San Antonio BRRRR Reality Check

[Alexi Schreier]

It would be great to hear from people with experience in the San Antonio market how realistic it is to successfully BRRRR a rental property there.

I think San Antonio has a lot going for it: job and population growth, diverse economy with durable industries, property values rising but still relatively affordable, the list goes on...

However, I've been having a hard time finding deals (on the MLS) with the following criteria:

- In decent neighborhood (C/B)

- All-in costs are 75% of ARV

- Cash-flow after a refinance where you pull out 75% of the ARV

From what I've seen, the numbers in SA seem to work at around the $190K ARV price point. They usually need pretty significant rehab (which is what we want!) let's call it $50K in rehab. That brings us to looking for properties that are being sold for $90K (90 + 50 = 140 which is 75% of the 190 ARV).

Don't get me wrong, there are some properties out there in decent neighborhoods selling for $90K, but they're few and far between and usually don't stay on the market long.

Would you say this is an accurate reading of the market? Is it realistic to search for deals on the MLS or is it more realistic to work with a wholesaler in this market if you're looking to meet the above criteria? Is the BRRRR method realistic?