All Forum Posts by: Peter Aziz

It depends on the circumstances and the details surrounding not only your existing property, but also the details surrounding what you intend to do with the proceeds of the sale. What's your ROI/Cash on Cash Return on your existing property and how does that compare to what you intend to with the proceeds? If existing returns > potential returns, then it doesn't make sense selling.

Thanks for the info, @Lawrence Siers! I wish I could make it - unfortunately I live in Southern California! 

80% of 295 is in fact 236. How did you estimate 60k in cash out? If you want to send me a picture of your settlement sheet I can walk you through all of the closing costs.

Congratulations! I've also been talking to Peter MacKercher and am excited to work with him!

Lots of great info here. Appreciate all the input. BP members have really gone above and beyond. I just booked a flight to STL. I'll be in town from 12/15 - 12/18. I'm hoping to get a feel for the different neighborhoods and look at a few properties. I certainly have a lot of work to do before I get there, so will continue reaching out on this thread. If anybody wants to meet up for a beer or a bite while I'm there, let me know!

Wow! Lots of useful information here. Thank you so much @Account Closed, it looks like one of the most premier areas here is South Grand. How far east of Grand Ave can one go and still be in a 'good' area? Is Louisiana Ave to far east? Does one want to stay away from Gravois Ave (Historic 66)? 

@Frankie Woods and @Account Closed

Thanks for the responses. I suppose I should have articulated my question better. It appears that a mortgage on a home in STL (assuming 20% down), particularly in the south part of the city, is considerably cheaper than the going market rent on the same unit. Given that dynamic, why would anybody rent when they can own for cheaper (provided they have the down payment)? 

Jake, I'm going to take you up on your offer and reach out to you. Thanks for making yourself a resource. 

Hey there BP,

I've been considering purchasing a multi-unit (2-4) in the St. Louis area for some time. It appears that one can expect a decent cash on cash return of 12-15% in the area, which is MUCH greater than what I can expect investing in my hometown (I'm from Southern California). Understand that I'll be giving up appreciation for cash flow. 

One of the struggles I'm dealing with is the crime rate and the quality of schools in St. Louis. In Southern California, primarily in the suburbs, low crime rates and good quality schools are prime factors I would consider when investing in real estate. Are these factors I should be considering in St. Louis as well, or are the dynamics so different that maybe they don't apply when investing in the city? On another note, with such a high cash on cash return (read low market value / high rent rates), why is there such a strong rental demand? Is the average income in the city so low that the average person can't manage to save $40K to buy a $200K home? Also, any insight on vacancy rates/factors in the city? 

I appreciate any guidance and am happy to connect to discuss more. 

Many Thanks, 

Peter  

Taking it back to one of @Kyle Murphy's questions: Are there any best practices for estimating capex for a building? How about estimating what has been deferred?