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Buying & Selling Real Estate

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Zac Celli
  • Sunnyvale, CA
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San Antonio Texas - Cash Flow Being Experienced

Zac Celli
  • Sunnyvale, CA
Posted Oct 3 2019, 19:51

Hey there BiggerPockets Community!

Hoping to find some good information on San Antonio Texas rent. Can anyone here tell me what kind of cash flow they are seeing for buy and holds in San Antonio. To my knowledge, it is a decent cash flow market with decent appreciation. I am not familiar with taxes or insurance of the area, and I don't know the tenant quality of the B or C class areas in the city that would affect monthly repair costs. To be more specific, assumptions below:

Property Value: $180,000

B or C Class Area 

Mortgage on the property of $135,000 (Either refinanced through BRRR or Retail Purchase Through Traditional Lending)

Managed by property management company

Net Cash Flow: ??

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Mike Chern
  • Investor
  • San Antonio, TX
25
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76
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Mike Chern
  • Investor
  • San Antonio, TX
Replied Oct 3 2019, 20:46

I have one 170k, rent 1350, cash flow 200. After property management, cash flow 100. Maybe I can charge 1400, but property tax up 7k * .03= 210 this year.

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Jason Lee
  • Flipper/Rehabber
  • San Antonio, TX
14
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25
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Jason Lee
  • Flipper/Rehabber
  • San Antonio, TX
Replied Oct 4 2019, 06:39

I have three properties in the C+ to B class neighborhoods that I have used the BRRRR strategy on so far. After all expense and accounting for maintenance, cap ex, vacancy, and property management, they cash flow about $50-100 per month. Property tax is definitely a limiting factor as the current property tax rate is around 2.9% right now for San Antonio.

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Brandon Kingcaid
Pro Member
  • Rental Property Investor
  • San Antonio, TX
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Brandon Kingcaid
Pro Member
  • Rental Property Investor
  • San Antonio, TX
Replied Oct 4 2019, 16:35

@Jason Lee Hi Jason, so you pulled out your original down payment and are netting 50-100/ month on top of equity gains each month? Would you mind sharing which zip codes?

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Rick Pozos
  • Wholesaler, Rehabber and Landlord
  • San Antonio, TX
2,421
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Rick Pozos
  • Wholesaler, Rehabber and Landlord
  • San Antonio, TX
Replied Oct 4 2019, 16:41

If your property is actually valued at 180k, the taxes will be about $5,000 per year or $400 per month. Insurance will probably be about $1800 per year or $150 per month. Add that to a mortgage payment of about $700 you get a mortgage payment PITI of about $1250. That means you have to charge about $1400 for rent.

What you need to do is find a house that should be worth 180k, but you are buying it for 160k or 150k. Or maybe 100k and YOU put in another 30k in repairs and then you can rent it for $1400. It is NOT about looking up to see what is for sale on the MLS and think you are going to make 200 to 300 per month cash flow. YOU HAVE TO FIND DEALS. Usually if you can find a deal pretty easy, its probably not a deal. Sorry but it is plenty of work, especially right now that we are at the top of the market.