Originally posted by @Steve Watson:
From an out of town investor, I feel that value add potential may be more difficult versus in town control of contractors. More of a turnkey property would be desirable.
I visited San Antonio in June for the first time. My wife and I enjoyed the river walk. We did look for SFH while we were there. But multi-tenant housing seem to be cash flowing at this market high.
Cash flow is what I want. Do you know of another market?
I'm not sure we've reached our absolute peak however, I do agree that we are close. There's still opportunity in the San Antonio/New Braunfels market to find duplex properties in the $200K range collecting rents around $1,000 per door in class B neighborhoods. If you're comfortable with class C properties, you'll find that they will cash flow more for you, but there's generally higher capital expenses with these properties due to differed maintenance and the other issues that sometimes come with this class of property. Property Management is generally harder to find for class C or any property collecting under $1,000 per door, but there are managers out there willing to take on class C portfolios.
Right now new construction duplex properties are selling for around $350k-$400k (rents $1,495 per door). A new fourplex community will be breaking ground in the first quarter of 2018 on the West side of town (near Sea World), and those will be priced at around $600K. Most of the new construction in the San Antonio/New Braunfels area is being purchased by 1031 buyers from out of state.
The San Antonio market has properties that will suit most any investor and has the benefit of a job market that's fortified with multiple sectors (government, tech, manufacturing and healthcare).
Feel free to contact me if you would like to discuss further.
