The original St. Louis Real Estate Blog, est 2004 with Darin "Sid" Cameron, CRS.
Understand the St. Louis housing and real estate market better. Sid is a licensed real estate broker in Missouri.
The St Louis Agent Team of RE/MAX Properties West
 | For Agents | Forum | Bookmark Site
Subscribe to RSS Feeds - Click Here!
Bookmark and Share
Chat with an Agent!
Real estate questions?
Want to see a home?
 Click for Live Chat or
Call: (314) 598-4040
 Email this Article! Email this article d Discuss this article d Printer friendly page with resizable text
 Woes of Rental Properties
By: Kimberly Cameron
Mon, Jan 10th, 2005 12:42 am

For those that don’t know me, I have a background in investment properties. I’ve worked on projects from trailer parks in Alton to new construction in Town and Country- and a lot of rehab work in between! At the same time, for several years I managed and owned rental properties. As a result, I get asked for advice all the time on what the secrets are to investing in rentals.

This week I saw an article in Stltoday.com (Post-Dispatch) that made me decide I should write about this topic.

Over the summer I sold off my last two rental properties (a 12 unit building in South St Louis City and my duplex in University City). At the same time, my primary client I managed properties for also sold off the bulk of his properties. Now part of why I sold mine has to do with personal reasons unrelated to real estate. However a small part of it also had to do with low mortgage rates.

What do interest rates have to do with rentals? When rates get low, it means more people are buying homes, and less are renting. Because rates have been low for so long, there is now a glut of empty rental properties in the U.S. causing apartment complexes to slash rent, offer free months with signed contracts, and other bonuses just to fill up empty units. As an owner, all that eats into your profitability- but the alternative, a high vacancy rate, isn't all that appealing either.

If you want to see the Post-Dispatch article, it was titled: “Low mortgage rates still plague area's apartment owners, developers” By Jack Naudi ff the Post-Dispatch, Published: 01/07/2005.

Although I don’t think its all doom and gloom (there are areas like University City that will always be flush with renters thanks to Washington University), it’s definitely become critical to make sure you know what you are getting into up front because the margins for error aren’t what they used to be.

If you’ve been thinking about getting into rental properties, or other investment projects, feel free to contact me and I’d be glad to talk to you about my experiences.

[ Next Article: Mortgage Interest Rates Slip ]
[ Previous Article: Foreclosures UP in St Louis ]


Search this Blog:


Darin 'Sid' Cameron, CRS

Contact Me on Facebook!

 Contact me on LinkedIn!

Follow me on Twitter!
Darin "Sid" Cameron spent 15 years working in the technology industry which in 1998 relocated him to St. Louis. In 2004 he took over web development tasks for Kimberly's real estate team and later became the full-time Marketing and Operations Director in 2005. In 2011 Sid launched two brokerages, The Realty Store, Inc. and Realty Referral Partners, Inc, while continuing to perform marketing and operations for Kimberly's team. Sid holds a real estate broker's license in Missouri, CRS certification and was the first CyberStar in the St. Louis area.
Certified Residential SpecialistCyberStar!
Follow me on Active Rain!


All Blog Articles XML/RSS

Add to My Yahoo!


All Categories
 News  Things to Do  Real Estate Trends  Misc Stuff  Selling a Home  Calendar of Events  Home Repair  Buying a Home  Interest Rates and Financing  Investment Real Estate  Credit Reports and Safety  Our Website and Services  Government and Legislation  Internet Resources  Living in St. Louis  Home Improvement  St Louis Housing Market  Real Estate Statistics  Home Safety  Blogging In General

RE/MAX Properties West
Kimberly Cameron, Team Leader
RE/MAX Properties West Direct: 314 598-4040
16497 Clayton Road Office: 636 532-5900
St. Louis, MO 63011 Fax: 800 573-1985
Email Us Here! Toll Free: 800 573-5276
Equal Housing Opportunity
The St. Louis Agent Team of RE/MAX Properties West
     
 
Realtor