234 Days on Market:
440 N Hanley Rd University City, MO 63130 is listed for $324,900
180 Days on Market:
8132 Cornell Ct University City, MO 63130 is listed for $339,000
Archive for December, 2008
180+ Days on Market=Good Buys in University City and Clayton, part 3 of 5
31 December 08180+ Days on Market=Good Buys in University City and Clayton, part 2 of 5
30 December 08304 Days on Market:
7390 Kingsbury Blvd University City, MO 63130 is listed at $299,900
235 Days on Market
7210 Stanford Ave University City, MO 63130 is listed at $315,000
180+ Days on Market=Good Buys in University City and Clayton, part 1 of 5
29 December 08Looking in University City and Clayton I found 10 homes that have been listed for over 180 days. These homes range between $289,900 and $475,000.
276 Days On Market:
7137 Cambridge Ave University City, MO 63130 is listed at $289,900
282 Days on Market
7126 Pershing Ave St Louis, MO 63130 is listed at $298,000
For Rent: Utah Place Apartment
22 December 082 bedrooms, 1bath, 1500sf with a sun porch, alarm, laundry, central a/c, fenced yard and 1 space in garage. Rent is $1000/month with additional deposit for pet. Call Kim at 314-443-1091
Four Family Rentals: Part 4 of 4
20 December 08
4916 Murdoch is my final investment property post this week.
What I like:
The zip code. 63109 has been a very a stable zip code with high residential values. The building is ideal for a town home conversion down the road. Architecture and curb appeal.
Concerns:
Currently vacant. No income for at least the first two months of ownership. List price.
4-Family Rental Properties, Part 3 of 4
18 December 08
5247 Bancroft is an interesting property because it would make a great owner occupied investment property. Judging from the pictures, it looks like one of the first floor units has a spiral staircase to a finished lower level creating a two bedroom apartment. So if you are looking to owner occupy, you can keep the larger unit for yourself and rent out the other which should cover your entire mortgage.
Positive
Fully rented this building is bringing in $1700 a month. Sounds like the current owner is willing to make some improvements to sell. Off street parking in rear
Some Reservations
This building has interior entry to each unit, which means that the hallway is common space which is less appealing because it would not be possible to convert to fee simple town homes in the future. This probably isn’t a concern for most investors, but if the for sale market ever sky rockets again, it would be a nice option to have.
4-Family Rental Properties, Part 2 of 4
17 December 08
4165 Potomac is another 4 family that has piques my interest.
What I like:
Lots and lots of updates. Only one unit is vacant, so there’s money coming in right away and no wasting time looking for tenants. Fully rented the building would bring in about $2000 a month.
Concerns:
Floor plan: The units are small with walk-thru bedrooms. Rents are at their full potential. No garage.
Again, if you are interested in looking at these units, I’d be happy to open the doors for you.
4-Family Rental Properties, Part 1 of 4
16 December 08For the rest of this week I am devoting my posts to rental property. I have been thinking that now would be the perfect time to buy a four family building for myself. Currently I have large house that I have been renting out. It’s a beautiful house, but much better suited for an owner than a renter. It requires more maintenance than one tenant justifies. I figure with a four family there is a much better economy of scale. With a four family there are only four exterior walls and one roof to maintain while collecting four total rents vs. a single family building with four walls, one roof and only one tenant.
In selling the current building and purchasing the new building I am using a 1031 exchange which will allow me to transfer all the profit from the first building into the second building without paying any capital gains taxes at this point in the game. Taxes will be due, of course, but it is a matter of time. In the meantime, I am doing the preliminary research.
3811 Fairview is one of my favorites. Currently the building is bringing in $1780 a month in rents. It has some updates and each unit is two bedroom so I think over time as each tenant moves out I will be able to do a little work and significantly increase the rent.
Since I am using a 1031 exchange, my hands are currently tied. So, if you are interested in purchasing a four family and would like to view 3811 Fairview or any other listing in the St Louis City area, give me a call and I will it open up for you.
Stay tuned: More multi-family investment opportunities to follow this week.
Golden Age for First Time Home Buyers
9 December 08That is what the New York Times is saying. All signs point to the buying opportunity of a lifetime for those who can qualify for a mortgage: housing prices have dropped, mortgage rates are down to 5.5% with talk of going even lower and there is $7500 federal tax credit for eligible first time buyers.
Some Interesting Quotes
Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan
“You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now.”
The Big Fear
Loss of equity is the big fear. Many prospective buyers that I have talked with recently are cautious about investing their money into a home because they are afraid that housing prices haven’t hit bottom and that they won’t get back what they paid. The table below comes from a study ( also linked in NY Times article) done by the Center for Economic and Policy Research and the National Low Income Housing Coalition called “The Changing Prospects for Building Home Equity” which tries to predict locations where the equity positions of buyers purchasing now would be lower in 2012. The study has identified 33 markets (located in the upper right hand corner) where owners may have negative equity positions by 2012.
What I thought was most interesting about this particular chart was the position of St. Louis. Notice that it is on the lower left hand side in the section called Non-Bubble Markets and that in that it ranks in the middle of that list where the rank represents the size of equity from lowest to highest. What makes me feel particularly optimistic is the quote from the study about Table 1, particularly the last sentence: In comparison, metro areas without housing bubbles will likely accumulate positive equity in a relatively short period of time.
Looking for your first house?
3beds/2 baths completely updated 142,500
2beds/2.5 baths tuck-under garage, LEED certified 177,000
3beds/2 baths, needs some TLC, 89,000
Cost vs. Value: Remodeling Projects
3 December 08The coveted Cost vs. Value issue of Remodeling magazine is out!
St. Louis is considered to be in the West North Central region along with Iowa, Kansas, Minnesota, Nebraska, North Dakota and South Dakota. Two figures are given for MO: St. Louis and Kansas City. The numbers below come from the St. Louis section.
Attic to Bedroom
Job Cost: $54,112
Value at Sale: $38,568
Cost Recouped: 71.3%
Midrange Kitchen Remodel
Job Cost: $22,128
Value at Sale: $16,463
Cost Recouped: 74.3%
Upscale Bathroom Remodel
Job Cost: $55,035
Value at Sale: $38,707
Cost Recouped: 70.3%
Where to get the most bang for the bucks?
Average return on a wood deck in our region: 76.1%
Average return on fiber cement siding: 79.9%