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Does anyone have advice or experience about the St. Louis market?
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The duplex’s in the area seem hard to find. In some areas they are very low income and seem “tough” to manage. In others it seems like the area is going up so fast the prices are too expensive. Should I consider buying a house to rent out? Pro’s and Con’s?
Denise,
You never lose by knowing more.
Landlording is a time honored investment strategy that will make you rich… but, you have to know what you are doing.
I recommend that you work on improving your knowledge and skills first, and then look to invest.
As far as the St. Louis market, I have no experience there.
Duplexes are great, in that one side often can pay much, or the whole, note. Thus, when you have a vacancy in one unit (half the rental), you still have income coming in.
A single family home is the Rolls Royce of rentals: the lifestyle experience everyone wants. They are the easiest to rent, and sell, if you need to.
First work on building more general rei information. Then look into the particulars.
Hope this helps…
Hal
To add what Hal has said. Single family home are much more liquid and desirable to most tenants. In turn duplexes and multifamily will generally give you a higher return on you equity. Is your goal cash flow or wealth? Is your job stable in the St. Louis area? A rule of thumb is that overhead(taxes, insurance, utilities, maintenance and mangement) is about 40% of the gross income. Do you plan on doing the maintenance and management?