Perspective on the Central West End

[Will Johnston]

I'm looking at investing in a flip project in the Central West End, and I've got a couple of questions.  I'd be most appreciative if those of you who are familiar with the area could give me some insights.

First, the house is about 3000 square feet, and the plan is a total gut rehab with upper end finishings.  The projected sale price is $775k.  Does that seem right?

Second, it seems like condos in this area sell for more than houses.  I'd love to know the reasoning behind this.  I'd understand if they were high-rises with great views, lots of amenities in the buildings, etc., but they're not.  They're relatively small buildings.  Definitely nice places but not a lot of extras.

And then third, any indication on how the market is looking in St. Louis in general or in this area in particular?  I live out of state, so my only real connection is some good friends that live in St. Louis, but I'd love some insight onto how the market has been recently. I know where I am the market has softened considerably in the past six months.

Thanks!
Will

[Joshua Harger]

@Will Johnston  

As far your first question goes, it depends on the specific location of the property. If it is North of Lindell, I'd say that seems too high. 

For your second question, it depends on where you're comparing the condos to homes. Homes in the Central West End sell for more than the condos, but there are more condo sales because there are much more condos. If you're comparing the a condo sale in the Central West End to home sale more North say around Vandeventer area, then the condo sales will be higher than home sales just because that is a considerably different area value wise. That's probably what you're seeing. 

Lastly, for me the market seems to be doing well right now. All my investors I work with are doing great right now. Plenty of fix & flip deals, along with a good chunk of solid buy & holds. 

Hope this helps!