Hi--just bought my first property in St. Louis? What's next?

Question

Hi! After months of lurking on the Bigger Pockets forum, I finally bought my first place last month in the city of St. Louis. A brick duplex about 90 years old, very solid. Now I'm looking for No. 2...thinking of Tower Grove or U. City... any thoughts?

Bob Hines · Answer

Part of the decision of where your next property should be based on where your current one is. St. Louis isn't that big that you can't get properties all over the place but it sure is nice when they are all close to each other. It's also nice to focus on one area and get to know the market really well instead of scattering all over. U City and Tower Grove have a lot of differences being different jurisdictions and a different pool of tenants. I lived in South City for 10 years so I lean more to Tower Grove. I now live in St. Charles and have looked at other areas to invest in but I keep going back to the city with one of the big reasons being property taxes. Right now I average less than 1 month's rent (0.90 for 2015) for property taxes in the city. Other locations I looked at in the county and St. Charles averaged 1.5-2+ month's rent for property taxes. That is a big difference in profitability.

Congrats on your first one and good luck on the next one(s)! If you have any questions I will gladly share what I know.

Phillip Davis · Answer

Thanks, Michael! It's a great feeling to head toward financial independence!

Frankie Woods · Answer

Congrats!  Both locations are great, it's all about learning the ins and outs of the area.  As you know, STL can be block by block, so you really have to know your stuff.  Good luck moving forward...the first property is the hardest.

Vince Mayer · Answer

@Phillip Davis, welcome to BP. As a wholesaler in the St Louis area, I'm interested to know what zip code you bought in and what kind of property are you looking for?

Lee Carrell · Answer

Hi Phillip!

Good job on stepping out! Speaking from personal experience, I would stabilize the first property before buying another. Follow the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) formula. Be enthusiastic, but don't get overanxious to hurry up and accumulate more and more properties!

Jorge Garifuna · Answer

Phillip,

Congrats on your new investment. I live in California and also own some investments in St. Louis.

Michael Boyer · Answer

congrats Phillip , there are lots of good landlord resources here, check that forum as you join this ranks, and some good blogs. On outside ending, I have some old classics of landlord lit in a blog post (all probably free at the library or low cost used). Exciting to hear you are looking for another. Best of luck....

Hi--just bought my first property in St. Louis? What's next?

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