San Antonio Rule of Thumb...

[Jeff T.]

It's been a while since I've dove into the San Antonio market, but in general is the 1% Rule still reasonable for a cash flowing rental or has that moved up or down? 

[Victor Steffen]

@Jeff T. we've connected on a few 1% deals over the last 6 months in san antonio. They are almost always lower price points (150-175k), need updating and are typically in some of the rougher neighborhoods. OR we use a more esoteric management strategy (rent by room, STR, travel nurse etc).

I know this isn't your question, but worth noting: we've seen stronger returns from ".65-.75 % Rule" deals. You'll land in nicer neighborhoods with a higher quality asset. Less tenant issues and lower maintenance expenses. The returns on paper don't look as nice, but in reality we've done much better sacrificing COCR for IRR.

Good luck!