Tower Grove South is South City’s owner-occupant premium lane — brick four-squares and townhouses between Tower Grove Park and Chippewa, anchored by the Morganford business district, where renovated product sells to buyers who want finished historic brick within a walk of the park.
Hard money loans in Tower Grove South fund estate acquisitions, knob-and-tube rewires, and 7–14 day close windows on stock that banks won’t touch until the mechanicals are done.
Metro: St. Louis hub · Missouri fix and flip · Compare: Bevo Mill · Rankings.
Who invests in Tower Grove South
| Profile | Playbook |
|---|---|
| O-O flipper | Estate four-square → finished resale at $230K–$340K |
| Premium holder | Renovated two-family near the park; strong tenant pool |
| Historic-credit rehabber | Qualifying gut rehab with 25% state credit modeled |
| Graduating operator | First premium file after a clean Bevo exit |
The buyer pool here pays for finish quality and park proximity — rental-grade rehab underprices the exit.
2026 economics
| Asset | As-is | Rehab | ARV / rent |
|---|---|---|---|
| Brick four-square O-O flip | $120K–$220K | $50K–$90K | $230K–$340K resale |
| Two-family near park | $130K–$210K | $55K–$95K | $250K–$330K; $2,300–$3,000/mo gross |
| Townhouse/row value-add | $110K–$185K | $45K–$75K | $210K–$290K resale |
Worked example: Morganford four-square O-O flip
Acquisition: $168,000 estate sale — knob-and-tube, dead boiler, original kitchen
Rehab: $74,000 — full rewire, HVAC conversion, kitchen/bath, refinished millwork, tuckpointing
All-in: $242,000
Hard money: 85% LTC · 10-day close · 10.25% IO
Sale: $305,000 at 9 months — O-O buyer paying for park walk and finished brick
Net spread (est.): ~$22,700 after carry and 8% selling costs
Worked example: park-adjacent two-family hold
Acquisition: $142,000 brick two-family two blocks off the park — occupied down, vacant up
Rehab: $61,000 — up unit full renovation, mechanicals, tuckpointing, common-area restore
All-in: $203,000
Stabilized rent: $1,450 + $1,275 = $2,725/mo gross
Appraisal: $272,000
DSCR refi: 71% LTV → Missouri DSCR exit with certificate and leases documented
Historic-district and credit scope
Portions of Tower Grove South sit within national-register historic districts. Two consequences:
- Opportunity — qualifying rehabs can claim Missouri’s 25% state historic tax credit (stackable with the 20% federal credit on income-producing property). On a $74K qualifying scope, that is real money — but SHPO sign-off must precede work.
- Constraint — standards-compliant windows, masonry, and porch details cost more than builder-grade swaps. Price the delta before choosing the credit path.
Decide credit-versus-speed at LOI. Retrofitting the paperwork after demo does not work.
Mechanical stress test
| Item | Cost band |
|---|---|
| Full rewire (knob-and-tube) | $12K–$22K |
| Boiler-to-forced-air conversion | $10K–$18K |
| Tuckpointing (full elevation) | $8–$14/sq ft |
| Standards-compliant window restoration | $650–$1,200/opening |
Budget 10%–15% contingency — four-squares hide their surprises behind plaster.
Block walk protocol
- Park distance in actual walking minutes — the premium decays fast past Grand
- Recent sold comps on the same block face, city-side only
- Mortar, parapet, and foundation from the alley
- Historic-district boundary check on the exact parcel
- Lead paint on pre-1978 — EPA RRP-certified GC on any rental exit
Comp discipline
- Bevo Mill solds do not support TGS pricing — and TGS premiums never import to Bevo files
- Shaw and Tower Grove East are separate premium files across the park — adjust, don’t import
- St. Louis County solds never touch city files
- Within TGS, park-side blocks and Chippewa-side blocks price differently — half-mile rule within corridor only
Carry math
$242K all-in at 85% LTC and 10.25% IO ≈ $1,760/mo interest. Nine months to sale ≈ $15,800 carry — the finished-product exit absorbs it; a rental-grade rehab in this corridor does not.
Occupancy and exit sequencing
The City Certificate of Inspection applies here as everywhere in the city — schedule at rough-in. On O-O flips, buyers’ lenders will also flag open permits at closing; close every permit before list.
Buyer pool and days-on-market reality
The Tower Grove South end buyer is specific: two-income households buying their first or second house, paying for finished brick, park access, and the Morganford restaurant spine. That buyer uses conventional or FHA financing, reads inspection reports closely, and walks from flips with cut corners on mechanicals. Finished product priced to the corridor’s sold comps moves in two to five weeks; over-improved or under-finished product sits. Model days-on-market honestly at 30–45 days plus a financed buyer’s 30–40 day close, and keep two months of IO in reserve for the gap between list and fund.
First-time sponsor path
Tower Grove South is a second-file corridor. Prove the model on a Bevo Mill bungalow first, then bring the finish-quality budget here. Under-capitalized premium flips are the most common South City failure mode.
Loan terms (2026)
| Parameter | Range |
|---|---|
| Rate | 8.99%–13.5% IO |
| LTC | Up to 90% |
| Close | 7–10 days on clean title |
Tower Grove South — corridor and basis file gates (2026)
TGS files fail on rental-grade finish against an O-O exit, un-walked park-distance assumptions, and masonry guesses. The corridor pays for quality — underwrite like it.
- Basis: $120K–$220K four-square/two-family — match scope to $230K–$340K ARV on park-side sold comps
- Comps: TGS solds only — Bevo or county imports invalidate the file
- Mechanical: Rewire + HVAC before cosmetics — $22K–$40K combined line is normal
- Exit: O-O resale via fix and flip Missouri or park-adjacent hold → Missouri DSCR
Bridge 8.99%–13.5% IO · STL rankings · (833) 264-7776.
Analyzing a Tower Grove South four-square or two-family? Pre-qualify for hard money or call (833) 264-7776 for proof of funds before your next South City offer.
Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.