Deal of the Week: Analysis of a 2-Family Building in St. Louis, MO
In this week’s episode, Ben Williams dives into an exciting property in his hometown of St. Louis, Missouri. Located in the vibrant Dutchtown community, this two-family building at 3458 Alberta Street is a great opportunity for real estate investors.
Property Highlights
- Location: Dutchtown, a community known for its ongoing improvements and resident satisfaction.
- Structure: A charming red brick duplex with units on both the first and second floors.
- Condition: Recently renovated, featuring new carpet and paint, although the drop ceiling might not appeal to everyone.
Financials
- Listing Price: $150,000, which could be on the high side for the area.
- Rent Potential: Estimated at $750 per unit, though comps suggest $625 is more typical.
- Cash Flow: At a reduced offer of $110,500, cash flow could be around $450 per month, with a potential exit yield of $102,000.
Analysis
Ben emphasizes the importance of setting aside funds for potential issues common in older buildings and highlights the positive cash flow potential, despite a cash-on-cash return slightly below his target.
Conclusion
This property offers promising cash flow and appreciation potential, making it a viable option for investors who appreciate the Dutchtown community’s character and ongoing development.
