San Antonio Distressed House Market Update
We've seen the market for distressed houses in our city change a lot in the last year. Prices are up 30-50% where we buy, including zip codes 78210, 78201, 78214, 78207 and 78212.
The median price we are paying for our houses is $55,000, and north of downtown, up to $65,000. Most of the houses we buy are 2/1s and 3/1s. This is up from $30,000-$45,000 or so a year ago.
Other big change is that with our owner finance houses, we usually had our investors simply resell them owner finance without repairs. The end blue collar buyer would fix it up. That has changed now - folks are pickier as they are making more money.
So, we tell our investors to make 5-10k fixes in the houses to make them easier to sell. This allows us to resell owner finance in 1-3 months in most cases. Plumbing, electrical, foundation, paint in and out, and resell owner finance. Over rehabbing in our blue collar market is a mistake.
But one thing has not changed - after those repairs and the house is resold, the investor doesn't have to maintain it. A nice plus of owner financing.
It's been interesting to see how much the market has changed this quickly!
Other thoughts about the SA market and TX generally?