All Forum Posts by: Andrew White

Hey @Timothy Villa Welcome to the community! I'm a local wholesaler, STR investor and generally curious real estate dude. Just left my W-2 to go full time Real estate but I'll tell you what...it ain't passive!

Hey @Erich Edwards.  I run Forged Home Buyers, a San Antonio wholesaling business, and my business partner is an agent with Virtus Realty.  Virtus is a commercial team here that is VERY active.  Shoot me a message man and I'll happily connect y'all!

Are you local here?

Hey @Edward Zachary Samperio! Welcome to the area! I'm a huge fan of San Antonio as an STR market, but it is, like most "mature" markets, very sensitive about WHAT performs well. The era of "everything prints money on Airbnb" is LONG GONE! That said, here is how I would proceed...

For some background, I used to run an STR management company in SATX and we peaked at about 35 properties under management. I've since closed down to focus on other businesses and run my own STR's. My 4 personal STR's are all in San Antonio did over $575k in 2024 and on track for $650k in 2025.

I think you are generally looking in the right areas, but there are a few things to keep in mind:
1) Stay inside of 1604.  Air Force basic training happens here, so every week there is a big batch of families coming to see their kids graduate.  Those kids aren't allowed to leave the 1604 loop during their temporary "leave".

2) Downtown can be MEGA, but zip codes are WAY too big to use.  Downtown is about 10-15 years in to a gentrification cycle and varies from block to block.  The nicer areas are already charging a premium so be careful.  If you don't trust your agent enough to tell you not to buy a house, then get a new agent!

3) Understand what works in this market. I have some 2 bedrooms doing $70-80k/yr in revenue, some 4 bedrooms with pools doing $130-160k, as well as a 7 bedroom that cranks out $300k/yr. Each does really well in it's category, but I also made a point to set them up with a good design, the right amenities, etc. This is not a market for a generic, new build, cookie cutter home in an HOA neighborhood!

Best of luck!  

Be very careful with this as a first time project!  There are a ton of complexities with properly repairing a fire damaged house....they sell really cheap for a reason.

Why focus on assumable as opposed to working on Sub2 deals? We have 2 San Antonio sub2 deals that are turn key homes and only require about $20-25k to close (assignment fee + closing costs).

They're a great option!

Investment Info:

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

Purchase price: $265,000
Cash invested: $200,000

1930’s historic home with a converted garage. The property took $350k to renovate, on what was originally a $210k budget, but we transformed it in to a gorgeous 4,500 sqft, 7 bedroom, 5 bath, luxury Airbnb. We have grossed $300k in revenue over the first 12 months of operation, at a ~50% profit margin. The property was appraised at $846k so we got a decent bit of cash back out at closing and are rapidly making our investment back.

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

In retrospect, the answer has to be sheer overconfidence! It was an enormous rehab and I didn't have the experience or the contractors to take it on. But, I had a vision, and I had a decent chunk of capital to start with (don't worry, that didn't last).

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

My realtor is really in to the historic homes in San Antonio and he brought it to me through his contractor (network is everything!). Some other investors had purchased it to flip it and decided they had too many projects going to handle one this big. I didn't negotiate a ton on price as the deal seemed pretty reasonable. They had just bought it from a wholesaler for $250k and I paid them $265k.

How did you finance this deal?

Hard money loan that covered 100% of rehab and 90% of purchase. I believe I put $58k down at closing. Thankfully the lender talked me in to a 24 month term as it took us the entire 2 years!

How did you add value to the deal?

The property required a full gut rehab as it had been vacant for 15+ years. Foundation, framing, subfloor, roof, windows....EVERYTHING got redone and updated.

What was the outcome?

All in for about $650k and property appraised for $846k. We did a cash out refi at about 70% so we owe about $600k on the note. The property is cash flowing $10-15k every month and has been an absolute juggernaut as a short term rental.

Lessons learned? Challenges?

Vet your contractors and engage partners if you don't have the experience for the job.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Todd Worrich - Jason Glast group w/ Phyllis Browning

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $60,000

1930’s historic home with a converted garage. We are renovating it to be a 7+ bedroom luxury Airbnb.

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

I have been looking for properties that fit both the BRRRR model and work as a short term rental. This property is in a nice historic area of town and is close to the Medical Center and downtown. With 7+ bedrooms we should be able to sleep 20+, so the pool of comparable properties is pretty small, but mighty. Expected annual revenue if $140k.

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

My agent actually found this off market. Some other investors were planning to flip it but decided to sell instead. My agent knew one of the contractors involved in the project and got me connected with the sellers. We signed a simple contract (my typical wholesaling contract) and were off to the races!

How did you finance this deal?

Hard Money Loan

How did you add value to the deal?

It is a full gut job. We are reconfiguring the kitchen layout and some other spaces. It is a 5bed/2.5 bath main house right now and will become a 5bed/4 bath, with 2 of those bathrooms being en-suites. The garage conversion doesn’t have a kitchen right now and will be made it to a proper 2/1 with a living room and kitchenette.

What was the outcome?

We are just starting construction but plan to invest $210k in to the renovation with and ARV of $650k.

Lessons learned? Challenges?

Pick your lender wisely! More lessons TBD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Corridor Fundig rocks!

Hey folks,

I’m looking to purchase a property in Memphis, TN from out of state and am looking for recommendations for a mortgage broker and established property management team in the area.

Any input is greatly appreciated!

Thanks,

Andrew White

@Todd Rasmussen, No worries! Although we're on good solid ground, I've always been pretty passive about my retirement investing. So REI will be my first foray in to really making the picks myself. I'm working to educate myself here and build a portfolio before also taking a more active role in our retirement investing but....one skillset at a time! Thanks again for looking out; I'm new to this community but the support has been great so far!