Cashflow in Carondelet Park
This 2-unit multi-family property was listed by Laura L. Singleton with Home Pro Realty (MLS: 22029738).
Often patients pays, and that’s exactly what happened with this cashflowing 2-unit multi-family property in Carondelet Park in South City St. Louis.
Andrew and Victoria were looking to expand their real estate portfolio with an additional multi-family property to add to their current multi-family which they house hack - aka live in one unit and rent out the other thus lowering their home ownership costs. This property was listed on the MLS for $196k and after utilizing our Rental Property Calculator we knew their was opportunity here. We calculated our offer number and submitted, but we were initially beat out by another investor… at first.
Running the Numbers
Plug these into our Rental Property Calculator to see the results.
Initial Repairs = $5,000
Rental Income = $2,500
Est Taxes = $1,302
Insurance = $1,768
Purchase Price = $205,000
Down Payment = 25%
Closing Cost = 3%
Interest = 6%
With real estate investment properties it’s common for investors to get properties under contract quickly. It’s also common for initial investors to back out of those deals, be it because of not being able to secure financing, backing out after inspections, or a variety of other reasons. Because we still wanted to be in the game we submitted a Back-Up offer on this property putting us next in line should the first deal fall through, which it did.
This 2-unit multi-family featured two 3 bed / 2 full bath units each capable of bringing in an estimated $1,250 in rental income. It was owned, operated, and sold by another investor who was cashing this property in for another project. While there were some minor maintenance repairs needed, and a new HVAC until to plan for, the bulk of the major upgrades were in place making this essentially a turn-key investment property.
After closing the deal both units were filled at market rental rates generating instant cashflow for Andrew and Victoria. In this scenario patience paid, and they now operate a great St. Louis real estate investment property.
If you’re interested in starting your real estate investment journey or looking to expand your portfolio Vatterott Realty can help you find and close deals. Whether it’s house-hacking or stepping to 4+ unit commercial investing we have the expertise and connections to help you ever step of the way.
Michael Jordan
St. Louis Real Estate Agent
Coldwell Banker - Gundaker
License: 2021003940
MLS ID: MICJORDA
michael.jordan@cbrealty.com
314.365.5856