ellypage2001, Home Buyer in Saint Louis, MO

Purchasing a historic house to rehab in the Clayton University area

Asked by ellypage2001, Saint Louis, MO Wed Apr 17, 2013


I have been looking at some historic "gut job" houses near Forest Park area for around the 30K market to rehab, rent and then sell in a few years.

Is this a worthwhile investment? I see that houses a couple of streets away can sell for 400K? How much does this usually cost? What sort of rent would you expect for a 4 bedroom 2200sf? We would be likely using all/mostly cash to purchase and renovate

Help the community by answering this question:


You really don't want to push yourself out of the rental market because if you go over a certain amount in renovation. You would have to command a certain amount to recoup your investment. Run you comps and look to resale immediately if the numbers make sense. I say this because there is nothing like buying "new". After doing your rehab then renting for a year or two. You look to repair and refreshen a few things that you already fixed.
0 votes Thank Flag Link Sun Apr 21, 2013
It is amazing that "a few blocks" can make such a difference in price. Don't expect that you can increase the value of a home beyond the neighborhood value, no matter how great your rehab may be. Historic tax credits can help, and sometimes there may be other neighborhood preservation credits, but expect gut rehabs to cost at least $100/sf. A scrape & paint might be as little as $25/sf. The idea of restoring a grand home to its original condition is very romantic but unless you are a very experienced investor and builder, I'd recommend starting with something a little less complicated. You may find that buying 2-4 family investment properties in thriving neighborhoods will provide better cash flow over time.
0 votes Thank Flag Link Fri Apr 19, 2013
Andy Sims gives good information in his answer. Also, be sure to fully understand what homes in the block you're considering are selling for after rehab so that you can make a wise buying decision and figure out how much of an investment in time, money and material you should make. St. Louis' home values, like many metro areas, change block by block so get a good, local Realtor who can give you sound advice. Best of luck!
0 votes Thank Flag Link Wed Apr 17, 2013
It depends on the property and what you plan to do to it in the way of repairs. I routinely work with investors buying property with cash and rehabbing for resale. I'd be more than happy to go over some properties with you and determine their viability. Fell free to call or email. My info is on my trulia profile or you can go to http://www.andysimsrealtor.com.

Have a great day!
0 votes Thank Flag Link Wed Apr 17, 2013
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