What Are Your City’s Whys, Pros and Cons?

[Peter MacKercher]

As real estate investors we invest in properties, but we do so after choosing where we want those properties to be. I was just asked to list three pros and cons about my market, south city St. Louis, in a message, and thinking about my answer made me think about the bigger picture -- that I’ve chosen to work and help revitalize this city for a number of reasons. Since we all play a part in our city's community, I wanted to share my pros and cons and some of my whys about my city, and to invite you all to share your own.

My Whys:

St. Louis has an interesting history and a lot of character. Once it was one of the largest cities in the United States and is home to many famous people, companies, and an awesome craft beer/home brewing scene, which is another passion of mine.

It’s had a long string of difficulties since it was one of the US’s largest cities, but at the core it’s an easy city to love. That’s part of what makes it a great area to invest in; even with (and because of) its checkered past the property prices are hard to beat and we’re starting to see an upturn in our economy from the seemingly boundless enthusiasm here paired with lots of investment and development. You’ve probably heard about the flashpoint of Ferguson nearby St. Louis; even that has only stirred up more involvement from and in the community and created not just a community-wide but national conversation about hugely important issues we all face. That makes me proud and happy to be a part of my city’s revitalization, however small my part may be.

My Pros and Cons:

3 Pros:

• Price points are low even as the city's economy is growing in many sectors
• ROR (12%-18%)
• Lots of solid brick, historic and craftsman buildings

3 Cons:

• Hot, muggy summers and cold icy, winters
• You need to know the city to be sure you're investing in a safe area; two blocks one way can be completely different
• Racial tensions; one of the most segregated cities in the US

As real estate investors I think we must be business people and also dreamers, whether the dream is about the impact we want to have on our community or our own lives. Every city is unique, and so I want to ask you all: What are your city’s three pros and cons? What makes it desirable? What makes it difficult? What was it about your city that hooked you? If you invest in multiple areas, add as many as you want.

Curious to hear all your answers!