Seguin, TX - Thoughts on duplex new builds?

Question

BP Family,

I’m looking at some new builds in the Seguin, TX area. They are duplexes and each with 3 bedrooms and 2 bathrooms. Current purchase price ranges between 439-450k. Currently rental pro forma states it will rent for $1,500 each (3k total). Wanted to see if BPers here can help offer some insights for Seguin area based on below?

1) How is Seguin? Is it more working class or middle class demographics?

2) Is Seguin a safe place to raise a family?

3) Do you see population booming and how is the local job market / economy?

4) Do you view this city with upside?

5) Public Schools look decent, but any concerns here?

Account Closed · Answer

@Allen Wu I live in New Braunfels and have rental properties in New Braunfels and Seguin, which is just 13 miles from New Braunfels. Seguin has a vast mix of working class people and it’s growing fast just like all of central Texas but personally I would RUN from a $450,000 duplex in Seguin. Please come to town and drive around before you do this. The appreciation in Seguin is nowhere near what it is in Austin or New Braunfels. Are you talking about the ones on Lucille street? Best of luck.

Account Closed · Answer

@Allen Wu I found them. They are beautiful but it's all about location. Plus $7,400/year taxes and $895/yr HOA fees. This reinforces my original statement to RUN. You are correct, buy two SFH. There are areas in Seguin that you could buy two SFH, but not in town where these duplexes are. Look at Arroyo Ranch off of 725 just East of town. This area is booming with new construction. I just finished a full gut job close to this area and we rented the house out in 48 hours for $1,675/mo. There are new builds all around the area too that might fit your goals but prices are going up so fast that you wonder when the music is going to stop.

Linda Hastings · Answer

@Allen Wu I invest in Seguin and echo Account Closed’s advice to stay away from those duplexes. There was a similar thread several months ago that you might find useful: https://www.biggerpockets.com/...

Doug Spence · Answer

@Allen Wu Seguin is a pretty small town, so you might not get a ton of feedback on the forums here. I recommend reaching out to an agent and property manager in Seguin and ask those folks your questions. They are likely to be very optimistic about their town, so I would try to distinguish fact from their opinion on their feedback. Also, BP Insights might have some information, but  Seguin's population might be too small to be on BP Insights.

You can learn a fair amount about the area using Trulia and Zillow. The crime ratings and school ratings are usually pretty accurate and you should be able to get a decent idea of which areas are better and worse for crime and schools.

Best of luck and keep us updated on your progress!

Eric James · Answer

Do you really want to take a year to build and pay $450k for $3k/month in rent?

Nicholas Brumgard · Answer

@Allen W If you are uncertain about Seguin and know you will stay away from the duplexes. Schertz and Cibolo (Outside of SA, but not quite as high in price as New Braunfels) have great LTR potential due to their proximity to RAFB and even Ft. Sam. Happy to answer any questions you may have about the area.

Jarrod Covey · Answer

Hi @Allen Wu

Seguin is where a lot of people are fleeing to escape the growth happening on the 35 corridor. I grew up nearby in New Braunfels and extended family run Industrial related businesses in Seguin. The Industrials Industries account for the largest portion of the economy in Seguin.

There is noteworthy growth going on as well, in conversation with City Development reps they've noted a high number of building permits being submitted to the city. They also seem to be more willing to talk things through and reasonable than neighboring jurisdictions.

The best part about Seguin is you still have access to the Guadalupe and a small lake called Lake Placid.

Raj Janakarajan · Answer

I am in interested in learning about Seguin for multifamily investing.  From this thread, I understand to stay away from the new construction duplexes.  Can anyone in the thread share their current opinion on Senguin for multi-family investing?  I see a lot of new duplexes available for sale.

Raj

John Dawson · Answer

I am interested in potentially investing in the New Braunfels area. Any suggestions?

Jennifer C. · Answer

I am unsure about Seguin too. Having grown up in the surrounding area, I went there growing up, but it seems like the town has changed. In some ways, I see a lot of potential, but I am so much less familiar with the town now. I know that some people are being forced out of New Braunfels due to high prices of rents, but I only have a few data points, so it may not be a large trend. The edge of Seguin, as you are going out of the New Braunfels, is growing.

Seguin, TX - Thoughts on duplex new builds?

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