San Antonio Investing

8 Replies

Hey BP,

Looking for insight on San Antonio for investment opportunites.  We mainly focus on Austin and surrounding areas, but have started looking into SA.  I have clients and partners looking for apt complexes and multifamily, flips, and owner finance homes, so I am trying to figure out if this is a good market for us to deploy capital.

What are some of the up and coming areas?  

Any insight is much appreciated.

I would recommend coming down to @Chad Clanton meet-up on the first Wednesday of the month.  There are usually investors that are playing in just about every area of the city with different investment strategies.  I think in person conversations than one on a forum (although I do love the BP stories) will serve you better to get reliable insight to the market down here.

San Antonio has a few areas being revitalized, most popular are would be "south town". Its San Antonio's very own little Austin. Over the last few years a ton of improvements have been made and property values continue to rise. However, as far as residential real estate investing is concerned, the rest of the city is doing just fine. My broker just opened up an office in Austin with expectations to achieve the same success we're having here in San Antonio. Whether you're investing in Austin or San Antonio, you're making money if you're connected to the right people.

Tim Landy I own a construction company here in San Antonio and we do turn key rehabs for investors. I can say that properties are being purchased to either flip or rent, all over town. We are fixing properties in areas that I would not think people would invest in. I talk with numerous investors here in San Antonio and they all agree that San Antonio is the place to make money. I am now really considering investing in residential real estate myself, just trying to learn as much as I can and make wise decisions.

Thanks for the responses.  We were in SA yesterday and it was interesting to see different areas and the opportunities around town.  

What are some of the main drivers bringing people to SA?

Tim,

I understand on the north and west sides there are a lot of distribution and data center companies continuing to move to San Antonio for the low cost living and quality of life issues.  That story seems like it has legs.  Amazon is a big name moving there as an example.  The jobs / wages are mid-market and hence believe the focus for young families will be a plus for housing, especially folks looking for renting of at multi-family (duplex, fourplexes), etc. that are more affordable entry points.

Hello @Tim Landy  I partner with a lot of investors from Austin.  Here is the insight I can offer.

As far as multi-families goes in San Antonio the return on investments you get here are not as lucrative as SFR, because SA is a great rental market people are asking way too much for multi.

As far as flips go, it REALLY depends on the area, and by area just going one street over comps can drop $50K+. The "hottest" areas right now for flips are Dignowty, Beacon Hills, Olmos Park and few other historic areas have been the ones with the most appreciation. Other than that its more of a gamble when it comes time to flip. Keep in mind this is not Austin so you don't keep it weird with the flips here.

I agree with @Tim Macy the group that @Chad Clanton puts together is a great source of info. 

If you have any other questions let me know.

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