Question for San Antonio or Texas Real Estate Investors

San Antonio, Texas
Rehabbing & House Flipping
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Question for San Antonio or Texas Real Estate Investors

Natalie Godoy
Real Estate Agent 路 San Antonio, TX 路 Member since 2022 路 33 posts 路 17 votes

Are any of my San Antonio Real Estate investors changing their investment strategy do to the market shift? If so, how are you switching up your game plan and why? I would love a seasoned investors perspective on this one. 馃檹馃徎

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Joseph CacciapagliaBusiness Member
Lender 路 San Antonio, TX 路 Member since 2020 路 1k+ posts 路 1k+ votes
3y

I've been buying land all cash and selling it with owner financing. This has worked very well for creating cash flow while avoiding long term market exposure. I started with this strategy late last year, and it will be where most of my capital goes for the foreseeable future.

I'm still working on a ground up STR, but won't be starting any more anytime soon. I'm also looking for single family homes with good rent by the room potential, but haven't found one yet. I think that will become more appealing as our rents have risen a lot.

I have several clients who recently switched their focus to condos. They have a much higher DOM than most SFHs, so the theory is there will be more distress there, and therefore more opportunities for discounts. Only a couple have pulled the trigger on those so far, but it seems like a decent thesis.

A lot of them have continued to buy high end homes for STRs as well. You can still find the occasional property that will perform well despite current rates with that business model.

[email protected]979-218-2286
Joseph Cacciapaglia powered by Morty
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  • Joseph CacciapagliaBusiness Member
    Lender 路 San Antonio, TX 路 Member since 2020 路 1k+ posts 路 1k+ votes
    3y

    I've been buying land all cash and selling it with owner financing. This has worked very well for creating cash flow while avoiding long term market exposure. I started with this strategy late last year, and it will be where most of my capital goes for the foreseeable future.

    I'm still working on a ground up STR, but won't be starting any more anytime soon. I'm also looking for single family homes with good rent by the room potential, but haven't found one yet. I think that will become more appealing as our rents have risen a lot.

    I have several clients who recently switched their focus to condos. They have a much higher DOM than most SFHs, so the theory is there will be more distress there, and therefore more opportunities for discounts. Only a couple have pulled the trigger on those so far, but it seems like a decent thesis.

    A lot of them have continued to buy high end homes for STRs as well. You can still find the occasional property that will perform well despite current rates with that business model.

    [email protected]979-218-2286
    Joseph Cacciapaglia powered by Morty
    WebsiteView Page
    2Reply
  • Natalie Godoy
    OP
    Real Estate Agent 路 San Antonio, TX 路 Member since 2022 路 33 posts 路 17 votes
    3y

    Hi Joseph, 

    I see that you're one of our disclosed investors here at new western. Happy to have you on board! Thank you so much for sharing the approach you're taking with your investments. Love to see that you're adapting and finding ways to get creative with the opportunities that come your way. 

    0Reply
  • Ruben Loredo
    Member since 2021 路 30 posts 路 11 votes
    3y
    I am pivoting from the LTR/STR segments to the MTR segment.  I lucked out and have property centrally located in the city near points of interest and several major employers. For me, moving from the LTR strategy allows me to tap into additional cash flow and be more nimble in a changing environment (I can always move back to an STR if I want to).  Moving away from the STR helps reduce some of the turnover expenses and general wear and tear on a property.  Only into it for a month now and will reassess after another 2 months.
    0Reply
  • Eliott Elias
    Investor 路 Austin, TX 路 Member since 2021 路 9k+ posts 路 5k+ votes
    3y

    I am now hitting seller finance with low interest rates hard. This is to use as little cash as possible and lock in a great rate 

    0Reply
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