All Forum Posts by: Seth Teel

@Sam McCormack Nothern KY is likely where will be looking: Covington, Fort Thomas, Newport areas.

In 2023 the state approved property "tax cuts." It only applies to your homestead (personal home), and it amounts to less than $500 for most people, and doesn't go into effect until 2025. In my opinion it was a political stunt. 

As for the Midwest, I am very partial to St. Louis, because I lived there for 13 years prior to moving back to Texas. The city has a ton of small multi-family housing stock and very reasonable prices.  We are also looking at Cincinnati and Louisville (I have also lived in Louisville).  

@Cindy Cheng

I'll start off by saying, many people invest in rental property here in Texas.  And many people have been successful in both appreciation and cash flow.  That being said, if I didn't live here I wouldn't own any rental property here. Plain and simple, there are just better markets for cash flow with less archaic tax structures and market swings.  I've had rentals here since 2012, and still have a couple.  However, unless I was just looking for a long term appreciation strategy this isn't a great market IMO. Texas's only tax revenue source (besides sales tax) is property taxes.  Your property tax will go up every year regardless of whether your property value actually increases or not.  The only way to combat this is to play their stupid game an fight your property taxes every year.  Even if you hire a professional to handle it, there's no guarantee your property taxes will be commensurate with your actual property value. Some folks will argue properties are typically taxed less than their fair market value, and that may be true, but it's the amount of annual taxes your pay (regardless of actual value or assessment) that will affect your bottom line.

Additionally, until the recent market correction both property values and rents have increased at a rapid rate. In a city like San Antonio, with a serviced-based economy, where over 50% of the population rent, and 17.6% live below the poverty lie, this creates rent-to-income spatial mismatch that's not sustainable.  It also creates a market where the best cash flow is found among the class D slums.  IMO this is no way to make a living, but if chasing rents and ignoring tenants is the strategy, then you can definitely hit your 1%+ rule here in San Antonio.

For my money we've been looking at small multi-family properties in mid to large size midwestern cities.  Acquisitions costs are low, property taxes are low, available housing stock is good, and there's always a need for workforce housing and rentals for young professionals. 

 We look forward to meeting you!

@Cindy Cheng

Tobin Hill is a great neighborhood. There is decent diversity in house stock; so you could invest in SFRs, duplexes, 4-plexes, and small multi-family. Over the last decade the property values have risen significantly. This may affect your ability to hit a desired cap rate or monthly cash flow. That being said, it's likely the area will continue to appreciate given its location relative to Downtown and The Pearl, and all of the Lower Broadway redevelopment. From a rental perspective, it is a desirable area for tenants, due to its walkability, proximity to the St. Mary's Strip, and several universities (SACC, Trinity, UIW, etc.). I've owned property there off and on over the last 13 years, and would welcome an opportunity to invest there again. If I were to do so, I'd definitely look for small multi-family as opposed to SFRs, unless you're wanting to create a short-term rental(STR). That opens another can of worms. Let me know if you need more info on STRs and the City's ordinance.

 Mark we'd love to have y'all join us.  We hope to see you there.

Hey Y'all,

Our next monthly real estate investor MeetUp is coming up Wednesday July 10th, 2024.

We know you'll be fresh off 4th of July celebrations and ready to network. So, bring your knowledge, your deals, your services, your REI needs, and questions.

All are welcome: investors, agents, contractors, lenders, vendors, and newbies interested in learning more about real estate investing.

Wednesday 7/10/24, 6pm - 9pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).

This will be a casual happy hour style event.

All are welcome.

There is no cost to attend.

We hope to see you there.

FB Event Page: https://www.facebook.com/events/1634219837362514/

This event is sponsored by Distilled Properties (a division of Somos Real Estate).

Hey Y'all,
Our next monthly real estate investor MeetUp is coming up Wednesday June 12th, 2024.It's hot out, so come join us in the AC at Joey's. We'll be ready to network, so bring your knowledge, your deals, your services, your REI needs, and questions.

All are welcome: investors, agents, contractors, lenders, vendors, and newbies interested in learning more about real estate investing.

Wednesday 6/12/24, 6pm - 9pm @ Joey's (2417 N St Mary's St, San Antonio, TX 78212).
This will be a casual happy hour style event.

All are welcome.
There is no cost to attend.
We hope to see you there.
FB Event Page:  https://www.facebook.com/events/360307633353136/

This event is sponsored by Distilled Properties (a division of Somos Real Estate).

REMINDER: Next Wednesday 5/8/24 @ Joey's!

See y'all there!