All Forum Posts by: Robert Finn

In my personal experience here in San Antonio TX, small multifamily STR/LTR strategy, and non HOA pool properties are having the best chance to exceed 15% COC. Self managing will also have to be considered to save on monthly overhead.

MTR is a great strategy during off peak season. Here in San Antonio TX, I'm seeing demand from military families while they house hunt, couples performing remodels and needing temp housing, travel nurses, and temp housing from insurance claims. Furnished Finder works great when you act quickly and reach out as new inquires come in. Here in San Antonio, if you have stays less than 30 days you must pay the hotel occupancy tax, which is right around 9% of your net payout. MTR avoids this :) Using key check and other tenant screening options also helps. Our peak season is just right after spring so its great to lock in these type of stays before the season.

Speaking about my own experience in San Antonio TX, I'm still seeing demand to buy, but much less turn key deals. There are areas within the city that appeal to mid term and short term, but will most likely involve some form of contract/rehab work for numbers to pencil. The city has been very responsive on getting back on if a property is eligible for a permit, which has helped speed up the process. Negotiations and terms are still the name of the game, as list prices are still trying to find footing.

Multiple streams of income is a goal to strive for. My first hand experience as an investor as served me well as an agent, my experience in the hospitality industry has served me well as a host. When getting into real estate it’s easy to get caught up in what the influencers are preaching. Learn and understand what investors are looking for, speak to conventional and collateral based lenders and start analyzing deals. There will always be demand for good realtors, not everyone out there is experienced investors and will need help finding great deals and understanding the process! 

Great feedback from above!

I also reach out to previous renters around this time of year and offer a discount on a return stay if I'm seeing a-lot of vacancy. Entertain the idea of being pet friendly and also ask any current in house renters if they'd like to extend at a discount. Update guidebooks on what's happening nearby your location. Here in San Antonio, we have theme parks nearby (Six Flags and Sea World), you could build a relationship and see if there are any perks to referring your guests over, same rules apply for local restaurants.  

I'd speak to collateral based private lenders in whichever area you decide to invest in. You'll most likely have to navigate through many, but in my experience asking the following questions can help save time. Ask about the LTV/LTC process, funding and draws, improvements you're going to make after the purchase (recommend being based on recently rehabbed closed comps), reserves and credit score needed, and also see if an investor friendly realtor can pull Airdna comps showing occupancy in the target area. You could even subscribe for the short term to get the data yourself. Every market is different, creativity in the process will help achieve your goals! Best of luck!

Congrats on taking the steps to begin you REI journey! Small Multi is scarce in San Antonio, but not impossible to find! There are landlords/property managers that may have unrented units and may consider a conversation in regards to selling. I wouldn't rule out on market deals that may be overpriced as well! I acquired an overpriced on market duplex over a year ago and was able to negotiate down significantly. I've now implemented self management STR/MTR on one side and long term rent on the other. See where the value add component is in each property you're looking at. For me, there was no in unit laundry, so I had the work done and designed the space to appeal to STR/MTR travelers. Best of luck on your search!

For Mid term rentals, I've been offering bi weekly housekeeping service. This addition has dramatically increased my +30 day stay bookings and also providing savings on hotel and occupancy tax (San Antonio requires HOT taxes for stays less than 30 days). The other two I own operate more efficiently as a STR, you'll find that in order to stay ahead, you'll have to get creative! Best of luck in your REI strategy.

@Joe S. I'm no septic expert, but I know with higher occupancies guests will use your facilities to its max use. Depending what your current system is, I'd consider upgrading to accommodate the volume.

It may be worth testing the resale market!

For short term rentals in SA, the highest revenue grossing properties can accommodate 8-12 over night guests with a pool. The traffic back up on hwy 281 can be a hinderance and may result in negative guest feedback getting to and from downtown. The commute to the theme parks along 1604 is another hurdle. In my opinion, if you had a pool at this property it may be worth listing as an STR. Is the property running on sewer or septic?