All Forum Posts by: Robert Neal

It's a new week full of new opportunities! Whether you are looking for some ugly houses to fix up and sell, places to BRRR for rental income, or development opportunities then I'm your guy! I acquire on average of 50-60 off market properties every single month. These properties include single family dwellings, multi-family units, lots, and commercial tracts all across San Antonio, Corpus Christi, New Braunfels, and Seguin in all conditions and sizes.

I HAVE 14 PROPERTIES AVAILABLE RIGHT NOW!!!

@Eric Holloway

Hey Eric! Hope the family is doing well! If you have any questions or need anything at all please don’t hesitate to reach out.

Morning Elkin!

San Antonio overall is a great city for buy & hold investment properties. Generally speaking you get steady appreciation (much like the Austin and DFW markets where big tech companies are migrating to) but it's also a great market for positive cash flowing properties. I personally prefer Lackland AFB and surrounding areas for affordable cash flowing investments.

Best of luck!

R. Neal

Most folks that I have worked with either have kids or entertain the idea of having children in the future. My main point is that a 2/2 will limit your pool of potential tenants far more so than a 3/2. 

I would not necessarily write it off just yet. I can see where there is potential, I would just be careful. Are you partnered up with any agents/wholesalers in your area that send you off market properties or discounted on market properties? I may would start there and see what is out there as opposed to just relying on him to bring you deals. I know the DFW market is insanely competitive too!

Great question!! I would recommend a normal 3/2 all the way unless you're shooting for a very small MF unit with a 1/1 on each side. Even then I would still probably do a 2/1 and 1/1. I really don't think it even comes down to the location and who you would be renting to. If you are building closer to downtown you will more than likely (although not always) leasing to individuals working in the service, entertainment or humanitarian fields. In this case you would likely be renting by the room. Therefore a 3/2 would be best. Contrarily, if you are building near the military bases or in more "suburban" areas such as further out on the NE or NW sides of town you will likely be renting the whole unit to a family. Of course, unless you build near a university. In this case a 3/2 still works best for a family.

A 2/2 unit for a stand alone home is just kind of awkward. Maybe if you provide a little more insight on why you guys are considering a 2/2 and the location I can better help.

Best of luck!

John, 

I can narrowly see potential for a valuable relationship here. However, partnerships are risky especially if there is not a detailed partnership agreement drawn out beforehand pointing directly to where ALL costs, expenses (both planned and unexpected), and profits are to be split and/or allocated to each partner. Are you purchasing the home AND funding the rehab? If so your partner's (handyman) profit will be wholly dependent on the final net profit of this investment and not his work. Not all flips are successful or sell at the targeted ARV you project. Is he willing to take on this project and do the work even if the flip sells under your targeted value which will eat into his profits or will he expect you to fund the normal value of his work?

Partnerships are normally created to diversify risk and pool resources together. It seems to me that this project would place all the risk on you as well as require 100% of your funding. I honestly do not see the value in this partnership unless you trust this gentleman like a brother and looking to build a relationship for ongoing projects.

I used to work in a law firm that specialized in buyer/contractor litigation and this is giving me deja vu....Again, I do not know the situation here as well as yourself. I personally would recommend thinking this through in depth, consider hard money and utilize BRRR if it is a rental or just leverage your capital with a qualified hard money lender for a fix n flip. I have helped numerous investors into their first hard money investments. Why take on the risk with your capital when you can use someone else's and still pull profits, higher ROI and cash on cash returns?

Wishing nothing but the best for you John!

Hi Firen!

I can speak on behalf of San Antonio. I cannot vouch for the DFW markets but would certainly concur with the other members in that you would be best banking on appreciation as opposed to cash flow solely based on market research. However, here in San Antonio the 1% rule is absolutely obtainable. I have a few properties available right now selling around $100k, turnkey and tenant occupied with no rehab needed renting at $1050-$1100/month. On top of that San Antonio is a growing and appreciating city. We have Austin just up the road, big tech companies continuously migrating in and breaking ground, and I personally see out of state investors as well as investors from other major cities in Texas moving their money to San Antonio real estate nearly daily. If you are looking for a BRRRR investment with $100k all in and looking for immediate cash flow plus appreciation I would certainly recommend at least checking out San Antonio. Lots of great properties around the military bases here and great tenants as well.

Good Luck!!

Originally posted by @Bruce Lynn:

@Robert Neal  with runup in Austin prices, do you think there are people driving daily from SA to Austin for work, or do you hear or feel there are today or will be a significant amount of commuters?  Any express bus service now?

 Bruce,

I think right now you have so many folks working remotely that the commuting issue is in fact not an issue and to be honest I really think this new trend of remote work will be around for the long haul. With that being said there are still a plethora of people who make that commute. If you live in East/Northeast San Antonio and are able to work South of Downtown Austin you really aren't looking at more than an hour long commute or so. 

@Anthony Holloway

Very hard to go wrong with San Antonio for rentals. Lots of big tech corps headed to central Texas resulting in an even higher demand for homes with scarce inventory. Would strongly recommend San Antonio as you get the same dominant appreciation at Austin at far less competitive prices. I have personally noted numerous of my investors from out of state or even in some of the other major cities in Texas making a rush to San Antonio in just the first two weeks of 2021.