BRRR Strategy- San Antonio Texas
Hey BP,
So I'm taking the leap to purchase my first multi-family unit in San Antonio. After reading tons of forums and having conversations with a few Real Estate agents/investors I feel like I'm ready. My 5 year plan is to purchase one 2-4 unit and execute the BRRR method. Ultimately, rehab the units, and pull equity after 2 years to purchase another property. Ideally, if I can cash flow a few hundred dollars a month after pulling equity that would be my goal. My budget is 175k-225k all in. I plan on putting down 25%.
The areas of San Antonio that we're recommended to me are the following:
Converse, Selma, and Universal City.
What are your thoughts on these cities based on my 5 year plan?
Most Popular Reply
@Brandon Carlson Those areas you are looking are showing some renewed growth, especially with the 1604 project underway. You are looking at an area that feeds to the I-35 corridor very easily, and they are also supported by military bases (Randolph AFB and Fort Sam) within close proximity. There are some big variances with the neighborhoods. I drove through an area of duplex homes and it was pretty rough. Not scary, but there were some neglected properties for sure. It actually got me interested in doing some mailing campaigns where you are looking to see what I can acquire for cash flow.
I have used a Wholesaler in town and had a pretty good experience with them. Their fee for one of my deals was 19k, that was after their original deal fell through where they would have made 33k (a pretty big mark up). They did the marketing and brought me the deal, so it really was a win-win situation. I get a bunch of investment opportunities from them daily/weekly, some are better than others.
@Leopoldo Vazquez I agree with you, there are many SFR illegally converted. I focus on the zoning first and look to see what properties meet the zoning to construct an Additional Dwelling Unit or allow for MFR already. I have been really focused on only a few zip codes to ensure I know the areas very well. I did six months of research and a lot of driving through neighborhoods before I got my first SFR on a MFR zoned lot.
Best of luck!