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Updated about 4 years ago on . Most recent reply

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7
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John Smith
2
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7
Posts

Help! Ferguson MO section 8 property with good cashflow

John Smith
Posted

I am in a dilemma and need help. I am under contract for a SFR in Ferguson, MO that I found through roofstock. The property has good cashflow with a section 8 tenant and all numbers are looking good. Only problem is I got to know about the really bad neighborhoods in the Ferguson area from a local insurance agent and am getting second thoughts if I should even go with this.
The home was appraised for about the same value but am not sure if the appraisal can be trusted completely as lot can change in even a half mile distance in this area.

The home is near the forestwood park area in the 63135 zip code. It’s 3 bd 1 ba, 1320 sqft and the purchase price is $107k

Would I be able to sell this property later? Is the area really bad for resale? I am ok investing in class c properties as long as I get good cashflow and don’t have issues selling the home later. Or should I forego my earnest money and back out now?

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