Rental Property Investor · North Hollywood, CA · Member since 2014 · 8 posts · 2 votes
Hello!
I'm Nate. I work in Post Production in LA, but I'm interested in getting involved in real estate investing as well. I've been looking into it for a while and I think everything's finally come together for this to be the year!
Buy and Hold properties are my focus. The market I'm studying the closest right now is San Antonio. If anyone has any insight into that market or Texas in general, I'd love to hear it. I'll probably just be looking at single family residences or possibly duplexes at this point.
BiggerPockets seems like a terrific community. I'm happy to be here!
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
Don't get me wrong, I have nothing against REI in San Antonio, for San Antonions. I DO have something against newbies thinking that they can easily invest out of state and get those pro forma returns and cash flows that so many providers dangle in front of them ... it's just not that easy and you will likely never see those returns in reality, and by the time you realize this and try to sell, you will likely also realize that you over paid for the property because you are not familiar with the market and trusted somebody who was more interested in selling you something than getting you a good deal ... this is not what newbies want to hear and more often than not they ignore it and have to learn the hard way, but it IS reality. Ask me how I know this :)
If you really want to invest in San Antonio real estate, then my advice would be to move to San Antonio. Seriously, I'm not saying that to be mean. If you don't want to move, think long & hard about why you don't want to do that and you may start to understand why Cali is a desirable RE market, and then focus instead on opportunities in your own back yard (there are a ton of great ones). Good luck to you, whichever path you choose. I'm happy to help if you want advice on investing locally.
Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
10y
Nathaniel Sticco San Antonio is a good place to be for buy and hold! I'm always up for a video or phone call to talk more about what you want to do.
There is a wealth of knowledge on here when it comes to San Antonio, a lot of successful investors sharing knowledge.
Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
10y
if you are wanting to focus on multis then you may want to focus your marketing to reach the owners of these properties, identify why they might want to sell and help them achieve it
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
10y
Hi Nate, San Antonio is a great market for owning rentals. We have a townhome in North San Antonio that's been performing wonderfully. Feel free to connect with me here on bigger pockets and I'll send you more info.
Bob
I have been purchasing investment properties since 1998 and in San Antonio since 2007. By far San Antonio has been the better market for flips, buy and hold, and really anything real estate. With a robust growing economy, multiple military bases, and what seems like an endless amount of quality tenants competing for rental homes. I have many clients I work with from California that invest in San Antonio to buy and hold, and they have been very satisfied with their properties ROI and low vacancy rates.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
10y
Hey Nate! Very cool. I'm not far from you, just down in Venice.
Any reason for San Antonio in particular? Numbers are a bit of a stretch there, but possibly doable. The other Texas cities, well other than Austin at least, do have some cash flow but it's very much on the minimal side compared with some other markets. The prices in teh Texas cities have skyrocketed which has really squeezed on the cash flow.
Any reason for Texas in particular? What kind of returns are you hoping for?
Rental Property Investor · North Hollywood, CA · Member since 2014 · 8 posts · 2 votes
10y
Hi @Ali Boone! San Antonio seems appealing to me due to the growing population, healthy economy, and relatively affordable housing. I'd like to make around 0.9% of the home value in rent.
I'm Nate. I work in Post Production in LA, but I'm interested in getting involved in real estate investing as well. I've been looking into it for a while and I think everything's finally come together for this to be the year!
Buy and Hold properties are my focus. The market I'm studying the closest right now is San Antonio. If anyone has any insight into that market or Texas in general, I'd love to hear it. I'll probably just be looking at single family residences or possibly duplexes at this point.
BiggerPockets seems like a terrific community. I'm happy to be here!
Welcome and what was the Appeal of San Antonia to or for you
Contractor · San Antonio, TX · Member since 2014 · 24 posts · 5 votes
10y
@Nathaniel Sticco San Antonio cash flow in the first year can run anywhere from $150 - $300 with a 20% down investor loan, not including vacancy and repairs.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
10y
Have you found any properties yet that hit it? Remember to be careful in Texas using those kinds of rules....those rules don't account for property taxes and insurance and such, both of which are extremely high in Texas. So a property in TX that hits the 0.9% rule will make a lot less cash flow than a property in some other markets that hit the 0.9% rule...if that makes sense? So be sure you run all of those numbers out to make sure you know what that is getting you.
Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
10y
Hi Nate,
I think you have chosen a good place to start your investing. Turnkey solutions are available which is great for out of state investor. I have a new constructed duplex that will be ready mid-Feb can share info w/you via PM and an outstanding property mgt company that manages my multiplexes there so can be hands off. New properties w/solid cash flows and little need to worry about fixing anything for awhile. Not sure on Ali's comments and data but rents are up, millennials are moving in and economy is more diverse than ever. I can also share w/you my market analysis that I did on both Austin and SA for MF investing prospects saving you a bit of time.
