Thoughts on Denver Heights - San Antonio

[Kyle Zochert]

Hi Guys - 

I have a deal under contract in the Denver Heights neighborhood of San Antonio, Texas.  I was going to buy the house as a cash deal three months ago, but there were federal tax lien problems that needed to be resolved.  Long story short, I invested the money elsewhere, now I'm left figuring if the house is worth on a hard money loan.

The purchase price is $60,000, for a 3/2, 1700 sqft. (including a 425 sqft. second story loft.  The layout is a little funky and it needs a little bit of everything: foundation, electrical, plumbing, and roof.  All in I am probably looking at $34k in repairs.  I could potentially convert to a 4/2 or a 5/2 with the loft.  Those are the "knowns" if you will.  

Here are the unknowns: I am guessing the rents will come in at $1,000-$1,100, and maybe an ARV of $100,000-$115,000. Prices have been increasing in the neighborhood, but I don't really know if I'm better off sitting this one out or what.

Does anyone have experience in the Denver Heights neighborhood or East-Side San Antonio that could shed some light on whether this is a good area for appreciation or let me know if my numbers are off?

Thanks for the help,

Kyle

[Rick Pozos]

For that part of town, you should really hang out a little. Within a couple miles there are some homes in the $150 per sf range, new construction and rehabs, but there are also ghetto type of blocks where lots of people are just hanging out all day. Its a very diverse area.

Be careful!!!