BRRRR in San Antonio
Hi Everyone,
New investor here, thinking about starting my real estate journey in San Antonio. I currently live in the Bay Area and want to connect with an agent from the area to try and find a deal!
If anybody has any input they want to share about the market with respect to BRRRRs, I would love to hear it!
Hey Brian, I help many investors on BP with BRRR properties here in SA. Happy to help you if you're ready to go. Feel free to message me.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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What kind of input?
Quote from @Eliott Elias:
What kind of input?
As in are you finding that there are a lot of deals to be found in the area with enough meat on the bones to pull off a successful BRRRR? What combination of bedroom/bathroom are you seeing a lot of demand for? What are some good up and coming neighborhoods to look at? Anything helps really…
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@Brian Batista thanks for posting. Always great to hear from people interested in Texas.
San Antonio is one of those markets that we know about here in Texas but people outside of Texas may not think about that much. San Antonio ranks as the eighth safest large city in the United States and is the most affordable major city center in the state of Texas. With a cost of living that is 14% less than the national average, living in San Antonio is an affordable option for those on the hunt for a new place to live. Compared to other big cities in Texas, San Antonio also proves to be more affordable than living in Austin or living in Dallas (where I am). In order to live comfortably, residents only need to be making an average salary of just over $46,000. Plus, due to Texas not having a state income tax, residents are able to save even more money. Not to mention, housing prices are lower in San Antonio as well which makes finding an investment property a lot easier.
A couple of things that help us be really successful in the San Antonio market - 3BR, 2BA homes. Garages are nice but not a requirement for a good rental. A carport does just fine here but again, not a requirement. Do not exceed a $250,000 value. I mean...you can do what you want I guess, but all the numbers show that $250k and lower make the best rental properties. That's a home for your normal, hard working, blue collar family.
Finding properties that fit the BRRRR method usually come from "Off Market" properties. The market is changing....so maybe finding something from the MLS might be possible in the future...but I doubt it. Got to go off market in just about every scenario.
@Robert Finn is a realtor in that area who works with a bunch of investors. @Betty Cruz is a great person to know and so is @Manaia Alalamua and @Will Pritchett.
Anyway, hope some of this helps!
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Welcome Brian,
We have been doing the BRRRR thing for quite a while but we are leaving more cash in deals as of late. Interest rates being the biggest change. We do love this market though. @Andrew
@Andrew Postell is my conventional lender of choice - who posted above. He has helped me see how to best use conventional lending in the investor space. He is an investor so he gets us!
I am curious where pure BRRRR deals are working these days. We got a little spoiled over the last few years. Prices have softened a bit but not enough to compensate for rate increases yet. We have also done "slow BRRRRs" like the one we're doing now where we are leaving money in it but one day in the future will pull it out when we can still make cash flow. I try to remember that money left in a property isn't gone like spent cash on groceries, it's just moved into a property that we still own. That takes the sting away a bit!
Best of luck to you. You came to there right place!
@Andrew Postell @Will Pritchett, Thank you both for your helpful feedback. The fact that you're having to leave more cash in deals lately is very useful information to know. It's something I am anticipating going into this, which is why I am looking at more affordable markets so it won't impact my ability to continue investing in more properties afterwards. I have reached out to Robert Finn, hopefully he can help me figure out if this is the market for me!
@Robert Finn is a BRRRR specialist and a fantastic realtor in the San Antonio market
@JD Kumala runs a great wholesaling company in San Antonio and he also has a track record of his own BRRRRs there.
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Thanks, @Alex Bekeza. @Brian Batista I've done several BRRRRs in San Antonio and specifically can provide you context on out of state investing. Small world: I actually sold an off-market duplex (78226 in San Antonio) to @Will Pritchett back in 2021. I believe he executed a solid BRRRR. He's a real professional.
@JD
@JD Kumalaundefined I'm looking for more there too and have a solid team!
Thanks @JD Kumala! Yes, that's a great little duplex that has definitely added value to our portfolio. Keep 'em coming!!
This is all great info! I've been researching SA for a while now, and I'm curious...what parts of SA do you all see the most appreciation happening? The hardest part for me to figure out is what part of SA will I get the most bang for my buck?
I second @Sarah Groth's comment! Glad to have stumbled upon this post. I've just started looking in the area as well, and am very curious about neighborhoods, especially as they relate to mid-term rentals. I own a condo I've been mid-term renting in my hometown of Dallas (Would love to connect @Andrew Postell !), and it's been great. I'm looking to make a multi-family investment next in San Antonio, potentially. The Los Angeles Heights area seems intriguing to me from a price/potential standpoint, but I'm curious if anyone has a bit more in-depth knowledge.
I know SA pretty well and I like it quite a bit for many reasons.
BUT: I never understood why someone living in a high income/sale tax state would want to pick a low (no) income tax but very high property tax state to invest in.
You basically lock in getting hit on both ends in a very significant way!
Maybe I misunderstand the situation or maybe you are planning on relocating to Texas as well. In that case SA is a great choice for you!
@Sarah Groth appreciation is hard to predict. We always sought cash flow and then appreciation changed our lives for the better. Andrew has a good point about income tax and property tax. Our property taxes are terrible and can kill deals in a hurry! That's the only bad thing about investing here though.
@Kevin Cullen LA Heights is good but most houses are very old. Depends on your strategy. For rentals, I prefer newer than 1950 and newer than 1980 when I can find them. Just my two cents. Lots of people are successful in LA Heights though.
Thanks, @Will Pritchett. I really appreciate the insight!
@Will Pritchett thanks so much!!!
This was such a great thread, sorry that I am nearly 2 months late to the party!
Quick question for the knowledge bank we have here: obviously we've all heard of the problems Californians and Floridians are having with insurers pulling out of their states. Texas has also made the news recently due to big jumps in homeowner's insurance prices, though, thankfully, insurers do not seem to be pulling out (at least not yet).
Is San Antonio an area that requires specialty/seasonal insurances like flood/etc? Or is that more just coastal Texas?
Thanks!