Want to start investing in San Antonio TX

7 Replies

Hi BP!

I'm in my mid 40s. I am an FTE working in technology management for a large financial services company. I'm also a real estate broker on the side but willing to give that up. Ultimate goal is to work for myself in 10 years or less.

Recently, a family knocked on my door and made me an offer on my permanent residence. They saw the Zillow listing from 2015 when they were looking at another listing on my street. I'm closing in October or November depending on when they sell their house (Sonoma Ranch so it should sell quickly).

I am joining BP for guidance on how to maximize the ROI on the equity from my hike as well as how to use my VA benefits to house hack while we search for our next permanent residence. I have many questions and would like to start networking with San Antonio investors.

We think the plan is to find an off market 3/2 in a class A neighborhood in the NW San Antonio area and use my VA loan benefits or Assumption? We'd live there long enough to meet owner occupancy rules and find another if rates are still low and use VA again.

I’d like to use as little of the equity from my current home because I’d like to keep it liquid in case new deals come.

I’ve passed on a few deals before because I didn’t have cash.

I’d really like some help marketing and understanding all the types creative financing to scale.

Looking forward to networking.

Shawn Chervinskis

@Shawn Chervinskis Congrats! Sounds like you've got some exciting stuff brewing.

I'm no expert on it, but I believe you can get a VA loan with no money down. It's one of the few loans out there with such generous lending terms so bask in your advantage! If you pay down 5%, it does reduce the VA loan fee though, so if you can manage that amount, it will save you money.

Generally if you're getting an off market deal on the north west side of San Antonio, or any side for that matter, it would be tough to get it with a VA loan. Most distressed sellers who are taking a hit on price will want cash with little contingency, VA loans aren't a match for this.

Exp: Have closed several off market deals on that side of town.

Hey @Shawn Chervinskis if you want to work for yourself in 10 years, you probably want to get your side business up to speed so that in 10 years it makes close to what you make now. Maybe focus on the real estate sales more to get the cash. It sounds hard to believe that you live in an almost half a million dollar house, but you have no cash to do a deal. Sounds kinda strange to me, but then again, I live WAY below my means.

The Frugal Real Estate Guy in me says that maybe you need to downsize a little from the 3000+sf house on half an acre and maybe live in a 2000sf house in Sonoma that costs 200k less. NOW you have 200k to invest in real estate. There are lots of sub 300k houses that are nice within 2 miles. 

I am only saying this because you said you did not have cash to invest.

@Stone Saathoff thank you stone. I completely understand that. I Plan to use my VA to house hack a place that my wife can tolerate for a couple of years and the liquid cash from the sell of of my permanent residence to close on other deals.

Selling my permanent residence opens a few options for us.

@Rick Pozos thought I replied but can't find it. This is exactly the plan. I will have cash when we close on my house, get in to a rental with my VA loan and house hack it for a while. Meanwhile, look for ways to use the cash from my home sale to redistribute to a rental portfolio or flips. I'm pretty in tune with San Antonio real estate market.

Biggest gap I have is identifying off market deals and closing on them.

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