All Forum Posts by: Seth Teel

There is high demand for vacant lots in the neighborhoods near Downtown (Lavaca, Dignowity Hill, Tobin, Hill, Five Points, Beacon Hill, etc.). Demand is from both developers (see Teramarkr Urban Homes) and individuals looking to build personal homes.  As for other neighborhoods, we have not seen as much infill development as other cities.  I think you're ahead of the curve.  As San Antonio continues to see an influx of new residents, I think we will see demand for these lots to be redeveloped.  If you pick any up, let me know, I may be interested in buying a lot depending upon location.

Welcome, @Bryan Fontenot! The San Antonio REI community is pretty great. Just make sure to do your due diligence with contractors.

Check out 133 David Ct. 78209. Duplex for $259K Looks like a deal.  Still in the city of SA, so no super Alamo Heights taxes.  Looks like its listed with Keller Williams City-View

Welcome, Kyle.  I'd be interested in taking a look at your deals.  I am an active buyer currently looking purchase at least two properties in the next few weeks. Reach out if you'd like to connect.

First and foremost, "the Rules" don't always apply and don't have to apply.  The 1%, 2% rule, 70% rule, etc.  Those are just easy go-to methods to help evaluate a potential deal quickly.  Each should be adjusted accounting for chosen market, comfort level, investment strategy, long-term/short-term old, and for many other reasons.  Use "the rules" as a starting point, but not an end-all be-all for determining whether or not you purchase an investment. 

You are correct, SA is a hot market, but many investors are still purchasing SFRs, duplexes, and MF with great monthly cash flow (many of these off the MLS or from over-priced wholesalers). As you mentioned, I really wouldn't worry about San Antonio being a bubble market. Unlike Dallas, Houston, & Austin, San Antonio does not have the severe spikes in property values, nor does is have the quick drops. San Antonio's market tends to plateau more than it builds and pops. That being said, you can still buy smart in a bubble market. When I look for rentals, I need a property I can purchase with equity, will appreciate, and can cash flow from day one.

In order to capture equity you may want to look at purchasing a distressed asset with a hard money loan, then refinancing out in 6 months instead of purchasing with a VA loan. Alternatively, you may want to look at purchasing a duplex of 4-plex with a FHA loan, living in one unit & renting out the other(s) for a year or two, then holding it strictly as an investment. I have done this several times and have only purchased duplexes where one unit's rent can cover 75% - 100% of my PITI. This way when I move on it's guaranteed cash flow.

Lastly, location plays a big part in appreciation and making sure you weather the storm in/when the market plateaus or takes a dip.  Many investors here buy rentals on the NW and NE sides. They buy 80's 90's built tract built homes in predominately rental neighborhoods. They may get decent cash flow, but their property values are generally stagnant.  Those that are buying older homes inside of 410 (closer to the urban core the better), will buy at lower prices (except for super hot areas Tobin Hill, Lavaca, Dignowity Hill, Beacon Hill, Alta Vista, etc), will see appreciation over the next few years, will have high demand, low vacancy rates, and be taking advantage of all the growth/development going on in and around downtown.  In the 4 years I've owned my duplex in Lavaca, I've never had a vacancy, and only had to advertise it for rent once (I had 18 showings within 4 days and had applications. This property has also seen appreciation of over 50%.  

Everything I've written above is based on my personal experiences and/or that I've seen from my clients, fellow investors, consulting other agents.  I am not saying you won't achieve your goals going a completely different route, this is just my 2 cents on the market and how to tackle it.   Hope it helped.

@Joseph Weisenbloom

Try Marco Balado (Commercial Mortgage Broker and Portfolio Lender)

210-286-8136.

Please tell him I sent you.

There a several single-family rental home investors here in SA.  Most are purchasing homes with ARVs around $120K - $160K.  Typical rents up to $2K or a little more.  Minium acceptable cash flow for most SA investors seems to be $300/month.  Many cash flow much higher than that.  Around the bases are "bread and butter" rentals, especially in the Northeast (Universal City, Schertz, Cibolo, etc).  Most military assignments are for two years and if they don't plan to buy, they they will rent and typically will look in above-mentioned ranges (however higher ranking military personnel will seek more expensive accommodations).   It should be noted that SF rentals tend to have less turnover than duplexes or multi-family.  Additionally, if you purchase in a good area, use nice finishes, and have competitive rents, you shouldn't have any problem with vacancy or turnover.  Hope this helps.

Welcome Bryan.  Make sure to check out some of the  REIAs and MeetUps.  There are bunch of active investors here in SA.  

San Antonio Real Estate Investment Association
http://www.sareia.com/

Alamo Real Estate Investors Association
http://alamoreia.org/

Real Estate Investment Association - San Antonio
http://sanantoniorenc.com/

San Antonio Real Estate Investors Discussion Group

http://www.meetup.com/San-Antonio-Real-Estate-Inve...

Also, @Rick Pozos just started a new meetup. I  think it meet's this coming Tuesday.

Welcome. I just bought my first Sub2 recently and am looking to get a few more. Let me know if you find any Sub2s here in SA that you're not interested in.

Yes, @Michael McCartney, Jesus & Frank are my "go-to" guys for pier & beam. 

I recently used Colunga Construction for slab and was very happy.  
Manuel Colunga - Colunga Construction 210-710-8117.