What do you think about the 63121 and 63111 Neighborhoods

[Tommy Adeoye]

I have been getting tons of owners looking to sell distressed properties between $5k and $12k on the high end in the 63121 and 63111 St Louis MO. I comp’d the areas and turn key go for $29k - $39k. They seem more like a B-, C class neighborhoods and I hate to say no to bulk deals. 

Anyone in the area familiar with the rent performance? I suspect lots of section 8.

 I searched to see what the rental inventory is looking like out there as well and it looks like they have quite a lot waiting to be rented. Anyone willing to drop some insights?

[Zach Stillman]

63111 (patch area) is a tough zip code due to its history and flood zone risk.  It has a lot of history, but also lots of problems with city systems.  I don't feel the need to carry personal protection, but I do keep an extra hammer in the truck cab and bed.

Owner-Residents, I found, are long term, almost multigenerational.  Renters seem to be the problem as bad apples are being pushed into this area.  Hopefully we can see a bit of cleanup once we get get problem people out of the units.

Up by Ivory Theater and up Virginia and north of Loughborough is more of the sweet spot, but then you get gut rehabs that won't pencil out a return better than investing the same amount in VTSAX.

I see properties being mothballed in the area closer you get to the casino on the city side.