IS $250k viable for short term rental in San Antonio?

Question

I have been thinking about the possibility of a short term rental in San Antonio as I'm familiar with the area. I wasn't sure if getting a property worth $250k (whether buying one in good condition or fixing one up to an ARV of $250k) is viable? I realize that this price is probably below the top spots for it but figured it may still be viable but wasn't certain. Thank you for any information.

Laura Winters · Answer

I got my first STR at $150k. Not everyone can start with a $1M condo or cabin. It is at least 10 times harder to run a cheap property than a nice property but you will learn super fast as almost every booking will have some issues and you will be booked every day. I had and learned possibly every Airbnb scenario from that property. (Drug party, orgy, auto theft, high school party, prostitution, funeral -yes someone actually threw freaking funeral at my Airbnb) Running a nice property after that is so easy. My cash-on-cash return on that property for the first year was over 150%. Anything is possible so good luck!

John Underwood · Answer

Look in MLS and Zillow to get a good idea what properties that would work for you are selling for.

Look at the sold prices not just the asking price.

Collin Hays · Answer

You are not going to be marketing to luxury travelers for sure. But neither is Dollar General and I think they are doing quite well.

Andrew Steffens · Answer

Everyone wants to own a Four Seasons and nobody wants to own a Holiday Inn but there is a market for both. Holiday Inn is more recession resistant. I own 2 luxury accommodation but more budget friendly. What matters is the individual property. Find some that you can afford and see if they will be profitable in your market.

Andrew Kubik · Answer

I started out renting out the other side of my duplex on ABNB. The entire building is probably worth $500K. It helps build a "proof of concept" so that banks will lend you for bigger projects in future he future. You're going to make mistakes when you first start out. Keep those mistakes small.

Ryan Brooks · Answer

Thanks everyone, I am open to using a manager or self managing, I think it depends on the amount of revenue. I tend to be a budget traveler myself so I definitely understand there's a market for places that aren't luxurious, it doesn't bother me at all to market to the more budged minded traveler.

I'm familiar with the downtown area and nearby, southtown would be great but it seems there isn't too much for my price range right there, the area east of downtown, on the other side of the 37 freeway seems to have a lot more in my range, I've driven around there before, the area seems a bit rough around the edges but I noticed some things like a co-working spot so it seems like it has some businesses moving in.

Laura Winters · Answer

You have to self manage run down properties. You will get a horrible review with someone else managing (or possibly shut down) since they can’t put the effort cheap house requires . It is not a choice but must. If you can’t do it by yourself, don’t even start it.

Todd Goedeke · Answer

@Joe S.check into triple net leases at a 10 cap. That is, 10% times market value = yearly lease payment. It allows you to lock in a cash on cash return of 10-15%+. Leasee pays for taxes, maintenance , furnishings and insurance.

Justin Brickman · Answer

Yes absolutely. Please make sure you check with city zoning to make sure it will be allowed before making any offers. Feel free to message me and I can verify for you if needed.

No reason to go over $250K even if you have more. That's a great budget for a STR here in San Antonio

Joe S. · Answer

Do you manage for others?

IS $250k viable for short term rental in San Antonio?

IS $250k viable for short term rental in San Antonio?

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