Out of state investing in San Antonio, TX

[Sevan S.]

Hello,

I live in LA and I will be visiting San Antonio over summer to get my first rental property. I am looking for something under 200k. I am unclear as to how I can price future rental income since there is not really a correlation between size and price within the same neighborhood. Also, what regions should I mainly be looking for? How long do properties generally last in the market before going on rent?

Thank you so much!

Sevan

[Sterling Williams]

Sevan,

I would start by interviewing agents and get their take on the market. A good agent will be able to get you into a couple of designated markets based on your asset criteria. Once you get to this point, start analyzing the submarkets selected with the comps your agent will be providing. With the comps provided, you’ll be able to narrow in on a fair rental value based on condition, price per sqft, number of beds/baths, asset class etc. Now if you're looking at multifamily, you may be also factoring in utilities such as electric, gas and most commonly water due to many MF properties within SA being on a common water meter. Once you have the numbers, start running through the BP calculators.

Find a good property manager as well. An agent’s projections on rents are a good start, but your property manager will have a good feel on the pulse of the rental market and should advise and assist if the property is in need of repairs to stabilize.

www.rentometer.com is a good resource if you want to take a quick look at local rents, but I caution you that they do not give you an absolutely accurate picture of what rent a property can achieve and can under or overestimate in many cases.

Establish your team and start analyzing deals. If you get the feeling that your agent is pushing you into questionable deals, move to the next one until you’ve found an agent and team looking out for your best interest.

There’s a lot of great local agents and property manager’s on this forum who can help assist you in purchasing your first San Antonio investment property.