Hi folks, I am a new investor looking for deals and building a team in Texas. I live in Austin and I've done 4-5 flips and buy-n-holds here. The cost of remodeling in Austin has increased tremendously in the last few years making the flip/brrrr somewhat challenging. I have been looking at some surrounding areas like San Antonio, San Marcos.
Though Dallas and Houston are good options, I decided against them due to the distance of travel. To me, if I want to invest in a city like Dallas that will cause me 10 hour round trip to visit, it makes no difference than buying one at a midwest city that take the same amount of time to fly in and out.
What I want to learn is how to tell what is a good area in San Antonio for BRRRR. Is the AFB a good area for rental income?
If you have some insights please share, and I am going to do some in depth analysis and report back to you my findings.
@Billy Zhao Seguin is also a good option and not too far from Austin. There are some large industries operating there and a good opportunity for rentals as there's a college campus there as well. Prices are also better than in San Marcos.
I really like the Lackland AFB area for value add rentals or BRRRR deals in San Antonio, but haven't seen a whole lot of inventory there lately. If you aren't afraid of a rougher area, the west side has some really unbelievable numbers for BRRRR deals and they also have a shortage of single family rentals. I have a PM contact who will manage over there as well and GC options if you need them.
@Billy Zhao. It’s a good mix. I’d say single fam is more families and young professionals like in most cases. Lots of great neighbors for fillips and same for rentals. Problem with rentals is property taxes are high but you’re use to that coming from Austin. So we buy rentals in other areas but flip here.
What is the main industries that San Marcos support? I didn't really consider it since I thought it was either students or the outlet mall that both are struggling due to Covid. But we should look at some deals and see what the market is like. Last time I checked it is not all that cheap either especially closer to campus.
@Billy Zhao we have amazon and lots of industrial businesses along with working professionals. Prices are high right now but you can find a few good off market deals here and there. There are some pockets where you can pick up houses for under 250k and some under 200k.
@Cameron Whitehead Thank you! I've love to start looking around San Marcos a bit. Just realized that Amazon built a distribution center there. I remember hearing someone on the news said that eventually Austin metro and SA metro will be connected, and San Marcos will be the ideal spot for a huge international airport. A long shot, but it would be nice for a long term hedge.
@Billy Zhao Seguin is also a good option and not too far from Austin. There are some large industries operating there and a good opportunity for rentals as there's a college campus there as well. Prices are also better than in San Marcos.
I am a local SA investor, focusing on areas in the northeast part of town, sandwiched between Randolph AFB and Fort Sam Houston, and easy access to I-35 to New Braunfels/Austin.
In my opinion the NE area is great of BRRRR properties, good rental base, and areas with older homes that allow for that forced equity.
Seguin is a great area. Lots of employers and the college. Also a lot of run-off tourism from New Braunfels in tubing season. I do STRs in Seguin and I'm just starting on my first BRRRR.
Side question for @Melissa McRay Johnson. I just listened to your podcast on lead gen and how to handle contractors. Great stuff! Are those rule of thumb prices still relevant today as they were in 2018? Namely, 2.5k bathroom, 1.25/sqft paint, 2.25/sqft flooring, 1200 kitchen with good cabinets. Thanks!
Could always come up a little north in the Temple/Belton area? Just a short drive up I35. Area is growing for sure; Major employers you have Baylor Scott and White Hospital, Temple College, McLane, University of Mary Hardin Baylor, and there are plenty of Military from Ft.Hood that live in Temple/Belton as well. I think its a pretty good "path of progress" for Austin and Waco. Salado is starting to get the Round Rock/Georgetown prices.
If you decide to come up this way would love to help in any way I can and learn from you.
Seguin is a great area. Lots of employers and the college. Also a lot of run-off tourism from New Braunfels in tubing season. I do STRs in Seguin and I'm just starting on my first BRRRR.
Side question for @Melissa McRay Johnson. I just listened to your podcast on lead gen and how to handle contractors. Great stuff! Are those rule of thumb prices still relevant today as they were in 2018? Namely, 2.5k bathroom, 1.25/sqft paint, 2.25/sqft flooring, 1200 kitchen with good cabinets. Thanks!
Also, I don't know how to blue text reply haha
Hi Adam!
Generally yes, those prices have stayed pretty accurate for me. Although with Covid I know the cost of materials has been higher so they may need a little temporary adjustment.
Seguin is a great area. Lots of employers and the college. Also a lot of run-off tourism from New Braunfels in tubing season. I do STRs in Seguin and I'm just starting on my first BRRRR.
Side question for @Melissa McRay Johnson. I just listened to your podcast on lead gen and how to handle contractors. Great stuff! Are those rule of thumb prices still relevant today as they were in 2018? Namely, 2.5k bathroom, 1.25/sqft paint, 2.25/sqft flooring, 1200 kitchen with good cabinets. Thanks!
Also, I don't know how to blue text reply haha
Hi Adam!
Generally yes, those prices have stayed pretty accurate for me. Although with Covid I know the cost of materials has been higher so they may need a little temporary adjustment.
You gave so much value in that episode and continue to do so. Thank you!