Dennis Norman with St. Louis Real Estate News, takes an interesting approach at determining the best area in the St. Louis Metro area to buy Investment Real Estate. By looking at the median rental rates and median vacancy rates and then comparing it to the median home value for each respective area, he determined a rent to value ratio.
You can read about the details of his method and his full findings here. Based on his simple method of determining a Rent to value method he found that St. Louis City was the best place to buy rental property.
OK before you go grab your pitch fork and head to Mr. Norman’s house to tell him exactly why he’s wrong, and that South City, South County, South Hampton, The Hill, Chesterfield, St. Charles or dare I say North County are better places to invest, realize he was merely performing a numbers experiment. It is just one of many factors one can use when choosing where to purchase rental property.
Ultimately what will determine your success is how good a manager you are. Remember there are investment models for almost any type of property in any area of St. Louis, you have to know which model fits each area best. This is really where enlisting the help of a Real Estate Pro may be advisable.