Need advice for finding tenants near train tracks

[Paul K.]

tldr: bought rental property sight unseen due to military orders and buying out of state. Realtor failed to mention that there were train tracks and a railroad crossing right behind the house. Found out after I closed and showed up to furnish the place. Strategy was to use it as a fully-furnished crashpad but may need to flex to rent-by-the-room or LTR.

Hey BP Family,

I recently purchased a rental property in San Antonio. I used a realtor I found on here to purchase the place. I was on military orders and unable to view the property so I ended up buying it sight unseen after my realtor did a walkthrough and helped me vet the place. The closing process was uneventful and after the holidays, I showed up to furnish the property. Driving up to the property, I noticed a railroad crossing near the neighborhood. I thought that was odd and that turned to horror as I realized the railroad tracks were right behind my property. 

Over the course of a few days I furnished the place and found that the train would blast it's horn multiple times throughout the day and night. I contacted my realtor asking why the tracks were never disclosed. I Google Mapped the distance and it was showing 0.8 miles. My realtor said that since it was about a mile away, he was not required to disclose since it doesn't materially affect the property. I realized I was measuring it inaccurately and as the crow flies, the tracks are actually 0.1 miles (~400 ft) from the property. Once I told him this, he said he didn't disclose it because it wasn't part of his checklist. He offered to pay to install soundproofing curtains if I bought them, but shortly ceased all communication with me after I took him up on his offer. 

I get it, due diligence, buyer beware, all that. Ultimately my responsibility but that is what realtors are there for. He literally drove to the property, passed the railroad crossing, saw/heard the train, yet failed to let me know.

I was luckily able to rent it out as a crashpad for a few months to people I knew, but they are moving out in May. They definitely let me know frequently about the train noise and I did everything I could to make their time there tolerable (white noise machines, Bose Sleepbuds, etc). 

They are moving out next month and I highly doubt I will be able to find/keep any quality tenants due to the train noise. My initial strategy was to use it as a crashpad but now open to renting by the room or LTR. I feel like my only saving grace was that I knew the people I rented it out to initially, not sure if it would have worked had I not known them.

Soundproofing beyond curtains, white noise, etc. is incredibly expensive and will not completely reduce the train horn. I reached out to the city to designate it a quiet zone but that process is lengthy and costly, and they said that conductors would still likely use the horn due to the location of the crossing. I reached out to a different realtor who said if I were to sell, top of the market would be around $295k. I'm all in currently for about that much with furnishings, repairs, and installing sod. If I were to sell, I'm guessing it would be about a $30k loss (fees etc).

My question is, what are my options for attracting quality tenants despite train noise? I know I will have to reduce rent and disclose the noise to all potential tenants. What do you all recommend? Would love some advice.

Thank you!