San Antonio, TX · Member since 2013 · 65 posts · 13 votes
I'm in San Antonio, but would like to explore areas where getting at least 1% rule is the norm rather than the exeption.
I'm looking to expand outside of San Antonio, my main objective is growing a buy and hold rental portfolio.
I'd like to stay under 100k for now due to wanting to do all cash at the moment (although I'm not opposed to hardmoney or partnership).
I'm trying to avoid areas with a high turnover. I'm open to any state as long as I can make the right team connections. I've so far heard good things of Florida and Oklahoma.
Hey @Ricardo G. I have to agree with you on being at the top of the market. I just wrote about that on one of my latest blog posts(see my profile for all the info). Even though we are getting ready for a little bit of a slowdown, I think SA is going to be one of the least affected. I am NOT looking to hold anything right now. In fact, I have sold my last couple of properties in the last 12 months with owner financing.
The only thing is that its slowing everywhere. All those secondary and tertiary markets are going to go back to being sleepy places where there is no appreciation and you will not be able to sell. Just my thoughts.
I have been in San Antonio for most of my life and seen how things happen around here. I think this is the place to be. You just might have to switch from landlord to rehabber to noteholder and back and forth at the right time of the market cycle. That is being a savvy investor. You dont have to change markets, just your position in the market.
Welcome aboard and congrats on your start. I commend you for the logic in your planning. Good for you and you are not asking for too much. I like the fact that you are looking for other areas that would fit your needs instead of being annoyed for the lack of opportunity in San Antonio. You mentioned FL and OK. Both places (and most of the 48 other states) has potential. Start to narrow your search to 3 counties in each state. Call agents and property managers in those areas. Tell them what you are looking for and your plans. Make sure to call more than 1 per county. Once you decided on a county, then your work can start.
San Antonio is one of the best markets in the state and Texas is one of the best markets in the country, with many out of state investors looking here specifically. Are you having trouble finding deals from an inventory perspective or numbers perspective?
I get the "1% rule" is a common guideline to follow with income-producing properties and the market may be tightening a little bit making it harder to find "1% deals", but there are plenty out there. Also, there are other factors to consider as well, such as the rapid rate of appreciation most of San Antonio is experiencing.
@Brandon Miller Perhaps it was a little bit of miscommunication on my part. I can see the properties that meet the 1% rule, but in my experience they've mostly been rough neighborhoods. I myself have a property that gives me an easy 2% in 78207. But SOME of that area is usually full of trouble tenants without stable income trying to get away with free rent.
And in part I don't even judge them because some of those houses are falling apart and the landlord is not doing anything to provide a safe house for them either, But I know I try to do everything I can to make sure that my tenants are comfy.
Perhaps it's just me but everything has slowed down as far as it being such a hot sellers market just a tiny bit. Houses are not selling for more than the asking price and they have been sitting on the market for longer, and this was not the case not too long ago. I might be a bit more ignorant than a lot of you guys real estate-wise, but in my marginal experience, this might mean that we're at the peak, or about to turn around and go into a small recession, Although I wouldn't call it a significant recession by any means . But time will tell and I'm not willing to buy something that is a tight 1% when Maybe in a year it will be a looser. Now if my market is very similar to the rest of the 49 States, then I might be living in a dream world. but I was just asking to see if I could do better somewhere else.
Just to be clear on everything, If I can find a better market with better properties for the same amount of money that I could get a tight 1% here in San Antonio I would be willing to look into it.
I have seen and heard a lot of good things about El Paso being the next thing in Texas if you are looking to stay in Texas. Phoenix, AZ and Charlotte, NC are also really good markets for your out of state ventures.
@Brandon Miller Thanks, I just came back from a trip to El Paso about a month ago. This was my first time there and was very pleased with what I could see as far as property costs.
Hey @Ricardo G. I have to agree with you on being at the top of the market. I just wrote about that on one of my latest blog posts(see my profile for all the info). Even though we are getting ready for a little bit of a slowdown, I think SA is going to be one of the least affected. I am NOT looking to hold anything right now. In fact, I have sold my last couple of properties in the last 12 months with owner financing.
The only thing is that its slowing everywhere. All those secondary and tertiary markets are going to go back to being sleepy places where there is no appreciation and you will not be able to sell. Just my thoughts.
I have been in San Antonio for most of my life and seen how things happen around here. I think this is the place to be. You just might have to switch from landlord to rehabber to noteholder and back and forth at the right time of the market cycle. That is being a savvy investor. You dont have to change markets, just your position in the market.
As @rickpozos stated above. Money can be made in all parts of the cycle. You just have to adjust, and sometimes that includes not only strategy, but markets as well.