1% Deals in San Antonio?

Question

I am looking to invest in SA, and have been told by local realtors that I should discard the 1% rule as it is not realistic/ not the right thing to focus on. I find this strange because I have found many deals on the MLS that appear to break the 1% rule. I would prefer to break 1%, if it is doable in a decent B/C neighborhood with good fundamentals.

Are these realtors blowing smoke, or is there something I am missing? If 1% isn't possible, which target should I be aiming for?

Aaron Burton · Answer

That's interesting. What do you mean by B and C class areas? I'm new RE investing and not familiar with this classification. Do you have some examples that can give me some context?

Stone Saathoff · Answer

I've sold at least 15 properties this year alone that meet that metric, maybe more, it isn't something I track too much.

Some realtors can be a little pessimistic. The deals are out there.

James G. · Answer

@Leopoldo Vazquez. Sending you a request to connect. Would love to learn more.

Polo Vazquez · Answer

Yes !% rule can definetely be done. It will mostly be in C and D areas though, shoot for Cs and you will be fine. Keep in mind, San Antonio is full of pockets. One street will be B+ neighborgood and the next street over can be a C-.

Kyle Moore · Answer

@Tyler D'Alessandro I've been diving into the San Antonio market lately, starting to get familiar with the neighborhoods. Identified several properties that would meet the 1% rule, however from my perspective they were all D-class areas. It seems as though there is potential in the lower end of the market, not sure I personally want to manage in those areas.

James G. · Answer

@Estrella Carolina Mckinney. Could you suggest neighborhoods where you are targeting 1% deals?  My understanding is the SA market is very hot right now.

Estrella Carolina Mckinney · Answer

@Tyler D'Alessandro totally doable al around SA. Don’t believe what one or two Realtors say. Research research research and do your homework. There is plenty of 1% here in SA. Another strategy would be fo find homes with a secondary dueling. A on the record second structure on the property and get with the city to make sure it’s legit. As long as is on the record BCAD prior to 2010 I believe it will be grandfather as a ADU Or there are areas in SA where duplexes were also grandfather. For example I got a SF in Alamo Hights and it had a secondary structure and I was ready to put a strong case to get my secondary unit approved in order to get me a new Address but it turns out that my area had a long-standing grandfather duplex situation. So I would also concentrate on these types of homes and you need to make sure they have their own way in and out to include a strategic parking space. I got lucky both the big house and little house have their own separate entrances and driveway. Best of luck and 1% rule is easy to find here in SA.