Archive for the ‘investment spotlight’ Category

1411 Hebert: Buy it Now or Regret it Later!

18 September 09

Continued from: I Wish I Had Bought Back Then…

To recap, people who bought in up and coming neighborhoods, before they were THE place to live made a wise investment. Granted they weren’t thinking “this is going to be a wise investment.” Instead they were probably just looking for a place they loved at a price they could afford.

If you are looking for a place to love, as in capital L.O.V.E., the kind of home that would make your friends green with envy, the kind of place you see only in magazines, this is IT!

INTRODUCING … 1411 Hebert 63107, the newest listing in Old North St. Louis

Historically preserved and modernly updated, this house has to be experienced. While you may get a sense of this home through the pictures, you really must walk through the doorways and stand in the rooms to appreciate the time, planning and execution of the details.

3898629300_0ff3d758c4

From the street , it is impressive with pieces of the original wrought iron fence and perfectly symmetrical proportions. New Douglas fir doors have been milled to match the originals. The slate mansard was completely rebuilt in 2007 and the painting and tuck pointing on the facade are recently completed projects.

3898159878_f755061b90

Once inside, the details become overwhelming. The walnut hand rail on the second floor main staircase was hand milled by a New Zealand stair expert to match the original.

3897472999_15b6fa34ff

The refinished original pine floors span the entire level and the pull the whole space together. All the pine baseboards, moldings, trim and 4-panel doors have been stripped and refinished.

3897389471_182f7a858c

The first floor layout is wide open allowing light from the huge windows and side door to flood the room. The front room is an example of the simple elegance that pervades the home. Nothing is out of place, every door handle, every hinge belongs and is exactly where it should be, in exactly the right style, shape and finish.

3897469543_c09b2fe4c1

The kitchen is exceptionally well planned and is unique to the home. While it speaks to a different era with the reclaimed Geneva metal cabinets and oak counter tops, it belongs here just as if the original builder had done it himself. Through the cut out (which is bar height and designed to function as a breakfast bar with stools on the opposite side) is the office/den area and adjacent is the side porch which is really just a bright extension of the kitchen as the 11′ glass and wood doors open onto a private outdoor dining area.3898176010_5c6a2a5c12

The cabinets were reclaimed, refurbished then professionally painted by an auto body repair shop. This kind of creativity and thoughtful design is priceless.
3897399347_5b6a6461d1

All of the private areas are upstairs. Below is a picture of the back hallway (w/ cove lighting) as the wall wraps around the bathroom conforming to the shape of the original 6′ claw foot tub inside. The skill and patience it took to create this elegant detail is evidence of the quality throughout the entire restoration.3898192508_c83e9fd254

There are three large bedrooms, each with interesting details. The front two bedrooms are featured below. They are separated by fully functioning restored pocket doors. Both have elegant mantles in pristine condition and the middle room has a door to the side balcony which has fir tongue and groove flooring and Soulard style railing.

3898220854_2ec48d83d0

Even the privacy fence is a master piece! The rear patio, arranged in a herringbone pattern, was built with bricks from the original walkway and is lined with salvaged limestone window sills.

3898241566_4eae325b55

These were just a few of my favorite shots. See entire gallery here.

3897450767_9fb1dd5495

So, you don’t have a quarter of million dollars? No problem! 1411 Hebert is listed at $169,900.

Check any of these links if you want to know more about who lives in the area and what’s going on in terms of grassroots rehabbing or large scale urban revitalization.

http://onsl.org/
http://www.northcityfarmersmarket.org/
http://ourlittleeasy.blogspot.com
http://web.me.com/heidisever/3Walls/The_Progress/The_Progress.html
http://1318hebert.blogspot.com/
http://theurbanstudio.blogspot.com/

New Listing in Southampton: 5328 Devonshire

3 April 09

Reasons to BUY this house:

LOCATION: Southampton is one of the most sought after neighborhoods in the city. How do I know this? It says so on their home page. Southampton was rated as one of the top residential choices for families in the 25-35 age bracket. But there’s more, this house is near the intersection of Devonshire and Macklind which, in my mind, is the best neighborhood mainstreet that we have in the city. Grand is great and Morganford is marvelous but Macklind actually bridges the two parts of Southampton and makes this little neighborhood feel like a village complete with its own economic center. All within walking distance of 5328 Devonshire are Home Eco Green General Store, Big River Running Company, Mackland Avenue Deli, Manzo’s Imports and Deli, Murcoch Perk, and Onesto Trattoria

Interior Finish Quality: Not everyone is going to love this house. Clean lines and modern finishes aren’t for everyone. That big blue LazyBoy recliner is NOT going to work in here. If you are attracted to a lofty feel but not really interested in the condo fees or the cost of upgrades, then you are going to LOVE it. If you like to cook and entertain, then the layout will impress you. The kitchen has a perfectly designed work triangle, plenty of prep area and a peninsula with barstools so even those who aren’t great with knives can be part of the action. (Also the double drawer dishwasher is very cool). Want a spa inspired bathroom? Take your pick, there are two! Worried about utilities in a big brick house? Well this house has zoned HVAC and lots of extra insulation. Looking for 2 sleeping areas and a space for office/informal family room/play room? It’s all upstairs. I could go on, but the photos tell the story.

Value: Below is a CMA report from the St. Louis MLS. Based on a map search of the Southampton area, the numbers show that Devonshire is priced to SELL. Of the five other move-in ready homes currently active in the neighborhood, Devonshire is priced at 189,900 meaning it is about $9500 below the average list price. Additonally if you look at the SOLD values you can see that the average SOLD price of a 3 bedroom 2 bathroom home in the Southampton neighborhood is $204,278 which means Devonshire’s list price of $189,900 is an amazing value. Also note that the AVERAGE price per square foot of the ACTIVE listings is $123.01 while 5328 Devonshire is priced at $108 a square foot. No need to make low-ball offers here, this seller has priced according to the current market.

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 08

For 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 08

That 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?

3003 Minnesota

3beds/2 baths completely updated 142,500

3103 Magnolia

2beds/2.5 baths tuck-under garage, LEED certified 177,000

3247 Morganford

3beds/2 baths, needs some TLC, 89,000

Investment Property in the Central West End

20 December 07

772618.jpg

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.

New Listing in the Shaw Neighborhood; MLS Exempt

5 October 07

3917 Shaw in St. Louis

Kitchen of Shaw Home

07.jpg

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!

Great Income Producing Investment Opportunity Near Hampton Village

31 January 07

feb07_property.jpgFor 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