San Antonio Texas Distressed Properties - Price Range Concern

[Zac Celli]

Hey there BP Community!

I have been evaluating markets (for BRRRR) investing for the past month. I have narrowed it down to the final handful & San Antonio Texas (City not Metro) is winning in almost every category except price. The current median home price in San Antonio is ~178k which is proving to be the biggest barrier to entry.

My model is based on $85,000 basis (Assumed 60k purchase & 25k rehab), with $110,000+ ARV, & a rent to value of >.9%. I am worried about the ability the pick up distressed properties anywhere near that purchase price, in a good neighborhood, that will allow for an ARV around that value.

However, as San Antonio is 1.5M people & 465 square miles, I am hoping that there is plenty of opportunity to acquire properties at, or at least around, my model. 

Can anyone let me know if they have acquired anything for around these values, in good neighborhoods, positive cashflow, etc. in the San Antonio, TX market? Happy for any and all input! 

Thanks!

[Rick Pozos]

Hey @Zac Celli I am not saying that you are looking for Unicorns, but more like white tigers.

There are some deals that will fit your model. There are deals that will fit just about any model, but you have to look for them. YOu have to do lots of direct mail, database searches, cold calling, texting or whatever it is that you do to find them. 

I find deals every month or two, but I spend plenty of money to find them. If you spend $1,000 a month to find 1 deal per year and make 20k on it, you have a positive of 8k. Just spend more money on marketing and you will be at 100k in income per year in no time.

It is not the neighborhoods that you find the distressed houses, it is the distressed people who own the houses. THAT is who you need to market to.