Anybody getting close to the 1% rule in good areas of San Antonio

[Jerry Lundergard]

Hello everybody! I am wondering if the 1% rule is a thing in good areas of San Antonio now? Im talking about after a solid rehab and all in price in either the NW or NE of San Antonio? The best I have been able to do is about .8% with a 5% cash on cash on my last 2 purchases here. If some folks dont mind sharing their numbers on recent purchases here in desirable areas I am curious.

With these numbers I have a hard time deciding if it makes sense to continue to aquire rentals VS just buying more S&P index funds VS just holding cash (it burns holes in my pocket and I start buying dumb sh$t!)

Any swamis out there have a crystal ball or guess what our appreciation might be next 5 to 10 years? 3% a year, 5% a year, side ways? Are we gonna catch Austin tailwinds with our appreciation?

[Joseph Cacciapaglia]

I'm meeting more and more investors that are looking at San Antonio as an appreciation market, more than a cash flow one. The theory is that we are priced significantly below the remaining top 10 cities. This implies that we have a long way to go, in terms of appreciation, relative to just about anywhere else over the next several years. These investors are much more focused on total return vs. cash on cash. If you are looking in "good areas", you are competing with both these investors and retail buyers. The strategy that @Will Pritchett described seems to be the preferred method for cash on cash focused investors. He's also right in saying that there are still good cash flow opportunities in other parts of the city.