Fully Occupied 4-Plex Buildings in the St Louis Metro [Code: 318]

Quad (4-Plex) Investment Opportunity – St. Louis Metro

• Property Type: Quad (4-plex).  4 doors in one building
• Units: Each unit is a 2 bed /1 bath (Total building: 8 beds /4 baths)
• Parking: Street parking, no garages
• Neighborhood: B- area
• Price (Negotiating): ~$375K
• Rent: $850 (+/-) per unit (~$3,400/month total)
• Occupancy: Almost all units are rented per rent roll report (awaiting final verification)
• Year Built: ~1985
• Market: St. Louis

Key Insights & Performance

• Multiple quads available, currently mapping out which have been updated and when that was completed.
• Three Simply Do It investors purchased similar quads 4 years ago, when units rented for $750/month. This building is currently on the market for $420k and he has been getting many verbal offers for $375k.  
• Over the years, these properties have remained highly occupied with steady (yet not high rate) rent growth—a sign of strong rental demand.

Why Consider This Investment?

• Cash Flow: With 30% down at 6.875% interest, expect $500+ per month in cash flow.
• Strong DSCR Ratio: The cash flow supports healthy debt coverage.
• Immediate Income: Fully occupied, meaning rental income starts from day one.
• Professional Property Management: Our local agent has a good relationship with the current PM which will helps us obtain info about these quads (rarely do we have an “insider” access to such details)
• Proven Performance: Seeing these quads perform well over 4+ years gives confidence in the area’s stability and rental demand.
• Low Crime Rate:  While this area may appear to have higher crime rates, it does not.  These tenants are longer-term and reliable. Blue collar area. 
• Low vacancy:  During our research, we were only able to find 3 available units on the entire street.  This shows high demand for these units and solid rentability.

318: We had an insurance claim where the sewer line backed up into the lower 2 units. I had to move those two tenants out and completely renovated these 2 units. You will see an income line item of $50,000 in December, which is the claim money coming in. We did not count this as income on our taxes of course.

334: We had the sewer line backup for one bottom unit a couple years ago. As a preventative measure, we have that building cabled every 3 months. 

337: We also get regular cabling. We started that years ago but not 100% sure we still need it or why it started. I know before we bought 333 and 337, the previous owner had a utility company bust those lateral lines when they were doing work out there and he completely renovated all 4 bottom units (333 unit C and D and 337 Units C and D) just before I bought them (we believe in 2020).

333: Unit C, when the gutters are not cleaned on this building, the water runs over the edge of the gutters right outside this unit and during extremely heavy rains, it will leak into the unit. It has done it about 3 times in the past 3 years. We installed a downspout in that spot and do regular cleanings and have not had an issue since. 

333/337: The parking lots need repair. I would say it needs to be done in the next 5-7 years.

General Notes: 

The street is maintained by the property owners, not the county. There is no HOA on the street, so each owner just maintains the street in front of their building or there have been times where mass repairs were done and everyone pitched in.

Property taxes are less than $2,000 per building per year, which helps significantly with cash flow.

Vacancy: There are 2 vacant units right now within the 7-building offer.

If you factor in a rent of $850 on each of the 2 vacant units, the average rent across the portfolio is $825/month/unit. If you add in pet fees, we are closer to $870/month/unit.

These buildings are all electric so it is easy for tenants.  We believe all units are separately metered, so tenants pay that individually.

These buildings were built in/around 1985 so they are all PVC plumbing, copper wire electric, all built with forced air heating and cooling, which makes these buildings very easy to maintain.

I know there are plenty of other repairs we have made to these properties over the years and plenty of items that would come up during inspections, like all inspections, but these are a few of the important items you will want to know about. As far as a
list of repairs or updates per unit, I could not really begin to go through each unit and put this together. If I had to guess, 25% of the hvac units and water heaters are towards the end of their useful lives, half are mid way to newer and 25% are new. The roofs are in mostly good shape, but I am sure there is an old one or two. These buildings are quite easy to maintain as they are pretty simple units.

SDI suggests that all buildings have an additional square footage 2-D floor plan imaging done during inspection. This will provide accurate information for your purchase as well as being very helpful when selling the property. 

Disclaimer

Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.

The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.