Good afternoon bp! I was hoping someone out there might know the San Antonio market. Especially the live oak Randolph AFB area. Thanks in advance for any help! Have a great day!
Great area, lots of demand for housing. Flips sell quickly and rentals lease fast. The big draws are Randolph AFB, The Forum Shopping Center, & proximity to I-35 & 1604. Just outside of 1604 the area keeps expanding tons of new neighborhoods popping up and several business have opted to locate or relocate there. Amazon just opened a distribution center in Cibolo, TX, just minutes from Live Oak.
@Seth Teel Thanks so much for the feedback. I was looking at either Austin or SA area and trying to decide for my first property. I did not know about the amazon move, that's good to know.
Ross, Seth was correct SA is on the upswing right now. If you need or want more info let me know, i can put you in touch with a realtor who is use to working with investors.
We sold our homes in Austin and are buying in San Antonio. In San Antonio you can get a 85-110k house that will make you $500/month in CF. In Austin you can do the same but you need to be at 175-225k. For us, Austin required much more capital to make the same money in CF.
@Ed Neuhaus Can you cash flow that much given the high property taxes in TX. And I assume that's w/o debt service.
Originally posted by @KJ D'Costa :
Ed Neuhaus Can you cash flow that much given the high property taxes in TX. And I assume that's w/o debt service.
Sure can, Taxes don't help but we do it all the time. With debt even up to 100% LTV. Ok 100% ltv will not cashflow 500, but it will get 300. You just have to buy good homes. Im looking for homes at 85-90k, which i rent for 1050+. 1% rent is not good enough for our numbers.
Im also a broker, so I get 3% going into the deal which I just dump into the capx fund. That usually covers my repairs for a while. That allows me to hold back smaller reserves down the road. leasing also does not cost me anything, so my vacancy loss rate is lower. I use 4%.
Ross, if you like i can put you in touch with a real estate agent in the SA area, just let me know. Good luck.
If anyone has a good agent (investor friendly) in San Antonio we are actively looking for investment properties in that market. Thanks in advance.
I also have a great broker I used down there to acquire for me, then manage my 4-plex. He has his own property management company and also his own investment properties - so he knows the drill. Private message me and I'll send you his info.
@Joseph Canini Hey thanks so much for the response. I'd love to talk to your realtor, see if we can't do something.
Hey @Ed Neuhaus that's funny, I wanted to start in Austin but the numbers seemed better in SA. I'm using the VA loan for a residential multi family. It seems like you do SFR, do you care for multi families?
Hey @Mark Mosch Thanks, I'll message you soon. The more the merrier :)
Good to know that SA is such a good market!! That's awesome. Wish all you guys luck down there!!
Ross, the realtor I use is Jerri Myers @ 210-818-0624. She works for Keller Williams Legacy. As a matter of fact she is working on a VA loan right now, she might have some good tips for you, give her a call, and happy hunting.
I do mostly SFR because the 1-4 multifamily are typically all grouped together and it seem you always get stuck with more than a few owners who don't want to keep the property up. I don't have a problem doing them, and certainly know how to do them, I just usually go SF.
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Roger, I have a good investor agent I can recommend. Please PM me.
@Randon B. thanks for the number, I'll check it out. Have a wonderful day.
When you say
the 1-4 multifamily are typically all grouped together do you mean by area? What negatives do you see with that? When you deal with owners who don't keep the property up wouldn't you be able to pick it up for less since there is rehab needed and then able to increase rental rates?
What I have seen in Austin, Houston, and San Antonio, is that developers will build small streets of nothing but duplexes or quadplexes. They usually come in groups, like 6, 8, 12 properties all grouped together on a street.
I don't like this because unless you own all of them, you are stuck counting on other investors to make money.
Sure you can upgrade your property to get more in rent, but if the other 11 quadplexes on the street don't update, you are not getting top dollar. You could have a diamond encrusted parking lot, but if it is next door to a gravel parking lot, you are not going to get diamond rent prices. Maybe emerald, or ruby, but not the diamond price.
Since these kinds of units are all investments and you can't control the other owners or their finances I say away.
I like SFR because mine are surrounded by owner occupants. Pride of ownership from those owners helps keep my property values up.
But that is just how I do it.
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