San Antonio Ideal Rent Range

6 Replies

I am a out of state investor that is considering investing in central Texas. My ideal would be to have rent be roughly $2,500 a month or $2,000 a month. This is attainable in California because the housing prices are so astronomical that people that can afford that $2k a month cab’t afford to purchase.

My question, with homes ranging from $200-300k am I likely to find a market for renters paying $2-3,000 a month in San Antonio, New Braunfels, or Austin?

Should I focus on funding property that rents for $1,000 a month instead?

Austin and San Antonio are 2 very different markets the strike zone for San Antonio is probably $1300 - $1850 for Austin (which I'm less familiar with) It is more like $1500/ $1600 all the way up to mid $2,000s but can go higher because some people are willing to pay stupid prices to be closer to the city center.  Obviously rent goes up as price goes up but at some point it just isn't a great investment compared to what you can get in the lower price bands.

@Sean Walcott The 1% rule will not be found in Austin or San Antonio. Here in Austin, I do have a home renting for $2100/month and it is probably worth $350k-$375k on the market. We achieved these higher rents after buying a fixer and completing a major remodel. Most rent ready “turn key” properties will need to be over $400k to start seeing $2000+ rents. San Antonio should see a better yield as they have a lower price average than Austin. If you do find something approaching the 1% rule, it very likely could be a D-class neighborhood.

@Sean Walcott the (very) general rule of thumb I've seen down here in San Antonio is rent at $1 per square foot. There are some good cash flowing pockets of town in solid neighborhoods (think around the military bases, Randolph and Lackland). However, you probably need to look into small multifamily properties to achieve rents in the $2-3,000 range. The major draw to our area is relatively low prices for a big city, and you can find deals that meet the 1% rule.