New guy looking at properties in San Antonio

[Mike Huerta]

Hi, I'm looking for my first SFR property with a target price under $200k and since I live in Northern CA (Bay Area) that's pretty much impossible. Enter San Antonio. Seems like you can easily find properties that should carry a gross yield of around 1% of the purchase price. Example Here. But what I noticed (not with this property but for several others in the Far West Side area of SA), is the price history and days on market. I'm finding a lot of homes that have been on the market for several weeks to several months. Do any local experts have insight to the current market conditions in SA? What about the Far West Side area? I know my neighborhood like the back of my hand, but prices are just too high to to buy a rental. Thanks!

-Mike

[Sterling Williams]

Mike,

The far west side is a great area of town and one of the fastest growing areas within the United States. The area benefits for several reasons, but one of the main reasons is proximity and accessibility to 1604 & 151. Employers such as UTSA, Valero, National Security Agency, Lackland AFB, Kelly Field, Medical Center are all within a 15 min drive. The far west side is primarily going to be A & B class single family with some larger A & B Multifamily mixed in. The school district is solid, you really can’t go wrong with the Far West side of town if the numbers work. In this case, due to days on market, you have some room to possibly negotiate the price down and you always have the option period to try and negotiate further after inspection and appraisal. Being conservative with the lowest price per sqft ($.61 per sqft) for a 4 bedroom (No 5-bedroom rental comps), you’re looking at around $1,797.00 per month.

Good luck moving forward!