I am an Austin investor, but looking at other markets for cash flow properties. I was planning on driving around San Antonio over the next few weekends to check out some neighborhoods. Any recommendations on areas to look at?
I am looking for properties with good bones that may need some cosmetic renovations and updates. What are some good B areas that you have had success in?
Since I got into real estate about two years ago we have really seen a shift in where we have been working with a lot of our rentals. I would say from my experience the best areas of San Antonio that you are going to see your highest returns are going to be in your northeast and northwest sides of San Antonio. They are your more typical middle-class working neighborhoods where you can still pick up properties for the 120-170 range and gets rents in the 1200-1700 ranges.
In the last year or so we have seen values in the Northwest really increase due to the fact that they have really opened the accessibility of the neighborhoods with all of the recent renovations to the 1604 loop west of I-10. The values have increased but the rents are still lagging behind some but I see them picking up in the coming years.
I would say that I for the Northeast I would stay west of I-35 and east of 281, North of 410 to 1604. If you do go further west of I-35 I wouldn't venture too far inside 1604 as the areas really start to get spotty.
For the Northwest it pretty much a mirror image stay west of I-10 and northeast of 151, staying outside of the 410 loop out to 1604. If you venture to far south of 151 I would stay closer to 1604.
Hope that helps.
On the opposite end of the spectrum from @John Barr , I have had great success with duplex and multi-family rentals in the central core (closer to downtown the better). Although recent popularity and appreciation has priced out most cash-flow investors in areas like Tobin Hill, Lavaca, Dignowity Hill, and Mahncke Park, there are still some deals to be had. Of course these areas have older housing stock and rarely require just a cosmetic rehab. Close to the neighborhoods I just mentioned are also good MF rental areas: Beacon Hill, Five Points, Highland Park, Durango/Roosevelt, even Denver Heights is coming up.
Ultimately it boils down to your strategy, the comps, and comfort level with the area. For comfort level I've always used what I call "The lady-friend Test" - Would I send my wife/girlfriend/etc. to go pick up rent at night in this specific area? If they answer is Yes, and the numbers work, then I buy. I use this test regardless of whether I will be property managing it myself or paying someone else to.
I like the "lady-friend" test. Good way to put it
@Jim Robertson how did it go driving around San Antonio? I've been doing the same. Would love to compare notes.
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@Jim Robertson Its no problem Jim. If you have any other questions feel free to send me a message and best of luck!
There are a number of large multi-family properties coming online in the next 3 months to a year on the higher end. This will push rents down a little. It may also have a trickle down effect across the board.
This was written a couple of months ago.
Hi @Jim Robertson , we are planning to sell our 3/2 townhome rental in the Wurzbach area of SA. Feel free to PM me if you have an interest. It's a newer property with a current tenant lease to April 2017.
@Betty Cruz I was very interested in North Central San Antonio. Seems like a lot of opportunity with a large rental pool from military, colleges and downtown employers. I was really interested in 5 points, tobin hill, alta vista, and woodlawn lake. I think there is a lot of opportunity in east and west san antonio, but I dont know if I have the time to go after properties with structural issues and years of neglect. I would like to get into that type of rehab, but its not fitting with my current plan.
Does anyone know of an experienced multifamily realtor that works in north central San Antonio?
Just a thought. Have you looked at New Braunfels. There are still some areas near Creekside both a bit north and south of the middle of it that are still good buys. thinking Post rd. or so up to Gruene. Lots of permits going on in that area. In Greene you will likely pay over a million. 1/2 a mile east maybe 120k. Gruene is pushing out from the west and Creekside is pushing from the east. They are destined to meet IMO.
And the drive is shorter too.
I might be interested in that property on Wurzach...let me know the details.
I have a fourplex lot w builder ready to go near 1604 and I35. I have a new construction Duplex in NW SA ready in Dec and new fourplex ready in Jan. Numbers very solid and no need for R&M expenses for a few yrs. Strong rental demand, rents along the hottest growth corridor in the U.S. (Austin to San Antonio Let me know if can send you pics and some numbers. Have prop mgt in place that can make this very turnkey. Shifting assets to large apts. can have builder and prop mgr meet you.
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