Rented 4-Plexe in Saint Louis MO

Update Aug. 2nd 2021:

• The seller at has lowered their price from $275,000 to $247,500 – a $27,500 price drop compared to other recent purchases made to similar properties on this street. 
• They lowered it to give the buyer room for additional updates (all AC & Furnaces were replaced within the last 5 years) and turnover for higher leases.
• The big news here is that the existing rents are super low. All long-term tenants that converted to month-to-month.
• The area has good rent potential and strong demand.
• The Seller decided early on not to raise the rents in order to keep tenants in place and the noise level down.
• A new owner will have the ability to implement all new leases at the current market rate of $675.
• Simply Do It’s local property manager manages two similar buildings on this street and reports no issues.

IMPORTANT

1. The asking is per building (per 4-plex). 
2. Actual address: call/email/ask us.
   1. Any rental and lease info has not been verified yet – the seller will only be able to provide such info after offer acceptance (we are still trying to get some of the info sooner rather than later)
3. About the area – see PM’s notes below. Generally speaking, this is a good city and location with good schools. The street is subpar to the greater area and nearby streets have mobile homes (doesn’t look like a mobile home park)
4. The street has 20+ similar 4-plexes buildings.

What’s the Opportunity

1. Rented 4-plex – generating from day 1.
2. With the right management and attention, each property can be improved by adding some restrictions and guidelines making the tenants more complicit with proper and better care of the building, its appearances, and presentability.
3. Some improvements to the exterior (landscaping) and interior can help increase the rent and improve cash flow.

Recent Street Drive-through by SDI’s Agent

SDI’s Local Agent’s Feedback

You have to go through the mobile home park to get to the buildings. Which is in disrepair with lots of junk and has been on the market for 2-3 years.
But, the buildings themselves are fine.
Just not great driving through a bad mobile home park in order to get to it.
The street does look cleaner (than google street view) – the buildings look fine. But, driving through a run-down mobile home park is not ideal!

SDI’s Property Manager’s Feedback

This is in general is a good area.
My assistant property manager, says she has family in the area and has an idea about the area.
She said the area is ok.
They will never be high-income properties, but they could be stable income with the right tenant mix and building care.
The more of these units we control the better you can control the neighborhood so more is better.

Info Provided by the Seller (unverified yet)

The big news here is that the existing rents are super low.

All long-term tenants that converted to month-to-month. But we already know the rent potential and demand for the area.

The Seller decided early on not to raise the rents in order to keep tenants in place and the noise level down.

A new owner will have the ability to implement all new leases at the current market rate of $675.

Not a motivated Seller, but interested in selling now due to the recent sales prices of other quads on the street.

We are asking $275,000 list price based on the easy conversion to market rent, not the current rent rates of the building. Strategic buyers know these units don’t come up for sale very often and Jefferson County, in general, is very limited for rental inventory.

Renters cut grass w/ owner’s mower and maintain grounds in exchange for a rent discount.

A new main front door was ordered for the building.

All units except B are newer windows. Windows for B are onsite to be installed.

All A/C and furnaces have been replaced within the last five years.

Inspections: Inspections are mainly for the buyer’s knowledge only. Please advise your Client to make their best offers from a primarily “As-Is” perspective.

FAQ

• Can I buy with a mortgage?
  • Yes, and we have preferred lenders for you to use if you wish.
• Do you know the condition of each unit internally?
  • Not yet.
• Do you have a local property manager we can use?
  • Yes, we sure do.
• Can I buy cash?
  • Yes, of course.
• Can I buy more than 1 property?
  • Yes
• Is there a way for me to buy all and get financing for all of them under 1 mortgage?
  • Generally speaking yes, and we have a lender who may be able to do it.

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.