Buying Rentals: Foreclosures vs Fixer-Uppers vs Move-in-Ready

[Ralph Noyes]

Just dipping my feet into the St. Louis area (around Tower Grove Park mainly) and have just begun talking to an agent about finding a small multi-family to house hack with. This person is a long-term buy and hold rental investor himself, owns his company, seems knowledgeable. He didn't mention Foreclosures, BRRR'ing, Fixer-Uppers, but did show us a few places (on the computer) that looked move-in ready, or close to it.

Can any experienced STL investors familiar with the south city/tower groves areas comment on whether you feel it's necessary to buy REO's or properties that require significant rehab in order to make solid returns? Are they readily available or are they "unicorns"? If they are available, do you feel that the returns are worth the time, hassle, and risk involved?

Everyone in the blogs and the books seems to ONLY talk about these kinds of properties as if any other situation is sub-par.