The Camelot area in San Antonio has historically been a high crime area covered in huge piles of trash. However, I have been seeing quite a bit in the news about the area being gentrified recently.
I am a newbie so I would like to get the opinion of more seasoned BP peeps with a better understanding of the market.
I’m wondering if it might be a good idea to get In while prices are low and homeowners are motivated. Does anyone think that a buy and hold investment in this area would pay off in the coming years? Or just be a huge headache?
Thanks in advance for your input!
Areas gentrify for a reason. What reason would Camelot gentrify??
It is not close to downtown, does not have some old beautiful houses, high crime is not changing, income of the people is not changing and there is not a bunch of new development in the area. Rackspace is a few miles away, but is that causing people to look for housing there??
YOu mentioned that prices are low and homeowners are motivated. YES prices are low and they are moving somewhat. I dont think they are moving that much and they are going to be very hard to deal with tenants. NO I dont believe that homeowners are motivated. Why would they be. The area did not "go bad" last year or a couple of years ago. It has been that way for a long time.
Thanks that makes a lot of sense! I appreciate your insight :)
@Angel Bowers I haven't owned there but it does have quite a reputation. I know some landlords probably have done fine there. I don't buy in Sunrise either but I know some investors who do well there and they may not like some of the areas I like. I don't look for gentrification for rentals as much as stability. However I missed the memo about Dignowity so maybe I'm jaded. I used to pick up shooting victims on an ambulance over there and looked up one day and it was cool. In general I target cash flow and appreciation is just icing on the cake. If you can speculate better than me you might get a bonus but it's not my strategy with long-term rentals. I agree with @Rick Pozos on there being few catalysts for gentrification in that area (that I am aware of). But don't hold it against me when it's the place to be in a few years. I warned you that I was terrible at seeing the signs of gentrification. Good question.
Best of luck!
I agree that appreciation should be icing on the cake. I always seem to forget that though! I haven't bought my first property yet (I'll start shopping in February) but today I started talking to my realtors about it to feel out which ones I want to include in my venture. I'm a mortgage loan officer so I have quite a selection to pick from! I'm no good at the whole "knowing your market" thing. I've lived in SA for almost a decade but spent most of it chained to various desks :/ I just know that if I bring one or two of my realtors in on it that I'm going to get off to a much better start. I'm not entirely sure how gentrification works so I really appreciate the insight from y'all!