Cash Flow vs. Location: The Truth About St. Louis Rental Investing

When it comes to investing in St. Louis rental properties, one of the biggest decisions every investor must make is this: Do you prioritize cash flow, or do you pick the best location and focus on long-term appreciation?

In this breakdown, I compare two very different rentals to show exactly how these strategies play out in the real world.

On one side, we have a 5-bedroom home in Manchester, one of the most desirable A-class areas in St. Louis County. This neighborhood offers top-tier schools, low crime, and long-term family tenants who take great care of the home. Cash flow is lighter, but appreciation and exit strategies — like fix-and-flip or rent-to-own — make this a strong long-game investment.

On the other side, we step into Tower Grove South, a popular and walkable part of St. Louis City known for historic brick buildings and strong rental demand. The duplex featured in this video brings much higher cash flow, easier entry price, and steady rental demand from young professionals and students. Appreciation is slower, but your monthly ROI is immediate.

So which one is better?
It depends entirely on your goals.

• If you want steady monthly income, the Tower Grove South duplex is the clear winner.

• If you’re focused on long-term wealth building, the Manchester home gives you stability, appreciation, and stronger resale potential.

Both strategies work — the key is choosing the one that fits your investment goals, your risk tolerance, and the level of management you want to take on.

If you’re looking to invest in St. Louis or want help analyzing neighborhoods, cash flow, and long-term rental performance, reach out anytime. I help local and out-of-state investors find the right properties and manage them with confidence.

👇 Watch the full video below to see the side-by-side breakdown and my final verdict.

Written by Ben Dao (St. Louis Real Estate Ninja)