San Antonio Rental Market

[Hollie McClellan]

I live in Houston but an curious to know how the rental market is in San Antonio.  I would like to purchase a small multi-family between 2-4 units.  Property values seem to be cheaper than Houston plus there seems to be more small multi-family properties available.  I don't know anything about the market, though.  I'm curious to know how the rental market is in terms of rents, occupancy, and whether any one can suggest parts of town to look at.  Not interested in high crime areas.

[Todd Nurnberger]

Hi Hollie,

I can share some of our experience over the past 3 years as we build up from zero to 6 SFHs. 

We are mostly in the NW just inside 1604 and the rental demand has been good for us.  We have been able to have most of our properties rented by the time we finish the rehab/make ready.  Rents for our 3/2 homes are just over $1/sqft and the 4/2's right at $1/sqft.  We are seeing the opportunity to sign two and three year leases in half of our properties.  

We tend to look for lower hassle tenants and buy in areas, that have decent schools, and homes selling retail in the 125-200k range.  With all rents currently >$1250/month and requiring income of 3X the rent, we have found good residents that all pay rent online and typically on time for our homes.

We have also looked for small Multi's and to this point have not found anything where the numbers worked and the property fit our model.  

Hope this helps...Todd