5 Tips to Investing in Single-Family St. Louis Rentals
Are you ready to diversity your portfolio? Many investors consider trying out St. Louis real estate investment at some point in time, but few actually take the steps towards making it happen. The real estate market can provide a good return-on-value and gives you some control over your investment when compared to stocks.
There are several ways to invest in real estate, but today we are going to focus on single-family St. Louis rentals. Here are 5 tips to help you start investing.
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Look at the current market and returns
When you are investing in a St. Louis rental property you want it to make money from day one of your tenant moving in. It is good to pay attention to the St. Louis area you are buying in because you don’t want it to be an area where people are starting to move out of and rent is dropping. At the same time, don’t automatically assume the investment will move in a positive direction.
Most real estate will increase in value over time, but when you are investing you want it to make you money in the present and not just the future.
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Create a realistic budget
Before you purchase a St. Louis property, you need to know that you can handle the expenses that come along with single-family St. Louis rentals and still turn a profit. You will need to budget for the regular maintenance tasks as well as the larger expenses. Eventually big ticket items like the roof and HVAC system will need to be replaced. These are expenses that you need to plan for.
You also want to build in a buffer to your budget. It’s nice to think that your single-family St. Louis rentals will always be rented, but you may have gaps between tenants. During this time, you still need to pay the mortgage and utilities and over all expenses. Plan accordingly.
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Remember it’s not going to be YOUR house
Buying a St. Louis house is usually an emotional process. However, when you are buying a St. Louis rental you need to remember that the house is not going to be yours. You need to think about what will rent well, not making sure you find a kitchen you love and a backyard that your children can’t wait to run around in.
Investment properties are all about the numbers. If the numbers don’t add up it doesn’t matter how “cute the house is”.
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Learn about the location
You need to know that the St. Louis area you are buying in is a place that people are looking to rent in. Some areas might be growing, but it might be more business and less residential. Or, there are some areas that do not appreciate single-family St. Louis rentals.
Location is the key to success in St. Louis real estate.
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Get a great handyman
If you don’t want to be running over to the house to fix every leak or change every filter when the time comes connect with a reliable handyman. You want to keep on top of the maintenance list and a handyman can help you do that. They can also assist you with getting the house ready to go again in between tenants.
The single-family St. Louis rentals world can be profitable for real estate investors. Remember to look at the property as an investment and not a “home.” Research the St. Louis area and be sure to build a solid team to help you execute on the maintenance of the single-family St. Louis rentals.