Driving San Antonio

[Jim Robertson]

I am an Austin investor, but looking at other markets for cash flow properties. I was planning on driving around San Antonio over the next few weekends to check out some neighborhoods. Any recommendations on areas to look at? 

I am looking for properties with good bones that may need some cosmetic renovations and updates. What are some good B areas that you have had success in?

[Seth Teel]

On the opposite end of the spectrum from @John Barr, I have had great success with duplex and multi-family rentals in the central core (closer to downtown the better).  Although recent popularity and appreciation has priced out most cash-flow investors in areas like Tobin Hill, Lavaca, Dignowity Hill, and Mahncke  Park, there are still some deals to be had.  Of course these areas have older housing stock and rarely require just a cosmetic rehab.  Close to the neighborhoods I just mentioned are also good MF rental areas: Beacon Hill, Five Points, Highland Park, Durango/Roosevelt, even Denver Heights is coming up.    

Ultimately it boils down to your strategy, the comps, and comfort level with the area. For comfort level I've always used what I call "The lady-friend Test"  - Would I send my wife/girlfriend/etc. to go pick up rent at night in this specific area?  If they answer is Yes, and the numbers work, then I buy. I use this test regardless of whether I will be property managing it myself or paying someone else to.