4 Questions (from a Newb in Texas)

8 Replies

Hello! 

My name is Jessica I live in Austin, Texas. My area is great for fix and flips BUT I'm interested in buy and hold. I was raised in San Antonio, Texas and I want to invest there in the next 3-4 months. I am looking for a 3/2 or 3/1 single family home for <150K OR a duplex for <200K for a buy and hold investment property that meets the 1% rule. I like the idea of doing a BRRRR. Did any of you done this with your first investment property? I am just conscious about biting off more than I can chew!!

Anyway, I have a few questions and GREATLY appreciate your insight. 

Here are my questions --

1. Whom do you trust to help find you good deals in San Antonio (preferably someone who understands investors)?

2. How do you run the numbers to analyze said good deal? Are you using the Bigger Pockets Calculators or doing your own thing?

3. Who do you use as a conventional lender? How quickly have they closed on a deal for you?

4. What San Antonio neighborhoods do you use for BRRRRing vs neighborhoods for fix and flips?

Thanks in advance!
Jessica

BRRRR sounds awesome (as it is when done correctly) but incredibly difficult to make work well and you typically need a large amount of capital to get it done. I think when you here experts talk about it, that it sounds easy and magical. I own 20 units and have not utilized this strategy to get there. I think you should master the basics before attempting an advanced strategy like BRRRR.

@Jessica C Molloy I have a great lender who understands investment property loans. PM is you want her info. We have seasoned for six months. Generally that's the rule I've heard regarding conventional loans lately. BRRRR works. Even when not perfect, we have purchased property with way less capital than we would have with a traditional purchase.

We don't have one source but we're on a lot of wholesale mailing lists. We do some marketing too. We like a lot of areas of town for sfr rentals. Preferably working class neighborhoods. One story over two. Small 3/1 or 3/2 over large with same room count. ARV under 160k or so. We find great long-term tenants in these types of areas.

I hope this helps a bit. Definitely would suggest you have some reserves before doing any strategy. But we like buy and holds in San Antonio. Best of luck!

Hi @Jessica C Molloy@Jordan Moorhead knows what he is talking about. Keep it simple on your first rental. There will be a big enough learning curve to keep you busy without all of the other BRRRR stuff.

I'm an agent in SW Austin. If you are near that part of town, I'd be happy to grab a cup of tea and show you how I integrate the BiggerPockets calculator into my deal analysis process.

@Jessica C Molloy

I have been analyzing deals for a client in San Antonio for the past month or so. At your price point I think a BRRR is absolutely the way to go. I'm not saying go crazy on the amount of rehab that needs to be done but there are upgrades and repairs that don't require much experience to complete because there are so many pros who do them that scare other people away. The two that come to mind here in Texas are foundations on a post and beam home and HVAC.

As for where to look in San Antonio, I'm intrigued by Denver Heights and the opportunity zones, especially for a buy and hold investor.  Keep in touch and let me know how it goes.

Hey @Jessica C Molloy ,

Welcome to SA, i'm biased but believe it is a pretty good spot!


1. If I answer this how I want to biggerpockets will likely delete my post...

2. I like the bigger pockets calculators.  I look at a lot of properties these days, and a lot of times its more informal than the calculator but still often fall back on the calculators.

3. Who do you use as a conventional lender? How quickly have they closed on a deal for you?

I have a conventional lender who just closed a deal for some clients of mine in 2 weeks.  It gets a bit crazy but it got closed.  With this lender I don't think i've ever had a conventional loan take more than a month, and even with out expediting its normally 3 weeks.

4. As far as neighborhoods, it really just depends.  Most fix and flips seem to be concentrated more toward downtown or at least inside 410.  There are some investors who like to stay away from pier and beam homes (which exist in alot of neighborhoods but mainly pre 1950's homes) so that can choose the area sometimes.   

BRRRR deals are hard to come by and everyone wants them. It's been increasingly difficult to find BRRRR deals that make sense all around. Some the ARV may be there for the Refi but the rent numbers aren't there. And there are some where rents make sense but Refi doesn't. I think for a BRRRR deal you have to find something with ARV around 150k or under. Our rents just don't get much higher than 1500 a month. It seems like at that price point folks would rather buy than rent.

If I can help, please hit me up.

@Jessica C Molloy welcome to investing in San Antonio! From personal experience, I think the BRRRR strategy is a great way to grow your rental portfolio if done correctly. It is hard to find a perfect BRRRR deal in San Antonio (no money left in the deal), however it is does significantly reduce the amount of capital needed to purchase buy and holds. I only left about $3k left in my last BRRRR deal. To answer your questions...

1. Message me if you want my honest opinion. I will say that the more investors you network with in San Antonio, the more it becomes apparent which sources can actually provide you good deals. 

2. I started off using the BiggerPocket's calculator, but I have recently began to use my own spreadsheet. It has a lot of the same elements as the BiggerPocket calculator, but it's easy for me to analyze and play around with numbers since I built it. Nothing wrong with the calculator on here though!

3. I have only used HMLs so far to finance my deals. If you need recommendations for good HMLs feel free to message me.

4. It really depends on what class of property you are looking for. There are a lot of lower class neighborhoods where the BRRRR strategy can work that are just west of downtown as well as in South San Antonio. Far West and North East San Antonio can be good middle class BRRRR neighborhoods.

Again, feel free to message me with any questions or if you are looking for recommendations. Good luck!