Realtor · Schertz, TX · Member since 2015 · 226 posts · 53 votes
Does anyone have some objective data (crime, tenant quality, etc) for the area along IH 37 between IH 10 and 410? More specifically, the residential areas close to IH 37 near Southcross and Pecan Valley? See below...
Are these areas that should be avoided for rental property investing? I'm into residential rentals, but not interested in war zone/bad-area investing (don't feel like chasing rents every month)..
The areas you are asking about are not war zones, and are not generally "high crime" areas. Is there more crime than a suburban neighborhood on the Northside, yes. But what do you expect?
On the Eastside of I-37 you have the Pecan Valley, Fairlawn, & Highland Hills neighborhoods. Pecan Valley/Fairlawn tops out just over $180K in the last 6 months, with solid comps in $160K range. Rents comps on the MLS are showing a max of $1000/month for a rental in this area, but I suspect this is inaccurate. In this area most of the landlords will rent their homes off a sign, craiglist, or facebook. I am willing to be you could get up to $1400/month on a nice sized well-renovated 3/2 in Pecan Valley/Fairlawn.
The values are not quite is high in Highland Hills, but it's a solid working class neighborhood with does still approach that $160K mark in home sales (last 180 days). Again, rent comps on MLS are showing up to $1000/month, and again I suspect this a little lower than what you can actually get.
On the Westside of I-37 you have the Hotwells neighborhood. Not quite as glamorous as it's neighbors to the East, but still a solid area. Your market tops out at $147K for the last 180 days, but that was an outlier. A more realistic ARV for this are is below $130K. Rents range fro $700 - $1000/month depending on number of beds/baths and whether or not its SFD, Duplex, or Apartment building.
I have had several clients invest in these neighborhoods and be successful. Most were held the properties as rental or sold them via owner finance. I have had a couple clients flip properties in Pecan Valley/ Fairlawn. Since you say you're looking for buy & hold rentals, I think this can be a lucrative area for you. That being said, tenant screening is paramount to eliminating many of the potential headaches. There is also the "Ladyfriend Test;" Would you send your wife or ladyfriend to pick up rent check at a property in this area at night? If the answer is no, then move on. Of course, if you have a property manager this could be a moot point.
San Antonio, TX · Member since 2017 · 81 posts · 31 votes
9y
Hmmm. No objective data, but have been through there over the years. I think since they've converted Brooks, that area has started to clean up and get more commercial. Could be a growth area, but I'm just speculating.
The areas you are asking about are not war zones, and are not generally "high crime" areas. Is there more crime than a suburban neighborhood on the Northside, yes. But what do you expect?
On the Eastside of I-37 you have the Pecan Valley, Fairlawn, & Highland Hills neighborhoods. Pecan Valley/Fairlawn tops out just over $180K in the last 6 months, with solid comps in $160K range. Rents comps on the MLS are showing a max of $1000/month for a rental in this area, but I suspect this is inaccurate. In this area most of the landlords will rent their homes off a sign, craiglist, or facebook. I am willing to be you could get up to $1400/month on a nice sized well-renovated 3/2 in Pecan Valley/Fairlawn.
The values are not quite is high in Highland Hills, but it's a solid working class neighborhood with does still approach that $160K mark in home sales (last 180 days). Again, rent comps on MLS are showing up to $1000/month, and again I suspect this a little lower than what you can actually get.
On the Westside of I-37 you have the Hotwells neighborhood. Not quite as glamorous as it's neighbors to the East, but still a solid area. Your market tops out at $147K for the last 180 days, but that was an outlier. A more realistic ARV for this are is below $130K. Rents range fro $700 - $1000/month depending on number of beds/baths and whether or not its SFD, Duplex, or Apartment building.
I have had several clients invest in these neighborhoods and be successful. Most were held the properties as rental or sold them via owner finance. I have had a couple clients flip properties in Pecan Valley/ Fairlawn. Since you say you're looking for buy & hold rentals, I think this can be a lucrative area for you. That being said, tenant screening is paramount to eliminating many of the potential headaches. There is also the "Ladyfriend Test;" Would you send your wife or ladyfriend to pick up rent check at a property in this area at night? If the answer is no, then move on. Of course, if you have a property manager this could be a moot point.
i love the "ladyfriend test"...i ask my wife all the time what she thinks when we are driving around neighborhoods in the evenings/night...she has no issue telling me her thoughts lol
Investor · San Antonio, TX · Member since 2017 · 4 posts · 0 votes
9y
I have a property in the Hotwells area but I don’t have the data you are asking for. This is a great rental area and I’ve never had a problem finding tenants. Screening tenants is vital though to make sure you have people that can pay on time every time. There is some crime that I’ve heard of from my tenants but nothing crazy has happened at my property. I generally feel safe when I’m visiting or working on the property. As you probably know, the homes in Hotwells are fairly old so they can require some work to fix them up and maintain them.
Investor · San Antonio, TX · Member since 2016 · 145 posts · 61 votes
8y
I keep buying on the far westside outside of 1604 off Potranco and although I have seen return on equity after I pull out my cash after rehab on the rental of about 10%, I may be able to do better in the areas you guys are talking about...so I may venture out. Thanks!
Investor · San Antonio, TX · Member since 2008 · 21 posts · 3 votes
8y
Hi BP fellow investors. I have a house in the Hot Wells neighborhood that is available for sale. It is a 3-2 and has been completely remodeled. New roof and foundation were done in 2017. It is on mls for sale. When I had it as a rental in section 8, I had plenty of takers and had great returns. But now, I want to sell that and focus on mf. So it's time for me to cashout. If you are looking for a great rental let me know. This house is completely ready to rent out or move in. Incidentally, it is a very quiet area and I haven't had a problem with crime. I had more problems on the west side of town. If anybody is interested in seeing it, let me know.