Investing in San Antonio rentals

[Matt Heerwald]

Hi, we live in Austin and have one rental here, and will turn our current home into a rental soon, but the market here is pretty high and we have been doing research into the San Antonio market.  Homes are cheap and the rents are good. We were looking at buying a place close to Randolph AFB, maybe a 3/2 with a garage and hoping to rent to Air Force families.  Any thoughts?  One problem is the turnover, but other than that, it looks like we could pick up a couple places on the cheap.  I think we would be looking at properties in the $80-120K.  Anyone have any input?  Thanks in advance!  Matt 

[Brad Larsen]

@Matt Heerwald  One thing you should also understand about San Antonio is that it has numerous military installations.  Randolph AFB, Lackland AFB, Fort Sam Houston, Camp Bullis, and Guard units galore in the region.  RAFB is an Air Force training facility for pilots and navigators.  It's very Officer Heavy with transient personnel coming in and out for less than 18 months.  One poster above recommended going up in price and I completely agree with that just because military officers make more, get more housing allowance, and want better housing.  

My recommendation for a rental formula in San Antonio:

• Minimum 3 Bedroom
• Minimum 2 Bathroom
• Minimum 2 Car Garage
• Price Point:  $120k to $180k
• One Story above 1400 SF
• Two Story above 1800 SF

From there, you have to run a cash flow analysis drill to find out if the rental numbers versus the purchase price make sense. 

NOTE: The home renting for $1,100 to $1,200 is the fastest moving animal in the city. Those homes never go vacant for long.  

If you need assistance with rental numbers - find us on the web.

Take care!