Can one make New Braunfels as their main SFR portfolio city ?

Question

I am kind of newbie and I purchased my first rental in New Braunfels TX recently. Currently, I get zero cash flow on the property.

I noticed that successful single family rental investors choose a city, stick to it and keep expanding their portfolio in the city. Over the time their network, knowledge about the city grows and it becomes easier for them to triage the properties before they decide to purchase their next SFR.

I do want to expand more in NB but I am not yet sure if NB is the right place. I picked NB because it is in between two big cities Austin and San Antonio. I felt that we could get decent cash flow and good price appreciation eventually.

A few points against NB: NB is not a big city nor does it have any big employers. People has to move to NB and look for rental properties just because they like the city. I see the the city is giving lots of permits for new builders in NB which could increase supply of homes in the area.

Wondering what are your thoughts on NB. Do you think NB could be the city where one can expand their real estate SFR portfolio if so why do you think so.

Thank you

Rick Pozos · Answer

OMG New Braunfels has no big employers??? Are you kidding me?? https://www.businessinnewbraun...

For a small town of almost 90k people, you have Schlitterbahn, Wurstfest, great tubing, several large employers in Seguin and San Marcos. There is plenty happening in New Braunfels. Many of the employers are pretty good paying jobs also. Plus it is a bedroom community for San Antonio and Austin. People make pretty good money there which keeps things going.

Find some off market deals and you should be good. OR find some properties that are not completely turn key. YES, its a good place to be.

Jordan Moorhead · Answer

@Sunil Gadi I wouldn't if you can't find cashflow and just hope it comes with appreciation. That's not investing, it's speculating hoping it will be a good investment some day. What happens if it doesn't keep appreciating?

Troy Green · Answer

Hello Sunil,

I personally am a big fan of NB and think it has great long term potential. If you aren't cash flowing you may have spent too much for your current property in which case from now on I would highly recommend really crunching the numbers before jumping into your next investment home. Was this a home that needed any work or was this home ready to move in from day 1?

Ryan Kelly · Answer

@Sunil Gadi it's important to know what makes New Braunfels tick. The city has long been a regional tourist destination with the Guadalupe River and the Schlitterbahn waterpark. It also has a rich German history with many German restaurants and themed stores. It has been a common retiree destination because of it's location, but is a bit far out of the downtown San Antonio and Austin areas to be a great commuter location. Ask yourself - what do I want out of my portfolio? If it isn't producing the results you want, I'd pick another market.

Rachel Tripp · Answer

New B has tons of growth potential. However, it is a tricky town because it is a very tight knit community, and the process for getting STR approval can be frustrating. And, finding properties is a challenge because most never hit the market...it is very much word of mouth. However, when you can get your hands on one that is already zoned, the income potential is a no brainer. As far as commute, we are about 30 minutes to both Austin and San Antonio international airports.

Ryan Kelly · Answer

As @Eliott stated, I like Bell County a lot which includes Killeen, Harker Heights, Temple, and Belton. My preference is Temple, just one hour north of Austin. Much more affordable and a solid core of jobs, three hospitals, and direct I-35 access.

Dustin Blackmon · Answer

I think the key here is you bought a rent ready property. It sounds like a beautiful thing but that is a long term game as you cant force appreciation into something at the top of the market. Sit back and let it grow. I have been investing anywhere I can from San Antonio to New Braunfels on IH35 north of 1604 mainly for convenience as I live in Schertz, but the appreciation has been excellent in this area. High growth suburbia without the headaches of dealing with NB permits and short-term rental permits.

Nate R. · Answer

New Braunfels is a nice town, but it is a bedroom community. Historically, fringe areas like this get hit harder than the core of metro areas during housing market downturns.

Trampas Tanklage · Answer

@Sunil Gadi have you considered Seguin or northeast San Antonio? The appreciation in New Braunfels has been crazy in the past few years, I haven't seen a single family deal that cashflows as a long term rental in a while. Both are right down the road and offer a better price to rent ratio. Rents in SA are climbing substantially as well.

Jeffrey Evans · Answer

I got my 1st rental in NB almost 2 yrs ago. Its tough to cash flow there now that prices have gone up. I like the market but prob not possible to cash flow much with a turnkey type place. I do think it should appreciate and be a good market long term but I doubt I will get another place there since I don't like to rely sole on appreciation.

Can one make New Braunfels as their main SFR portfolio city ?

Can one make New Braunfels as their main SFR portfolio city ?

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