All Forum Posts by: Gunnar Teltow

Mark, what's the address? Size of the units? Without knowing that, it's impossible to give you feedback. The numbers are very light unless this is in a primo area of St. Louis.

For comparison purposes, I bought a couple of duplexes on Bermuda Drive for $50k each about 6 months ago, $100k total for four units that are rented at around $685 each.

Ben, congratulations on finding this one. Here are your next steps:

• Sign a standard MO Special Sale Contract with the seller (important: make sure to include the inspection addendum). Get 30 days to inspect and a financing contingency if you can.
• Find an equity partner. Depending on the specifics I may be interested, please contact me by email or phone (below) in that case.
• Figure out what to do to the property (preferably with the help of the realtor who is going to sell it for you afterwards) and your budget.
• If it's still a deal after you have your construction bids, proceed. If not, back out based on the inspection addendum.

It may seem daunting but it's really pretty straightforward. I go through it in St. Louis about 2-3 times each month, and I don't even live there. Call me if you'd like to talk it over.

Good luck!

Hey Mark, I invest in St. Louis from out of state (Texas) as well. You can contact my agent Terry Bordeleau. He has both residential and commercial experience and can be 100% trusted, I've known and done business with him for over a decade.

Same here, I'd love a recommendation. I didn't have to use one yet but I know the day is coming.

Hi Darrian, welcome! We're actively buying in 63031 and 63033 so if you come across anything in that area (since you live there) that you'd like to wholesale or flip to us please let me know. Thanks! Gunnar

Welcome Ron! You live in a great market for cash flow rental real estate investing. Good luck!

@Frankie Woods yeah I feel your pain, happens to me a lot, too. Usually some agent-turned-rehabber just slapping on some paint and hoping that a buyer will come along who doesn't do an inspection.

Earlier this year I had a guy who was too cheap to winterize or heat the home so when we inspected it, several pipes inside the walls leaked like Swiss cheese.

@Doug Pretorius thank you! I feel your pain. I live in Austin so same situation here. That's what let me to invest in St. Louis. I hear there are many other good cities to invest in for cash flow, like Kansas City and Indianapolis.

@Daniel B. & @Chris Winterhalter thank you very much for your perspective. I'm coming around to that point of view and will not buy the C-type property we mostly own currently unless it comes with seller financing.

Most of our properties came in the 25-pack we bought in November, and the property manager definitely has had his hands full with those. We only have $200k in that portfolio due to the outrageously good financing terms the seller provided, and my plan his to get that amount to zero buy selling some of the nicer properties over the next year or so. But even failing that, the rent cash flow will get us all our money back withing three years so our risk is limited.

We've had several tenants (who came with the properties) stop making payments, and I fully expect several thousand dollars of rehab for each one. Another property just burned down. On the plus side, 3 of the 5 that were vacant have been rented.

In summary, you're both right! It'll be all upmarket from here.

Hi Curtis,

Not sure what MAO is and how it is used but here's what my most recent purchase would look like with that formula:

$1,000x144=144,000

$144,000*.65=93,600

$93,600/60,000=1.56 or 56%

Hope this helps. For what it's worth, I calculate my maximum price (all-in) by dividing the median rent for the area by 0.017 (59 rent multiplier, in other words). That seems to be about market for what product I'm going for right now, and allows me to still make my numbers. Higher is always better of course.