Austin/San Antonio Newbie Investor Seeks Rental Property & Team

[Abhishek Agrawal]

Hello BP Community,

I'm Abhi, a newbie investor eager to dive into the exciting world of real estate! My sights are set on acquiring my first rental property in the Austin/San Antonio area, aiming for cash flow and a 7-10% yield on my down payment.

Here is my initial plan based on the learnings I have done so far:

• Property Type: Single Family/Condo/Apartment also open for other suggestions
• Strategy: MTR/LTR 
• Budget: $300k - $400k
• Credit Score: ~750
• Down Payment: 15-20%

Where I need help of this awesome BP community:

• Guidance & insights: 
• I'm open to any advice and tips from seasoned investors and experts in the Austin/San Antonio market.
• Experienced team: 
• I'm actively seeking investor-friendly professionals, including lenders, agents, property managers, tax experts, inspectors, and lawyers. Ideally, I'd find a team willing to not only help me find the perfect property but also mentor me during my real estate journey.

If you have:

• Any recommendations for lenders, agents, property managers, etc. in the Austin/San Antonio area who specialize in working with new investors
• Valuable insights or advice for navigating the market as a newbie
• Experience you're willing to share (success stories, lessons learned, things to avoid)

Please don't hesitate to reach out! I'm eager to learn, connect, and build a strong foundation for my real estate future.

Sincerely,

Abhi

[Conner Olsen]

Quote from @Abhishek Agrawal:

Hello BP Community,

I'm Abhi, a newbie investor eager to dive into the exciting world of real estate! My sights are set on acquiring my first rental property in the Austin/San Antonio area, aiming for cash flow and a 7-10% yield on my down payment.

Here is my initial plan based on the learnings I have done so far:

• Property Type: Single Family/Condo/Apartment also open for other suggestions
• Strategy: MTR/LTR 
• Budget: $300k - $400k
• Credit Score: ~750
• Down Payment: 15-20%

Where I need help of this awesome BP community:

• Guidance & insights: 
• I'm open to any advice and tips from seasoned investors and experts in the Austin/San Antonio market.
• Experienced team: 
• I'm actively seeking investor-friendly professionals, including lenders, agents, property managers, tax experts, inspectors, and lawyers. Ideally, I'd find a team willing to not only help me find the perfect property but also mentor me during my real estate journey.

If you have:

• Any recommendations for lenders, agents, property managers, etc. in the Austin/San Antonio area who specialize in working with new investors
• Valuable insights or advice for navigating the market as a newbie
• Experience you're willing to share (success stories, lessons learned, things to avoid)

Please don't hesitate to reach out! I'm eager to learn, connect, and build a strong foundation for my real estate future.

Sincerely,

Abhi

If you're looking for a 10% CoC you'll likely be doing a STR. The problem you're going to run into is that STR's in Austin in the 400k pricepoint are in the suburbs and far from the city and are very plain. You need something to stand out to make a good return on an STR. San Antonio might allow you to get more bang for the buck in terms of property. When you're looking at homes, target homes with no HOA, a backyard to add a pool, fully updated, game room potential, and close to popular attractions.

[Abhishek Agrawal]

Hi @Conner Olsen,

Thanks a ton for your response! I understand 10% would be more on aggressive side, least I am looking for is better returns then current CDs which are offering almost 6%. 

Yes I also think with my budget may be San Antonio would be a better fit. Thanks a lot for your suggestions on what I should look for in a house, really appreciated!

Cheers,

Abhi

[Conner Olsen]

Quote from @Abhishek Agrawal:

Hi @Conner Olsen,

Thanks a ton for your response! I understand 10% would be more on aggressive side, least I am looking for is better returns then current CDs which are offering almost 6%. 

Yes I also think with my budget may be San Antonio would be a better fit. Thanks a lot for your suggestions on what I should look for in a house, really appreciated!

Cheers,

Abhi

One thing to keep in mind, STR incomes are not guaranteed. We have a STR in Tenessee that was projected to do 24% CoC, last year we were at 3%. If consistent cashflow is your goal for an STR major amenity upgrades are what is going to make or break your listing!

[Abhishek Agrawal]

Quote from @Conner Olsen:

Quote from @Abhishek Agrawal:

Hi @Conner Olsen,

Thanks a ton for your response! I understand 10% would be more on aggressive side, least I am looking for is better returns then current CDs which are offering almost 6%. 

Yes I also think with my budget may be San Antonio would be a better fit. Thanks a lot for your suggestions on what I should look for in a house, really appreciated!

Cheers,

Abhi

One thing to keep in mind, STR incomes are not guaranteed. We have a STR in Tenessee that was projected to do 24% CoC, last year we were at 3%. If consistent cashflow is your goal for an STR major amenity upgrades are what is going to make or break your listing!

Got it, thanks! What are your thoughts on MTR?

[Conner Olsen]

Quote from @Abhishek Agrawal:

Quote from @Conner Olsen:

Quote from @Abhishek Agrawal:

Hi @Conner Olsen,

Thanks a ton for your response! I understand 10% would be more on aggressive side, least I am looking for is better returns then current CDs which are offering almost 6%. 

Yes I also think with my budget may be San Antonio would be a better fit. Thanks a lot for your suggestions on what I should look for in a house, really appreciated!

Cheers,

Abhi

One thing to keep in mind, STR incomes are not guaranteed. We have a STR in Tenessee that was projected to do 24% CoC, last year we were at 3%. If consistent cashflow is your goal for an STR major amenity upgrades are what is going to make or break your listing!

Got it, thanks! What are your thoughts on MTR?

I love MTR, it's my primary investing strategy. 10% CoC is tough to get that to work in Austin right now. I'm seeing 1-4% CoC on the deals I analyze.

[Abhishek Agrawal]

Quote from @Conner Olsen:

Quote from @Abhishek Agrawal:

Quote from @Conner Olsen:

Quote from @Abhishek Agrawal:

Hi @Conner Olsen,

Thanks a ton for your response! I understand 10% would be more on aggressive side, least I am looking for is better returns then current CDs which are offering almost 6%. 

Yes I also think with my budget may be San Antonio would be a better fit. Thanks a lot for your suggestions on what I should look for in a house, really appreciated!

Cheers,

Abhi

One thing to keep in mind, STR incomes are not guaranteed. We have a STR in Tenessee that was projected to do 24% CoC, last year we were at 3%. If consistent cashflow is your goal for an STR major amenity upgrades are what is going to make or break your listing!

Got it, thanks! What are your thoughts on MTR?

I love MTR, it's my primary investing strategy. 10% CoC is tough to get that to work in Austin right now. I'm seeing 1-4% CoC on the deals I analyze.

Great to know that you have expertise in MTR. How abt San Antonio or any other near by city for that matter, Is there anything that I can change in my plan to move the needle from 1-4% CoC to 4-7%?

Abhi

[Justin Brickman]

San Antonio for cash flow and appreciation

[Abhishek Agrawal]

Quote from @Justin Brickman:

San Antonio for cash flow and appreciation

 Thanks @Justin Brickman for your suggestion.