All Forum Posts by: Corey Schaecher

She's right, it's a developing area that still has a ways to go but is very popular with investors right now. Several people on BP have properties there and I'm sure there are other posts from folks who know more about it than I. It's got some new popular restaurants and bars and is an LGBT friendly neighborhood.  Turn key properties might be tough to make a great return (I haven't looked there so I can't say with certainty) you'd have to do the math obviously but there are also a lot of houses that could use some work where you could build equity.  If you get a deal and the area continues on this path, you could have a good bump in equity in the next few years. 

Also, I tried to PM you but don't think I can since I'm not Pro, but I'm currently in the process of re-renting my Dogtown house (next to Richmond heights) and there's a lot of interest in that area. I had someone offer me an extra hundred a month (4th showing)  so they could lock it up. When I told another applicant he said it was the third time its happened to him.  So you could very likely get that house under contract and have a signed lease by the time you close (obviously with a provision in the lease saying re contingent on the closing going forward). If you're paying cash and it's turnkey, it's something to think about if you think you can get the rent to make it worthwhile.  $145k could also get you a duplex in South City.  I can let you know some decent areas but it sounds like your cousin has her finger on the pulse. 

I think this house popped up in a report I get, if so, the sub 1000 sq footage might result in slightly little lower rent. Your agent - assuming they're based here - should be able to give you a good idea on how that will impact the rental value.

It depends what little pocket inside Richmond Heights you're talking about, but probably in the $1200/month range. I have a 3bd/2 bath in the next little area to the east (dogtown), and it goes for $1400, I might be able to squeeze $1450.  I have a 2bed, 1 bath in the next area to the west of Richmond heights (brentwood) and I get $1700 there. Its a bit nicer area where if you were to try and buy turnkey there, that's house would $220+. But from what ive seen in richmond heights, depending on the surroundings, you should be thinking in the $1100-$1300 range. Happy to answer any questions about the area. 

I appreciate the thoughts and input, all good. But I may not have emphasized the right points in my question. It's not that I don't have the time, energy, resources, desire, etc. or that the property is "cool," it's not. And no, I don't want to live there. Hence the rental. My question and the real issue that I'm looking at is the opportunity cost of the money, time, and effort of that house vs another house that might have better cash flow, chance of appreciation, and more $ going to equity each month. There's also the whole cap-ex issue, which is why I mentioned the roof, wall, furnace, and water heater. So, the inquiry is more on the numbers and others experience with this type of situation. Do I cash out the few bucks we can from mortgage pay-down or continue to let this one chug along at a lower rate. Again, if I didn't have the time, energy, resources, or whatever else, I wouldn't have my other rentals or considering trying to trade this one in for a better deal. And it's also not a matter of sitting on my you know what and getting it ready and rented, its making a decision on hold or sell, which is why i need to make the decision quickly to avoid any unnecessary vacancy. I don't want to accept applications and then tell them I decided to sell the house. I'm fine with my turnaround time as well, life's busy, I'm not watching the grass grow while the house sits empty losing me money. The "ugh" was because you'll recall that 2006 was not a great time be a buyer, that is how we ended up with a house that was bought at the top of the market with no equity to pull out or offset any loss in a sale, so we broke even and eventually made some money as a rental. If I bought in 2010 with 0%, I suspect I'd be cash flowing much better and wouldn't be asking this. I could be wrong.

Alright BP Community, I need some advice here. I have to make a decision soon on a poorly cash-flowing house that was our first rental out of necessity because my wife bought it in 2006 with 0% down (ugh). My tenants just moved out, do I keep renting, sell it and find a replacement property, or turn it into an AirBNB. The house is a cute 3 bed, 2 bath in a convenient area that's very popular with post-college aged folks, in the Dogtown area of St. Louis. An agent very well versed in the area said it should sell pretty quickly for 160-165k. The current financials for the place look like this - spoiler alert, it doesn't satisfy the 1% rule: Purchase Price in 2006: $165K Current Loan Payoff: $138,500 (0% down after all) Rental Since: 2009 Current Monthly Mortgage (taxes, insurance, and PMI [ugh] included: $1228 Current Monthly rent: $1400 Vacancy has never been more than 3 weeks, and that's just because of slow turnaround time by me, popular spot. I'd have to stage the house for sale ($1500) and do repairs of about $750 The roof was put on when the house was renovated in 2006. The furnace and water heater are old, and an inspector will probably say i need to replace a retaining wall that's leaning slightly toward the bordering neighbor's house (they have to split the cost under state laws) and fix a few other things the flippers did hastily in 2006. I need to make a decision ASAP because I either need to get it listed or get tenants in there by July 1, 2016. HELP!

I'm hoping to bump this post now that its been a month to see if there were any recommendations. I tried to message Ray Bartle but my app crashes every time I try to hit send. I'm shocked how hard it is to get some contractors to give bids. Apparently they all have plenty of work.

The main sewer line in a SFR backed up and caused some standing water around the drain in the basement laundry room. No damage, but it's Memorial Day and there'll be a holiday charge for the drain company to open the line (if commercial drain cleaner doesn't work). They're hosting a Memorial Day BBQ at their house and need it fixed before it starts. Do I just pay the fee and be done with it or do I bill that back to the tenant? I have to go back and check the lease to be certain, but assume for purposes of this question that the lease is silent on the issue.

I have three friends living together in a house who are splitting rent, but they're not getting along any more and all want out of the lease now.  Their lease is set to expire September 30, 2017 and they want to be out June 1, 2017.  

I was planning to charge 2 months rent as a termination fee.  Does that seem appropriate being that there's only four months left?  I have to turn the house over and find new tenants (Dogtown area in St. Louis).

I welcome any thoughts.

Corey

Aren't you the guy who told newbies to stop asking you for advice?

Hello all, I'm in the process of hunting for my first multi-family property in the Tower Grove South, Lindenwood Park, South Hampton, South Garden, and Holly Hills, areas in St. Louis City, Missouri and would like to have a few recommendations for contractors in my pocket for when I find the right property and need to get bids. If you've rehabbed a multifamily property in the St. Louis, area and have a contractor to recommend, please let me know. If you have addresses of houses that'd be great too. Thanks!