Saint Louis investment properties (Dutchtown: real estate, apartment, broker)

[matt1975]

What are the best value areas to invest in multi-family properties in Saint Louis? I have been focusing my search around Tower Grove East, Tower Grove South, Dutchtown and Gravois Park but am also relatively new to the area. Pricing looks attractive but even here the neighborhoods can become questionable very quickly in regard to crime.

I am looking for the best return in both the short and long term. I have a very small investment group with enough capital to pick up 12-20 units and have no problem qualifying for 75-80% LTV. Turn-key is always preferred but not required.

My broker has suggested staying in the 4-unit category but really I'd like to find a couple 8-10 unit buildings that are good producers. Thoughts and/or recommendations???

Thank you in advance.

[RichMonk]

In TGE you aren't going to find much with more than 4-units to a building. Much of the stock is 2-family flats.

I just bought a two family unit in TGE and I must warn you, if you plan on buying this season, prepare to go into it with an aggressive offer. Properties are going quickly. I went into contract within 2 days of listing. Several more multi-family units in TGE have gone just as quickly (some even faster than that).

For TGE, you generally want to stay West of Compton, though East is gradually improving...it is generally fine all the way south to Gravois but I'd prefer to stay North of Connecticut as it starts to get a bit run down as you get closer to Schnucks and fast food. Also, I'd avoid having a place right next to Roosevelt...am always hearing stories of those kiddos getting into trouble...as teenagers do.

EDIT ADD:My previous apartment is an 8 (maybe 10) unit building wrapped around the NE corner of Crittenden and Arkansas. Currently managed by Red Brick, I'm not sure of the status of its ownership. Anyway, this is one of the only larger buildings I've seen in the area.

[billiken]

I don't own investment property myself, but I'd think the grove might be a good spot to look at as well, based on your above list.

[RichMonk]

Oh yeah. Forgot about the Grove...that area is growing up fast. Once they get that new station in Cortex, I think the area is going to become pretty hot in the next few years.

[MUTGR]

Originally Posted by matt1975

What are the best value areas to invest in multi-family properties in Saint Louis? I have been focusing my search around Tower Grove East, Tower Grove South, Dutchtown and Gravois Park but am also relatively new to the area. Pricing looks attractive but even here the neighborhoods can become questionable very quickly in regard to crime.

I am looking for the best return in both the short and long term. I have a very small investment group with enough capital to pick up 12-20 units and have no problem qualifying for 75-80% LTV. Turn-key is always preferred but not required.

My broker has suggested staying in the 4-unit category but really I'd like to find a couple 8-10 unit buildings that are good producers. Thoughts and/or recommendations???

Thank you in advance.

Not a real estate expert, but I'd be very leery of Dutchtown.

[RichMonk]

Originally Posted by MUTGR

Not a real estate expert, but I'd be very leery of Dutchtown.

Indeed...low prices for a reason.

[matt1975]

HI RichMonk, billiken, MUTGR,

Thank you for your responses. I agree that properties are always less expensive for a reason. I appreciate your thoughts and warnings. It was great hearing preferred boundary streets too. There is a lot that RE agents can't tell you about an area and it's nice not having to learn everything the hard way. Coming here from Chicago has been educational and it seems more challenging to command a desirable return but also like the landlord laws are more favorable here.

Matt