Out of state investment
Member since 2024 · 2 posts · 5 votes
Out of state investment
3 Replies
- 8moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
Quote from @Brandon Mascott:
I am looking into the San Antonio market. The entry price for new homes seems reasonable and the rent seems high enough to justify the purchase. I was wondering if anyone actively in this market can give some guidance regarding how bad the vacancy situation is. I understand there is a large amount of inventory and just want to make sure I am not missing something in this market. The population and job growth seem very reasonable for a long term hold. I look forward to hearing from anyone in this market regarding current conditions and outlook over the next few years.
Thanks,
Brandon
@Brandon Mascott
San Antonio can look tempting with the price and rent numbers, but as an out-of-state investor, you’ll run into more competition and management challenges than many realize. If your goal is strong, predictable cash flow without the headache of constant oversight, a lot of investors are pivoting to Midwest markets. You can pick up duplexes or small multis well below replacement cost, cash flowing from day one, and scale faster with a solid boots-on-the-ground team handling property management, contractors, and local lenders. It’s a way to grow safely while still benefiting from long-term appreciation. Hi Brandon,
Welcome to the San Antonio market. You’re right that entry prices on newer homes are reasonable and rents are strong enough to justify purchases in a lot of cases.
On vacancy: yes, there is a fair amount of inventory, particularly in the newer Class A garden-style apartments north of 1604. That does show up in the headline vacancy numbers, but it hasn’t translated into real softness in the segments most investors are focused on. Duplexes, quadplexes, and small multifamily that are well-located and well-managed are still leasing quickly.
A few things I’m seeing firsthand:
• The newer, larger apartment deliveries are creating statistical vacancy, but that doesn’t mean tenants aren’t taking good units. The newer projects pull a lot of the reported vacancy, while better landlords fill from the bottom up.
• Small multifamily and value-add properties still lease in 30–45 days on average in strong corridors.
• Rents continue to rise in the segments that matter most to most investors, especially near major employment centers and transportation.On employment and growth, San Antonio’s market continues to get stronger. For example, JCB recently announced a significant expansion in the region that is expected to bring around 1,000 new jobs to the community. That’s the type of long-term employment growth that supports population increases and rent demand. There are also ongoing expansions in healthcare, tech, and logistics that are bringing new workers and demand for housing.
Overall I think your logic on long-term holds makes sense here. Population growth, expanding job opportunities, and relative affordability compared to other Texas cities continue to drive solid fundamentals.
If you want some specific rent comps or vacancy numbers for a particular submarket or property type, I’d be glad to share.
- 5moRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Brandon Mascott:
I am looking into the San Antonio market. The entry price for new homes seems reasonable and the rent seems high enough to justify the purchase. I was wondering if anyone actively in this market can give some guidance regarding how bad the vacancy situation is. I understand there is a large amount of inventory and just want to make sure I am not missing something in this market. The population and job growth seem very reasonable for a long term hold. I look forward to hearing from anyone in this market regarding current conditions and outlook over the next few years.
Thanks,
Brandon
One thing I'd look at is whether the vacancy concerns are market-wide or concentrated in specific product types. In a lot of growth markets, new construction can temporarily pressure rents and occupancy, but that doesn't necessarily affect every neighborhood or price point equally. If you're buying for a long-term hold, I'd spend as much time studying future supply pipelines and submarket-level rent growth as I would current vacancy rates. Which part of San Antonio are you focusing on right now?
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