Most Affordable Investment Cities in USA ?? St. Louis MO
Calling all Bargain Hunting investors!! Mingling with realtors across the continent recently reminded me about the affordability of property in my home base of St. Louis, Missouri, USA and how insanely cheap property here appears to investors in other markets. If you didn’t take note, St. Louis was recently listed as #2 in a list of 2016 US Real Estate Hot Spots, read about that here.
With an typical single family residential sale price in the low 200s, St. Louis can be a very attractive place to buy an investment, especially for investors living in markets where the average sales are 400k or more. Visitors from larger cities usually comment on 'how much' we can get for our dollar, whether that is land, square footage, or level of luxury, St. Louis is just more affordable than other cities - making it a great place for real estate investors to pick up rental property or invest in a rehab for significantly less money than similar investments in their home markets.
As an investor here are some examples (not specific properties) of what its reasonable to find.
- Single family residences between $25k-$60k rented or rent ready around $600-$900/month. Similar even lower priced properties can be purchased, rehabbed and rented.
- Rehab candidates in the $75-125k range that with full historic renovation can sell $250k and above, depending on size and location. Many qualify for historic tax credits as well. Typical rehabs will be extensive including system updates or installs, roof replacement, tuckpointing, etc, but with this spread its easy to be profitable.
- Multifamily units at roughly $25k per unit, sometimes less, often already rented. (Yes, a 4 family buildings can be found in the 80-120 range, and average rent would be $450-500 for a 1br unit).
- Lofts, Condos, or homes that are retail ready investments can be found at a variety of ranges in popular neighborhoods, with higher rental rates close to schools, hospitals, and incoming technology companies. Condos can start under $100 in many popular areas, and also sell at luxury levels – where you can find tons of space and luxury and prices well below costs in other markets!
Here are a couple of listings currently in my inventory, and certainly if these don’t interest you, we can find other opportunities.
611 Wesley – 2 bedroom 1 bath with large lot, just needs some minor cleanup and sink/toilet install. Both are present and sold with property. $37,800
4709 Palm – 3 bedroom 1 bath in mid-rehab status, some materials present, mostly cosmetic work, estimate $10-20k to have rent ready, depending on your approach. $25000
- An 1800sqft lakefront property with a gorgeous wall of windows view to a 13 acre lake and your own dock for fishing, boating or sunsets - 4bedroom 3 bath - in Villa Ridge, MO $259,900
- A 1000sqft Bungalow, 3 bedroom 1 bath recently updated, move in ready for $125,000 in the Princeton Heights neighborhood of St. Louis City. It's a quiet South City Neighborhood on a block with multiple policemen as neighbors, and accessible to everything.
Contact me to learn about further investment opportunities and connections in St. Louis, MO, USA!