Properties under $75k in Austin and San Antonio?

Question

Both of these markets are rising, and seem expensive. What criteria should I look for in properties in this price range (other than cashflow)? Looking to hold and flip.

Joseph Weisenbloom · Answer

@Drex Tanner Not going to find anything under 75k in Austin. This market is hyper expensive. You can find plenty under 75k in SA but you need to be careful you don’t buy in a ghetto neighborhood. Investing in SA from afar is tough because things are so hit or miss it pays to be a local. Also operating expenses are significatly higher in Texas than other parts of the country. High taxes, expensive water, expensive insurance all cut into that cashflow.

That being said you may be suprised how much better properties are in your back yard. You can use your local knowledge to find good niches and boost profits by managing yourself.

Sid Jones · Answer

One additional note - most foundation work in Texas carries long or lifetime guarantees that are transferable with the sale of the property. I've bought two like that in Houston.  If you have to remediate a foundation after sale, a company with a transferable warranty will create some appraisal value for you and be attractive to a buyer.  Good luck!

Justin Kane · Answer

mesa and apache junction are still good places to invest, peoria, goodyear etc. or you can come here to san antonio :)

Hans Schmitt · Answer

Hey @Drex Tanner, I'm not a foundation expert, but about 80% - 85% of the homes I walk through have foundation problems. A quick search comes up with this explanation:

"90% of foundation problems come from the natural conditions in the area. Our loamy, clay soil has a high-elasticity, which means it moves with shifting temperature and moisture levels.

The soil under your home expands and contracts with shifts between hot and cold conditions and through dry and wet cycles — literally moving your entire home.

Your home was designed to handle this, but over time or after a big weather event your home can move beyond its limitations — that’s when you get foundation problems." -http://www.stableliftfoundationrepair.com/causes-of-foundation-problems/

Hope that helps!

Ronald Rohde · Answer

75k in austin might get you a shanty. Criteria would be livable, tenable condition.

Rick Pozos · Answer

What they said above, plus people tend NOT to put gutters on houses here in SA. Plus you have to keep the water away from the edge of the foundation. Also people tend NOT to water their yard causing it to get VERY dry and then we have storms that take soak in too much. Lots of dry, wet, dry, wet. It takes a toll on the foundation, especially if it is a slab.

Drex Tanner · Answer

Just curious why foundational problems are common in SA? That is very helpful information!

Hans Schmitt · Answer

$75k will get you some great fixer uppers in B- and C neighborhoods in San Antonio. Anything like that will require you to pay cash or hard money, since banks won't lend on properties like that. Just make sure to walk the houses before buying them, you want to make sure there are no huge foundation problems (this is common in SA) or other problems like mold that may mess with your returns.

Properties under $75k in Austin and San Antonio?

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