Flipping vs Buy and Hold in San Antonio

[Nathan Williams]

Hey All!

I'm new to posting to the forums here. I am a newer investor living in Austin. I have done 6 deals in the past 2 years in Austin (4 flips, 2 buy and hold). As you are aware, the flip market has its opportunities and challenges. Low DOM and related seller advantages vs. extremely low inventory and crazy competition on the front side. Unless you are a cash or hard money buyer you could be facing a lot of difficulty. 

That being said, I wanted to explore the San Antonio market. From my research on the forums, San Antonio has been described as a "tricky" market. My understanding is that flipping can be difficult (higher DOM, low ROI etc.) but the cash flow for rentals is favorable. I have also read a lot about Section 8 strategies.

My questions to the community are:

1. Is my understanding correct with regard to flipping in SA? If I were to flip, which neighborhoods are in demand, or heating up? Surely there are some rough areas in SA. But the East Side of Austin was also very bad at one point. I'm curious to know the up and coming areas.

2. Regarding Buy and Hold / Rentals. Which neighborhoods do you prefer? I'm looking at more favorable tax areas, lower crime, decent schools, etc.

I will be touring San Antonio this Friday with a wholesaler. Hoping to educate myself further!

Thanks for your time!

Nathan