St. Louis Bellefontaine Rental Properties 63137, 63136, 63138

[Lane Forhetz]

Hello BP Community!

I am looking into 3/1 rental properties in the 63137, 63136, and 63138 zip codes. My question revolves around whether the risk is worth the investment. Here is my strategy, please feel free to poke holes:

Purchase property with cash for about $15-$25k put $5k to $15k in renovations have home appraise around $45k, pull out most if not all money invested, then rent property for $800 to $850 per month. I would continue to do this with multiple properties to increase monthly cashflow.

This will leave about $300 cash flow after all expenses (Prop Mgmt, Maint, Vacancy, insurance, prop taxes, loan payment) but before income taxes. However none or little of my money is actually invested.

Obviously, appreciation would not be there, but I would be looking to hold these properties for a long time.

This seems to me to be a good strategy, however I am hoping someone may have some knowledge and/or experiences they are willing to share.

Thanks in Advance!