St. Louis 4 unit BRRRR property, first time.

[Trevor Howard]

My wife and I have been investing in Springfield, but are looking for the next step. We have thought about trying BRRRR strategy on a 4 unit in south St. Louis. First question has anyone successfully done this in the current market climate, last 3-6 months? Second question, anyone that has this rental type, are there any issues with investing in this type of property that a newbie should be aware of? Third, what are the vacancies like for 4 units? There seem to be a fair amount of properties that have been on Zillow rentals for 60+ days.

I’ve done a fair amount of research and know that landlords typically pay water/sewer/trash. I’m looking for a full gut remodel. Any information or help would be appreciated. 
Thanks, 

Trevor

[Jonathan Taylor]

@Trevor Howard I am finishing a renovation on a duplex in south St. Louis as we speak. The BRRRR strategy is tried and true but in this market you need to restructure your numbers. Lower LTV on the refi (65-70) for the rents to cover the new loan on your exit strategy. I will probably sell my property as I go caught as the higher rates don't cover my debts on my exit.

So yes, it works but be conservative on the exit and run higher rate numbers if you plan to keep it. 

Landlords do cover those utilities in this market.

@Alex Bekeza owns more units that I do in the area and is a great resource.