San Antonio BRRR number 2

[Kyle Varga]

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $136,000
Cash invested: $43,402

Purchase, full remodel. Rented for $2545 per month refinanced. The downside of 6 months before I earn all my cash back.

What made you interested in investing in this type of deal?

This is my long term strategy. A few more of these and I can quit my day job.

How did you find this deal and how did you negotiate it?

Made offers on multiple properties till someone accepted the numbers I needed.

How did you finance this deal?

Hard money of 102K Used my HELOC for the remainder.

How did you add value to the deal?

Complete remodel including open concept kitchen and living upgraded baths and cosmetics on the exterior.

What was the outcome?

The appraisal came in a little lower than I had hoped. But the cash flow was nearly $500 more than I had anticipated.

Lessons learned? Challenges?

Stop hiring individual contractors. Took way longer than it should have to complete the remodel.

[Tommy Daggett]

@Kyle Varga Hey man, way to go! Looking forward to being able to quit my day job one day, though it's a great company.

I myself am looking to at the San Antonio market to invest, though not at the moment. 

I am at 10K saved, looking to get to 50k by the end of 2023 to invest in San Antonio. 

By that time you'll have quit your day job. 

Good luck to you!

[Zachary Lozano]

@Kyle Varga that's incredible man. I am looking to BRRRR in San Antonio as well. I'm going to drive some neighborhoods this weekend.

If you don't mind my asking, what neighborhood(s) were you able to find deals in?

[Kyle Varga]

To be honest I find all of my deals on the MLS. I just submit a ton of offers till something bites. I have found deals all over but I work on the Eastside because I have a good maintenance guy on that side of town.

[Caleb Brown]

Nice work! Crazy rent.

[Ola Dantis]

Totally agree with what you said about piecemealing the subs. It ends up costing more and taking longer in some cases. 

Looks like a solid deal. Congratulations 🎉 

[Michael Kinsella]

Congrats Kyle! Best of luck on continuing to build your portfolio.

Best,

Michael

[Joseph Cacciapaglia]

@Kyle Varga Wow, $2,545? You must have done a great remodel, because that's a premium rent here in San Antonio.

[Allen Wu]

Wow! Great deal! Which part of San Antonio? I invest in an SFH south of helotes.

[Travis C.]

What area can you possibly buy that cheap in San Antonio and rent it ultimately for $2500? This, up front, doesn't marry to my market knowledge locally here and would be curious on ARV if you don't mind me asking.

[Travis C.]

@Joseph Cacciapaglia exactly my question as a local here myself. I think he said on the east side and that is maybe a Helotes or Stone Oak rental in the most upscale neighborhood, at that, and those areas are on the northside.

[Kyle Varga]

Originally posted by @Travis C.:

What area can you possibly buy that cheap in San Antonio and rent it ultimately for $2500? This, up front, doesn't marry to my market knowledge locally here and would be curious on ARV if you don't mind me asking.

I'll be honest, when I purchased the property, I expected it to rent for around $2000 a month. It's in a nice HOA on the northeast side of town. Large 5 bedroom home. The only reason I even tried for $2495 + $50 for having a pet. was a few comps were at or higher and weren't remodeled, so I went for it. Guess the market liked my remodel because it went fairly quickly for being on the higher end. I have another rental in the same zip code going for $1600 that I will have to increase this next renewal cycle.

[Travis C.]

@Kyle Varga wow that's really good though! Congrats on that one for sure! Gives me further hope as I'm about to snag a few more. I typically stay on the far west side outside of 1604 to shun city taxes.

[Elin Trinh]

Great Deal!!

[Allen Wu]

Originally posted by @Kyle Varga:

Originally posted by @Travis C.:

What area can you possibly buy that cheap in San Antonio and rent it ultimately for $2500? This, up front, doesn't marry to my market knowledge locally here and would be curious on ARV if you don't mind me asking.

I'll be honest, when I purchased the property, I expected it to rent for around $2000 a month. It's in a nice HOA on the northeast side of town. Large 5 bedroom home. The only reason I even tried for $2495 + $50 for having a pet. was a few comps were at or higher and weren't remodeled, so I went for it. Guess the market liked my remodel because it went fairly quickly for being on the higher end. I have another rental in the same zip code going for $1600 that I will have to increase this next renewal cycle.

[Allen Wu]

Originally posted by @Kyle Varga:

Originally posted by @Travis C.:

What area can you possibly buy that cheap in San Antonio and rent it ultimately for $2500? This, up front, doesn't marry to my market knowledge locally here and would be curious on ARV if you don't mind me asking.

I'll be honest, when I purchased the property, I expected it to rent for around $2000 a month. It's in a nice HOA on the northeast side of town. Large 5 bedroom home. The only reason I even tried for $2495 + $50 for having a pet. was a few comps were at or higher and weren't remodeled, so I went for it. Guess the market liked my remodel because it went fairly quickly for being on the higher end. I have another rental in the same zip code going for $1600 that I will have to increase this next renewal cycle.

I’m in the NE below Helotes and it’s about $1600 a month too. It’s a 3 bed and 2 bath 

[Benjamin S.]

Looks like a good deal!  How much was the remodel total and what was the scope?

[Tanya Lechner]

This is awesome, Kyle! Anything over $2000 on the northeast side is hard to come by. Was it outside loop 1604? Or closer to Converse? I'm curious because I'm working with a couple investors and would love to point them in the right direction to find $2000+ rents.