This is a six unit building on Laclede with the Park East Tower to the east and Forest Park to the west. Each unit has approximately 1100 sq. feet, two bedroom and a finished porch off the kitchen.

Gross potential income at $900 a month per unit=$64,800.00 less vacancy at 5% ($3240) less yearly debt service ($38,328 with purchase price of $600,000, 20% down, 30 year fixed at 7%)

Gross Operating Income of $23,232.00

Net Operating Income of $13,232

Capitalization Rate of 2%

(Taxes are just under $4000, Insurance was estimated at $3000 Utilities and Misc estimated at $3000). To learn more about NOI click here or Cap Rate here.

This is a superior location close to the park, BJC, Metrolink, universities and all the amenities of the CWE. Seemingly you would have your choice of tenants. But a cap rate of 2% is terrible. Things to help ensure a better cap rate would be a lower sale price, a higher down payment or a better interest rate.

See more pictures and find out more about this listing at: shaw.dawngriffin.com

A couple years ago I helped my clients buy this house. Their intention was to rehab it and live there. In the middle of their renovation they were transferred to FL. They finished the renovation according their specs and it is beautiful. Recently I took the previous owner into see the difference and the only thing she said the whole time she was inside was “OH, MY GOD!” I’m not kidding, that’s all she said over and over for about a half an hour. The current owners have done everything the previous owner had ever wanted to do it. It required taking the whole place down to the studs and starting with the shell. It is really a very thoughtful renovation which I will not begin to describe. This one that you will need to experience. Seriously, even if you are not looking to buy a house come see this one. If you ever think you may want to renovate a city property, this house will should set the standard.

The sellers are realistic and understand the current market, they have priced it aggressively at 214,900. They are taking a loss but their goal is to sell it before winter. It is currently listed MLS EXEMPT which means you won’t find it on Realtor.com or any auto searches that your agent has you set up on. If you are an agent, we are cooperating with other brokers and are paying out 3% to a buyer’s agent.

There will be an OPEN HOUSE this Sunday 7 October, 2007 from 1-3PM and it will be right around the corner from the Shaw Art Fair on Flora. Stop by and check it out. You will be impressed!

Thank you Geoff for the pictures!

For those of you who do not subscribe to the ‘Investment Spotlight’ newsletter (subscription form is to the right), I am posting information on a great opportunity for some income producing property in a very desirable part of St. Louis City.

Find out more by clicking the URL below, and let me know if you’re interested in seeing this or other similar properties. While you’re at it, email me and I can get you started on your way to finding the perfect investment property.

View the latest Investment Spotlight:
http://www.dawngriffin.com/insidersguide/feb07/feb07.html