have placed a contract on a home that would be a great buy and hold. The only thing is getting my buyers to reach out to me. I have been told that this home is priced to high but that it could work as a rental. Ive dropped the price because I went back and did numbers and feel my buyer would still come out on top.

My question is how do I market homes that could be more a buy and hold than just a good wholesale price.

Gunnar Teltow · Answer

@Fannie Hood  we're actively buying in 63031 and 63033. Typically, we can get houses that will rent for $1k for about $60-65k all-in (purchase, closing, rehab) so $70k is a little high. The ones we buy typically appraise in the 90s.

63034 has some good parts with slightly higher average incomes. Feel free to PM, email, or call me if you'd like to discuss. Thanks!

Gunnar

(512) 637-1543

Matt Booth · Answer

Hi Mukul,

I will take a stab at that one.  I have purchased a few homes in the Normandy area in the past and they made pretty good Section 8 rentals.  It depends what you are trying to do.  The school district there is unaccredited at the present time and values are very low.

There does not appear to be a rehab-retail market there at the present time in MOST parts of Normandy.  You do have Express Scripts and UMSL that have given some stability to the area but it remains to be seen if this area can turn or not.

MY OPINION is that it is a pretty risky area due to the school issue but if they can turn it and that is a big if (Riverview Gardens up North has been unaccredited now for quite a while and values have plunged and remained pretty depressed as a result) maybe it could be a fair investment but I would say there are better areas of St. Louis at the present time to concentrate on.  Not to say this wouldn't be a real speculative home run however should the school re-gain the good graces of the State and area businesses continue to grow and expand.

Hope that helps!

Mukul Lalchandani · Answer

What are your thoughts of Normandy area?

Gunnar Teltow · Answer

@Alex Tillman yes we are. Currently we're up to about 400, a lot of them in Florissant but other areas as well. PM me and I'll connect you with our local acquisitions guy. Thank you.

Rob Hood · Answer

@FannieHood You might be able to Lease Option the house or sell it to a owner occ (via Craigslist or Bandit sign). I wiuld lease from the owner at $700 per month and get a renter in there for $900. Then sell it to them 12-24 months later at $105-110.

Fannie Hood · Answer

I realized I didnt put any info up about the home...

63034 area

-3 bedrooms, 2 Bathroom, 1620 sqft

-Turn-Key

-ARV: $100-105k

-Estimated Repairs: less than $1k, cosmetic (paint, a small portion of post & base repair on covered porch, but in good condition)

-Market Rent Est: $950-1,100

Asking Price: 70k

Unreasonable?

St Louis??

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