Real estate investors will find some excellent opportunities in the St. Louis market. There has been a lot of interest in our area lately, as prices on the east and west coasts and in larger Midwest cities like Chicago continue to rise.
Whether you’re an out of state investor looking for a new market or a local investor who wants to start or grow a portfolio of rental properties, we’re sharing some great reasons to consider investing in St. Louis.
Home Prices are Reasonable
Unlike other markets, St. Louis isn’t a prohibitive real estate field to enter. You don’t need a million dollars to buy an investment property here. In fact, you can find some outstanding rental homes for less than $150,000. Depending on what you want and where you want to buy, you’ll be able to find a number of deals that don’t require a huge investment of your capital. The affordability of the assets in this market make St. Louis a great option for investors of every level.
Cash Flow and Appreciation
Investors in St. Louis have a unique opportunity to attract cash flow as well as appreciation, offering a strong strategy to earn more on the rental properties they acquire. The market is balanced and stable, and homes have appreciated in value more than 20 percent over the last three years. This provides for some serious return on investment.
Diversity of Supply
Single-family homes in new construction neighborhoods as well as in established communities are available. There are also some reasonably priced apartment buildings and older homes and buildings that can perform well with a few updates. Whether you’re looking for a multi-family investment or a single-family residence, you’ll be able to strengthen your portfolio and add any kind of property that you’re hoping to find.
Rents and Tenant Pool
Rents are also stable. Most apartments are renting for $800 to $1,000 per month and a single-family home that’s well-maintained and in a great neighborhood can get $1,200 to $1,500. This provides for some great cash flow, especially when you can purchase a property at or below $100,000.
The tenant pool in St. Louis is also strong. With a good economy and a strong educational environment, there are always high quality tenants looking for good homes. There are more than half a dozen colleges and universities in and around St. Louis, making student housing a great investment opportunity.
Finally, investors looking for landlord-friendly laws will want to consider buying a St. Louis rental property. You can begin eviction proceedings after just a few days when a tenant is late with rent, and there is no rent control to speak of. Tenants have protections, but the courts are far more balanced than they are in other states when it comes to holding landlords and tenants accountable to lease agreements and rental laws.
We have been providing St. Louis property management for many years, and we love working and living in our community. If you’d like to hear more about why this area makes a great place to invest, contact us at AMOSO Properties. We’d love to tell you more.