Specialist · San Antonio, TX · Member since 2015 · 909 posts · 297 votes
10y
Cashflow is really whatever you are willing to work with .. I typically dont invest in anything without a significant return of 14% or more on cashflow and it must be in an upswing appreciation area
Have you found any properties yet that hit it? Remember to be careful in Texas using those kinds of rules....those rules don't account for property taxes and insurance and such, both of which are extremely high in Texas. So a property in TX that hits the 0.9% rule will make a lot less cash flow than a property in some other markets that hit the 0.9% rule...if that makes sense? So be sure you run all of those numbers out to make sure you know what that is getting you.
Ali, since the .9% factor is market based the taxes and insurance are already baked in. Of course the price to rent ratio has really nothing to do with profitability as it is more, as you should know, a marketing scam to entice novice investors to less profitable properties. Can you clarify what your point was?
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
Originally posted by @Account Closed:
Nathaniel how are you going to deal with the high Texas property taxes and the high CA income taxes?
He gets the best of both worlds ... and as an added bonus, he gets to miss out on SoCal appreciation that he would've had on his primary residence! Stay close to home, Nathaniel ... you'll thank me later.
Rental Property Investor · North Hollywood, CA · Member since 2014 · 8 posts · 2 votes
10y
@Account Closed - Not much I can do about the high CA income taxes regardless of where I invest (unless I change industries and leave). The property taxes will be something to keep in mind when calculating ROI, probably adding roughly 10% in the rent number required, which is significant.
@Account Closed - Not much I can do about the high CA income taxes regardless of where I invest (unless I change industries and leave). The property taxes will be something to keep in mind when calculating ROI, probably adding roughly 10% in the rent number required, which is significant.
@Nathaniel Sticco Well it's a lot easier to manipulate income than property taxes. The nice thing about CA property taxes is that everyone is treated the same except for the homeowners exemption that is only worth $70-100 anyway.
Texas property taxes are gone when you spend them and probably will keep rising. In CA your property taxes are capped so less rent will go to this category each year. How nice to be paying property taxes on a $500,000 property while collecting rent on a $1,000,000 property!
Real Estate Agent · Austin, TX · Member since 2015 · 25 posts · 4 votes
10y
@Nathaniel Sticco I think there is still opportunity in San Antonio. Austin not so much but I'm currently recommending Buda, Cedar Park, and other outlying areas of Austin where appreciation and demand is still high. If you think about searching is this area, just give me a shout!
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
Don't get me wrong, I have nothing against REI in San Antonio, for San Antonions. I DO have something against newbies thinking that they can easily invest out of state and get those pro forma returns and cash flows that so many providers dangle in front of them ... it's just not that easy and you will likely never see those returns in reality, and by the time you realize this and try to sell, you will likely also realize that you over paid for the property because you are not familiar with the market and trusted somebody who was more interested in selling you something than getting you a good deal ... this is not what newbies want to hear and more often than not they ignore it and have to learn the hard way, but it IS reality. Ask me how I know this :)
If you really want to invest in San Antonio real estate, then my advice would be to move to San Antonio. Seriously, I'm not saying that to be mean. If you don't want to move, think long & hard about why you don't want to do that and you may start to understand why Cali is a desirable RE market, and then focus instead on opportunities in your own back yard (there are a ton of great ones). Good luck to you, whichever path you choose. I'm happy to help if you want advice on investing locally.
Don't get me wrong, I have nothing against REI in San Antonio, for San Antonions. I DO have something against newbies thinking that they can easily invest out of state and get those pro forma returns and cash flows that so many providers dangle in front of them ... it's just not that easy and you will likely never see those returns in reality, and by the time you realize this and try to sell, you will likely also realize that you over paid for the property because you are not familiar with the market and trusted somebody who was more interested in selling you something than getting you a good deal ... this is not what newbies want to hear and more often than not they ignore it and have to learn the hard way, but it IS reality. Ask me how I know this :)
If you really want to invest in San Antonio real estate, then my advice would be to move to San Antonio. Seriously, I'm not saying that to be mean. If you don't want to move, think long & hard about why you don't want to do that and you may start to understand why Cali is a desirable RE market, and then focus instead on opportunities in your own back yard (there are a ton of great ones). Good luck to you, whichever path you choose. I'm happy to help if you want advice on investing locally.
This makes sense to me. Every market has good opportunities. The fundamentals for those cash flow and or appreciation factors exist before you invest. Now if you think locals are going to let some dude from Cali snag before they can great. From what I see that is not typically the case but it can happen. So you get a great deal let's imagine. Now you are in business from 1000 miles away. So I will bite David...what happens next?