Opinion needed on Riverfront Castroville Home/Land in Flood Zone

San Antonio, Texas
Buying & Selling Real Estate
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Opinion needed on Riverfront Castroville Home/Land in Flood Zone

Seini Vi
Member since 2023 · 1 post · 0 votes

I have 6 acres of riverfront property in Castroville, TX less then 2 mins from town square. Some of you may know that San Antonio is expanding towards Castroville with all the home communities coming down 90 and the town is now having a large home community built in it starting at 450k+. My land has the Medina River flowing through it.  It is in the flood zone, has a 1000sqft home built on concrete slab, a garage, horse barn, water well, and unattached building which was being converted into airbnb. I've had 2 real estate agent groups come and both suggest different starting sell price: one at 500k, the other at 200k.

Both groups were interested in partnering up to turn the property into an airbnb rental investment.  

We've had 2 locals offer 120-180k, their given reason was "no higher because it's in the flood zone and isn't worth anything".

There is also another property very similar also in Castroville TX  (8 acres, river front, 1200 sq ft home in the flood zone) that is listed for 1,200,000, though that's been sitting for nearly 3 yrs now.

  A neighbor whom I share an easement with (who is also in flood zone with riverfront ) rents his property out for party celebrations/camping/etc. and is currently building a 500k home on his property.

I would be happy at selling at $650,000 to an investor or to anyone really. My thoughts are the town is growing and if there are people willing to buy one of the new houses in the home developments for 450k then a 6acre home on riverfront for 650k isn't so bad is it? The property can be compared to Gruene River Road in New Braunfels.  

An investor could put cabins on the property or a home builder could put at least three more houses on the property and sell them individually as river front homes. 

I've tried to reach out to land acquisition at some of the known home building companies in San Antonio but having to find contacts & being sent straight to voicemail seems to be an never-ending loop. 

I'm in need of opinions. Am I delusional for thinking I could sell for this price or am I being reasonable ? 

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  • KC Pake
    Investor · Orange Park, FL · Member since 2019 · 173 posts · 108 votes
    2y
    Quote from @Seini Vi:

    I have 6 acres of riverfront property in Castroville, TX less then 2 mins from town square. Some of you may know that San Antonio is expanding towards Castroville with all the home communities coming down 90 and the town is now having a large home community built in it starting at 450k+. My land has the Medina River flowing through it.  It is in the flood zone, has a 1000sqft home built on concrete slab, a garage, horse barn, water well, and unattached building which was being converted into airbnb. I've had 2 real estate agent groups come and both suggest different starting sell price: one at 500k, the other at 200k.

    Both groups were interested in partnering up to turn the property into an airbnb rental investment.  

    We've had 2 locals offer 120-180k, their given reason was "no higher because it's in the flood zone and isn't worth anything".

    There is also another property very similar also in Castroville TX  (8 acres, river front, 1200 sq ft home in the flood zone) that is listed for 1,200,000, though that's been sitting for nearly 3 yrs now.

      A neighbor whom I share an easement with (who is also in flood zone with riverfront ) rents his property out for party celebrations/camping/etc. and is currently building a 500k home on his property.

    I would be happy at selling at $650,000 to an investor or to anyone really. My thoughts are the town is growing and if there are people willing to buy one of the new houses in the home developments for 450k then a 6acre home on riverfront for 650k isn't so bad is it? The property can be compared to Gruene River Road in New Braunfels.  

    An investor could put cabins on the property or a home builder could put at least three more houses on the property and sell them individually as river front homes. 

    I've tried to reach out to land acquisition at some of the known home building companies in San Antonio but having to find contacts & being sent straight to voicemail seems to be an never-ending loop. 

    I'm in need of opinions. Am I delusional for thinking I could sell for this price or am I being reasonable ? 


     Hi Seini,

    Your situation with the riverfront property in Castroville, TX presents an interesting scenario, especially with the growth in and around San Antonio. While you have a potentially valuable piece of land, there are several factors to consider, particularly the implications of being in a flood zone.

    Firstly, it's positive that the area is developing, with new home communities emerging. Your property, with its existing structures and riverfront location, could be highly appealing. However, the flood zone designation is a crucial aspect. Properties in flood zones are subject to FEMA regulations, which include restrictions on building and remodeling. For instance, any new construction or substantial improvements must be done in a way that minimizes flood damage. This often means elevating buildings above the base flood elevation level. These regulations could impact the feasibility and cost of developing the property, whether for personal use, selling, or renting.

    The wide range in valuations (from $200k to $500k) you received from real estate agents needs careful consideration. This variance might reflect different interpretations of how the flood zone impacts property value. The lower offers from locals citing the flood zone as a detractor are indicative of the challenges in pricing such properties.

    Comparing your property to a similar one listed at 1.2 million is useful, but its prolonged time on the market suggests overpricing, possibly due to the flood zone challenges.

    Your target selling price of $650,000 might seem reasonable given the growth prospects of the area and the property's attributes. However, this figure should also reflect the limitations and additional costs imposed by FEMA regulations on flood zone properties. Prospective buyers or investors will consider these when assessing the property's value and potential.

    Good luck & keep us posted.

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  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    2y

    Hey @Seini Vi, if you have a regular property in a city that fronts a drainage ditch and is in the flood plain, YES that drops the value WAY down. BUT YOUR property fronts a desirable river. ANY property that fronts a river is going to be in the flood plain. Thats ok. 

    Now if all of the property is in the flood plain, thats probably not good either. You have to have some land that is higher elevation so that you could build newer buildings. You can not put septic tanks below flood plain so there is no permanent building in the flood plain unless you put it on stilts or raise it up significantly. 

    I would say that the property is definitely worth more than 200k, but probably not $1mil unless that building is bringing in a bunch of money everyday.

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