The Biggest Mistake New Investors Make in St. Louis (And How to Avoid It)
We talk to new investors every week. Some of them have cash. Some of them have ambition (and a credit card). All of them are fired up and ready to “find a good deal.”
Here’s the problem: most of them wouldn’t know a good deal if it smacked them in the face.
The #1 mistake? Paying retail.
For rentals, they’ll buy something that barely cash flows — then wonder why they’re stressed when the AC dies.
For flips, they’ll pay too much up front, underestimate repairs, and then pray appreciation saves them.
(Hint: this isn’t Phoenix. STL doesn’t do 20% appreciation just because Zillow says so.)
How to Avoid It
There’s no magic formula. But here’s the Moe Bros cheat sheet:
Buy with spread. If your deal only works when everything goes perfectly, it’s not a deal.
Budget for real repairs. Add 20% to whatever number your contractor gave you. Trust us.
Run the rents, not your hopes. Check what units in that neighborhood actually lease for. Not what you wish they did.
Know your exit. Flip? Rental? Wholesale? If you don’t know how you’re making money, you’re not.
We’ve made this mistake ourselves. Paid too much. Hoped for the best. It’s a fast way to learn humility (and how expensive a “cheap” rehab really is).
The Bottom Line
St. Louis is a great place to invest. But only if you play the boring, steady numbers game. If you’re buying retail and banking on luck, you’re not investing — you’re gambling.
And casinos have nicer carpet.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered financial, investment, or legal advice. Always conduct your own due diligence and consult with qualified professionals before making investment decisions.
