HOW TO INVEST THE SLUMPING ST. LOUIS REAL ESTATE MARKET

There appears to be a catch 22 in real estate investing. When the market is up, and it is easy to sell homes, it is difficult to acquire bargain property. When the market is down, and it is easy to acquire bargain property, it is difficult to sell your investment. However, there is always opportunity for a savvy real estate investor. Right now there are some good deals, especially on single-family homes. A good strategy now is to look for single-family bargains that can be rented. Typically, when the sales market has a downturn, the rental market has an upturn. After all, people need places to live. If your property is rented for a good monthly rent, the income stream will increase the value of the home because an investor will pay for it. In this situation you are buying a home from the residential market, and then selling it on the commercial market at an increased value. Or you can keep the property as an investment and profit from the income stream. When the sales market picks back up, you can more easily sell the property to a retail buyer. Purchasing rental property in this way is also a good way to speculate. Purchase a rental property in an area you feel will appreciate. Then use the rental income to pay for your investment in interim. For a savvy real estate investor there is always an opportunity.