Why St Louis, Missouri? Turnkey, Buy & Hold or Fix & Flip

Question

BP: Your insight would be helpful.

I am teaching a series of classes for Real Estate Agents. I'm looking to expand there collective thinking about provided High Level and valuable service to investors. I like to show them some of your responses and experiences in the St Louis Market.

A few questions:

Are you investing in St Louis Metro area?

Are you buying:

• Turnkey
• Buy & Hold w/ tenant
• Buy & Hold - Rent Ready - No tenant
• Fix & Flip
• Fix & Rent

What have your been your experiences investing in St Louis? The Good, The Bad & The Ugly.

How do you find properties?

How many properties do you own in St Louis?

Thank you for your comments in advance!

Maggie L. · Answer

Are you looking for perspectives from agents as well as investors? As an investor I've picked up a fix as well as a near "turnkey" for rent through the MLS. I only own 4 doors atm, but as an agent I've also helped people looking to purchase fix and flips.

This is only my perspective, but for the metro area really should be broken down into smaller areas. The St Louis City market is VERY different than St Louis County or St Charles County, yet are all part of the metro area. The truism "all real estate is local" is especially important here. In the City, where I specialize, the highly block by block market means you need a lot of highly localized information to understand the market dynamics. It's one of the few major metro areas Zillow lists, but doesn't include any details about how accurate the zestimate is http://www.zillow.com/zestimate/#acc.

I would recommend anyone interested in working with investors spend a lot of time also getting to know the local law. A few recent examples important to any buy and hold investors:
St Louis County has recent legislation important to landlords http://www.stltoday.com/news/local/govt-and-politi...

This year the City changed the law so Section 8 vouchers must be accepted as an income source http://www.stlamerican.com/news/columnists/guest_c....

Rodney Wideman · Answer

I typically buy fix and rent for long term houses. I currently have 4 rentals and I'm actively looking for my 5th at the moment. Everything I have bought has been on the MLS and all are in Jefferson County mostly because I live here but also because they cash flow very well. Also contractors are much cheaper in my area than in the St. Louis county/city area. I have considered buying in St. Louis County before but with the recent legislation they are trying to pass that Maggie mentioned I'm not sure I would anymore. It sounds as though St. Louis is leaning more anti landlord and I do not see that mindset changing.

I really do not have any horror stories, every house I have fixed up has went very well and I have only had to remove one tenant who actually left willingly without destroying anything. I would say my biggest problem is my area is houses not appreciating as fast as other parts of the STL metro but as long as the properties are cash flowing I'm still happy with my returns. Rents have increased very well over the past several years though which is helping to offset the slower appreciations.

Bryan Erlanger · Answer

I agree with Maggie's comments above that area with in St. Louis makes a big difference.

As far as deals go. We typically are working the fix and rent market and to date have only bought off the MLS we have 14 doors (one 4plex and the rest SFR).

One important lessons include always figure a little wiggle room in your numbers. You never know what you are really going to find till you start the work.

Jay Hinrichs · Answer

I fund a turn key company there that does a pretty modest business and they put out a nice product in the C+ class.

Why St Louis, Missouri? Turnkey, Buy & Hold or Fix & Flip

Why St Louis, Missouri? Turnkey, Buy & Hold or Fix & Flip

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