San Antonio - Good or Bad Investment?

[Brant J.]

I currently own a SFH in San Antonio, TX. My wife and I are building a new home out in the Boerne area that will be completed early next year. Our current home is older and wouldn't make a good rental (for various reasons) so we were planning to sell it (as it is pretty much paid off) and take advantage of the tax free capital gains.

I would like to use part of the sale on our existing home and use it towards the purchase of another SFH to use as a rental but I have my reservations after doing some analysis. Using the Buy and Hold Calculator, I have not been able to find any investments properties that have positive ROI. I attribute this to the high property taxes, inflated housing costs and low(ish) rent in San Antonio (and Texas in general).

Am I not seeing things correctly? Am I looking in the wrong areas of the city? I'm trying to find a reason to purchase a rental property instead of investing my income into the stock market as I want to venture into real estate investing.