Experience investing in San Antonio, TX ?

Question

Hello BP Community, I am looking to buy rentals in Houston & San Antonio.  I'd like to hear peoples experience buying rentals in San Antonio. Is there anything you wish you would have known before you purchased a rental in San Antonio?

Jonatan Barbera · Answer

@Leon Green honestly it depends on what your investment strategy will be. We all want equity, cash flow, and appreciation. But sometimes you have to pick which of those makes more sense at the moment.

As far as SA goes, it's a great market. We're very diverse in jobs and VERY affordable which keeps attracting more people.

We also have a great infrastructure that allows for better commuting and huge growth potentials.

But, you need to make sure you lay eyes on any property you buy. Wholesalers have gotten even worse since the pandemic and they're pushing anything to make a buck.

NEVER take anyone's numbers. Always run your own. And use your own contractors.

I hope this helps. Feel free to reach out if you have more questions.

Brendon Brooks · Answer

@Jonatan Barbera

Hi Jon, I've been watching your youtube podcast "Coffee with the Jo[h]n's" on Friday mornings. You guys put out great information on the San Antonio  and Texas markets and just overall REI trends and data. It's very much appreciated!

John Sledge · Answer

@Leon Green I agree with Jonatan, San Antonio is a great City and market, you must always do your own due diligence in any market that you are investing. As a former appraiser the goal is to research each deal and look at it like an appraiser.

@Jonatan Barbera Enjoy your "An Investors Journey" podcast.

Leon Green · Answer

Thanks for the great info @Jonatan Barbera and @John Sledge. If you have any contractor recommendations please send me a PM. I just locked up 3 deals in SA and plan to add more.

Lionel Mosby Jr · Answer

Mercy! Thank you for that information. It seems cities go back and forth with the regulations or lack thereof on these short-term rentals.

Jonatan Barbera · Answer

@John Sledge thank you sir.

Jonatan Barbera · Answer

@Brendon Brooks thank you for that. Glad you’re finding value.

Jonatan Barbera · Answer

@Leon Green I honestly never recommend contractors because most aren’t that great. But shoot me a PM with what you need and I’ll see who we’re currently using.

Christopher Campbell · Answer

Like most metros some areas are better than others. Depending on your goals you can achieve decent cash flow or capture great appreciation. Ultimately it's going to come down to your style and capabilities.

The on-market game is EXTREMELY competitive. Without access to off-market opportunities or people that can bring you these deals you'll find it very hard to find a deal that could fit what your looking for with enough time to analyze it. We've been hovering just above 2 months of inventory recently so deals aren't super plentiful at the moment so when there's a good one or even decent one, it's flying off the shelf. But this helps on the backside when you do get a deal and turn around to rent or sell because your days on market, per what Bexar County data is showing, should be very low - especially for a rehabbed home.

Good luck in the small multi game. Everyone and their Mommy wants that one so competition is SUPER stiff and there really aren't too too many in the city (or in areas where you'd want to be I should say).

Would be happy to share knowledge and XP.

Brendon Brooks · Answer

@Lionel Mosby Jr

Hi Lionel, I currently have one STR in San Antonio. Prior to COVID I had 3 STR's for about 2 years. Things were great up until late March. I dropped 2 of my STR's that were rental arbitrages. Which 1 took about 9 months to get rid of which was painful to have 3 empty houses for a few months with no revenue or very little revenue. Thankfully the one that I own and still have has had a long-term multi-month booking which has been a blessing.

I will say that a lot of supply has been reduced over the past few months. Before COVID it was definitely becoming more saturated and in late 2018 regulations were enacted that required a permit and to pay hotel occupancy taxes to the city, which also trimmed some supply slowed the growth.

Experience investing in San Antonio, TX ?

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