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Updated over 9 years ago on . Most recent reply

User Stats

198
Posts
25
Votes
Rick L.
  • Investor
  • Saint Louis, MO
25
Votes |
198
Posts

6 Plex Analysis

Rick L.
  • Investor
  • Saint Louis, MO
Posted

I have the opportunity to purchase an off market 6 family building in the metro East suburban area of St. Louis (Not East St. Louis).  The seller has stated they're wanting to free up cash to pay for their daughter's college education.  I haven't asked to verify any of the financials YET, however based on what the seller has initially disclosed the property looks like a great deal if the numbers are accurate.

Asking Price: $220,000

Gross Rental Income:  $3450

  • Two 1bd Units
  • Four 2bd Units

Insurance:     $1500 (seems low)

Taxes:           $4000

Utilities:         $330/month (Water, Sewer, Trash)

Property built in 1970.

Seller purchased property in 2013.

Property located in transitional area/lower income area, but low crime area

Property located within mile of High School and elementary school.

New Roof 2013

4 of 6 Units have been remodeled (pictures look very nice)

Stacked Washer & Dryers supplied in units

I would appreciate your opinions!

Most Popular Reply

User Stats

198
Posts
25
Votes
Rick L.
  • Investor
  • Saint Louis, MO
25
Votes |
198
Posts
Rick L.
  • Investor
  • Saint Louis, MO
Replied

Thanks for your responses guys. I just completed a drive-by evaluation of the property and immediate surrounding neighborhood.  I spoke to several neighbors in the area.  The place was nice and well maintained.  However, the surrounding neighborhood was not the area I wish to invest.  In fact, I was subdivision was even more economically depressed than what I initially had believed.  Based on my evaluation I'm no longer interested perusing this property.

An investing pearl I've learned is to always walk the immediate neighborhoods.  Speak with residents to get a "feel" for the area and insight into the status of the area.  It could save you from a big headache down the road, like I believe I just did.

@Matt Inman good to hear from you!  Hope you're doing well!

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