Hello! I want to startout my real estate investment by constructing a few multi family homes (4plexes or 2plexes, preferably 3bed/2baths) in one of these zips. I have tentative lots that I have identified and numbers look feasible. What I could not determine is how the low income status of these neighborhoods would mean for rents in general and resale possibilities in a few years. Any inputs on the following would be highly appreciated.
- What kind of renters I could expect at these zips
- Would $1000-$1100/month be inline expectations for potential B grade 3bed/2bath rentals around 1100 SqFt?
- How should my strategy differ if I want to resell these units in 2-3 years?
From what I have gathered 78228 seemed a better neighborhood than 78207 and slightly better off. I have done some preliminary research into these zipcodes and have demographic stats of the neighborhoods. Having said that, nothing can substitute advice from someone who has first hand knowledge about these areas. Looking forward to your responses.
Welcome! Both zip codes cover a large area with some great areas for potential new construction but difficult to give you a solid answer without having a more approximate location. The 78207 area has not had any recent 2-4 unit new construction to my knowledge, but 78228 has had two new construction duplexes that have recently been built. One has been sold and the other under contract (147 & 203 Cloudcroft) near Bandera and 410. The duplex that was sold was listed for $379k and sold for $360k with no seller concessions. All units have been rented between $1400-$1475 per door. Unit size is 1,640 sqft. 3 bed/2 bath.
Check out GreatSchools.org for school information.
Are you looking to defer the gain via a 1031 exchange down the road?
Direct message me if you have questions, looking for new construction examples or need some comps around the plats you've located.
Good luck moving forward!
@Sterling, sent you an invitation and some more details.
@Kent Agill congrats on taking a big first step into REI. Building ground up work...i'm guessing you are a licensed GC or architect? Would love to hear more about your venture. I too am looking into San Antonio area.
@Troy, I am neither. Looking for a solid GC at the moment.
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