Real Estate Agent · St Petersburg, FL · Member since 2014 · 116 posts · 38 votes
I've been looking to buy my next rental in the Seguin / New Braunfels area but have had mixed feelings regarding its long term growth.
On the one hand, these cities are situated in between two economic power houses, San Antonio and Austin, who are both expanding at the benefit of whatever's located between them.
On the other hand, Seguin and by proximity, New Braunfels, depend in large part on the manufacturing industry. I think it's great that large manufacturing companies are present in the area and continue to invest there, but I'm worried that with the slowdown in the manufacturing industry happening in the US economy, that job losses are going to happen.
I'm curious to know what those who invest in the area have to say about this. Is this something you think about too? Have your rentals been affected by it or do you think they might in the future?
Rental Property Investor · New Braunfels, TX · Member since 2018 · 3 posts · 4 votes
6y
I agree with above. I live, work and have rental in New Braunfels and it’s exploding in growth. I don’t personally think NB is very heavily reliant on manufacturing, but seguin may be a different situation. The two cities are very different. My opinion is NB is the best choice for appreciation and seguin might be better for cash flow and cheaper houses.... but with a better chance of headaches.
Rental Property Investor · New Braunfels, TX · Member since 2018 · 141 posts · 103 votes
6y
@Alexi Schreier I've lived in New Braunfels for 16 years and Austin the 22 years before that. All within a mile of IH35 that runs from Laredo to Canada, the area has never stopped growing in the 38 years I've been here and I doubt that it ever will stop growing. So many more things than manufacturing that makes people want to live here. Just beware that Seguin and New Braunfels are two totally different areas when it comes to rental properties/rent prices/resale etc.... Also, if you buy between the two cities you will potentially pay property taxes in both Comal (New Braunfels) and Guadalupe (Seguin) counties in a lot of areas. None of my rentals have been affected by manufacturing and I don't think they ever will.
Real Estate Agent · St Petersburg, FL · Member since 2014 · 116 posts · 38 votes
6y
@Mike Kirby thanks for your input. Are your rentals in New Braunfels only?
When you say that there’s a lot more bringing people to the area, are you talking about a specific city or the area as a whole? And what other factors are bringing people to the area?
Rental Property Investor · New Braunfels, TX · Member since 2018 · 3 posts · 4 votes
6y
I agree with above. I live, work and have rental in New Braunfels and it’s exploding in growth. I don’t personally think NB is very heavily reliant on manufacturing, but seguin may be a different situation. The two cities are very different. My opinion is NB is the best choice for appreciation and seguin might be better for cash flow and cheaper houses.... but with a better chance of headaches.
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
6y
@Alexi Schreier I don't have any property there but I did extensive work for an investor there just a few years ago. Everything he touched turned to gold even when it shouldn't have in other areas of the country. He has bought residential, STR, commercial and industrial. ALL went through the roof. He bought a house in Gruene and sold it 1 1/2 years later and built another across the street on the river.
The inspector, Matt, told me about a deal from a company in Australia that wanted to build a billion dollar "city within a city" between Creekside and San Marcos. They haven't got the permit yet and maybe never will but that is the kinda buzz that area is getting. If I were to invest in central Texas I would not bother with Austin or San Antone. I would be NB or San Marcos.
Real Estate Broker · Marble Falls, TX · Member since 2016 · 27 posts · 5 votes
6y
@Alexis Schreier
I am a Broker, Investor, and Property manager in Marble Falls/ Horseshoe Bay. Several of my buyers have told me they consider NB and Canyon Lake area along with MF as places to purchase and I would guess that renters feel the same.
Both are areas where people can raise families or retire. The proximity to Austin/SA allows them to work from home and be central to family in other areas of TX. The economy is diverse and there are jobs available.
My biggest struggle has been finding deals that follow the 1% rule. I have had luck buying and holding a couple of years and then the deals work.
All that to say, I’ve had more luck with buy and hold, and that has been my strategy.
Developer · Austin, TX · Member since 2014 · 266 posts · 110 votes
6y
There are other places around New Braunfels and Seguin that has strong job growth. Cibolo and Schertz have also seen tremendous growth with jobs coming to the area.
Real Estate Agent · St Petersburg, FL · Member since 2014 · 116 posts · 38 votes
6y
@David Ferrette No doubt that the entire area is on the path of progress and seeing lots of growth. That’s what attracted me to it I’m the first place!
My issue is finding areas that cash flow, and finding deals that you can buy under market value that need rehab work. From what I've seen these deals get snatched up as soon as they hit the MLS by other investors.
Seguin seems to have more of them, but going back to my original question, I’m not sure it’s an area that I want to invest in because the future of the manufacturing industry is uncertain and the quality of tenants there isn’t quite the same as areas like Cibolo, Schertz, NB, Canyon Lake, etc.
Flipper/Rehabber · San Marcos, TX · Member since 2016 · 128 posts · 38 votes
6y
@Alexis Schreier you can’t go wrong with either. New Braunfels is in high demand and Seguin is where New Braunfels was 15-20 years ago and it’s on the up and up.
Investor · Placitas, NM · Member since 2019 · 105 posts · 61 votes
6y
Closed on a newly constructed duplex in Seguin at the height of the COVID fear in April. I was a bit nervous, but Warren Buffet says to invest when there is blood in the streets. I had a couple of months vacancy, probably related to the wrong choice of property manager as opposed to the economy. Both sides are rented now and cash flowing nicely. I will look for more investments in the Seguin/New Braunfels area.