San Antonio Financial Parameters and Property Taxes

San Antonio Financial Parameters and Property Taxes

Investor · San Antonio · Member since 2019 · 3 posts · 0 votes

To all the San Antonio area investors:

My wife and I are looking to buy our first rental property in the San Antonio area.  What do you think about these investment parameters?  Does this seem reasonable/attainable with this crazy market right now?

Investment Property Parameters:
Max Budget: 180,000
Single family home
Minimum 1200 square ft.
Minimum 3 bed/2 bath
Minor cosmetic renovations needed is OK - not currently looking for a large renovation project
B or C class home located in B class neighborhood
Average rated schools and above
Low crime rate in the area
Zip Codes: 78233, 78148, 78150, 78108, 78109, 78154, 78124, 78218 (too close to Kirby?), 78239, 78250, 78251, 78247. 
Cash flow after deducting for vacancy, capex, repairs/maintenance, and management fees = $150/month
Cash on cash return = 8%
Cap Rate = 8%
1% Rule = 0.008
Total ROI year 1 = 12%

Also, for property taxes, we were searching nearby homes on the various county websites to figure out the property tax rates for prospective homes. Is this the best way to do this?  Is creating a list of property taxes by county & city reliable or are different pockets of neighborhoods within a city going to have different rates?  If you happen to know the property tax rates for any of the zip codes listed above, please let me know.

Thank you!


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Real Estate Agent · San Antonio, TX · Member since 2018 · 25 posts · 15 votes
5y

The county websites are pretty accurate.  If Bexar County it is bcad.org.  

See this reply in the discussion

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  • Real Estate Agent · San Antonio, TX · Member since 2018 · 25 posts · 15 votes
    5y

    The county websites are pretty accurate.  If Bexar County it is bcad.org.  

  • Bay Area, CA · Member since 2020 · 14 posts · 13 votes
    5y

    Hi Aaron - I'm looking too and following your message! I'll send you a connection request in case you want to share learnings as we go.

  • Investor · San Antonio · Member since 2019 · 3 posts · 0 votes
    5y

    Thanks @Shaun Witcher

    And yes @Hassan Karaouni I just accepted your request. 

  • Anthony FingerPro Member
    Investor · San Antonio, TX · Member since 2017 · 38 posts · 27 votes
    5y

    @Aaron Naley You can find properties with those parameters. I invest in the Northeast and East side and I have hit those exact numbers you have laid out above.  

    Property taxes can vary a tad by neighborhood but I agree with Shaun, bcad.org is my go to and is accurate. 

  • Investor · San Jose · Member since 2020 · 10 posts · 11 votes
    5y

    Hi @Aaron Naley @Anthony Finger @Hassan Karaouni love to connect with you if you don't mind. I am from the Bay Area and currently in the area looking to build a team to invest in San Antonio! 

  • Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    5y

    If you look on bcad you get the actual tax rate as well as how much the taxes are for the current year. Texas re-asseses properties every year so taxes may and probably will go up every year. Since  you will NOT be owning the property with homestead exemptions the property value, hence the taxes, can increase at any rate deemed appropriate to the county (based on market prices, of course). 

    So what I am saying is that if the property is valued low, you buy it, then next year the value may go up 40% or 100% or it might stay the same, and your taxes will go up 40% or whatever from what they are today. That is the fun that you have purchasing property in Texas. You're welcome!

  • Investor · San Antonio · Member since 2019 · 3 posts · 0 votes
    5y

    @Rick Pozos I've heard of property taxes being an issue in Texas for investors.  I do not want to invest for appreciation, but it's always nice to have.  The issue here though is it almost seems like you're betting against yourself because you don't want appreciation too fast or you can start to have negative cash flow with the rising property taxes.  Do you find rents having a hard time keeping up with rising costs such as property taxes?

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