Even with a lower prime rate, the affordability boost is limited if home prices remain elevated and rents don’t increase proportionally.For investors, this might be the time to get creative: value-add strategies, BRRRR, or exploring underserved markets where rents still have room to grow might help improve cash flow potential.

What measures have you taken to ensure some safety and deter local nuisance?

We provide high-quality photos and a virtual tour with room measurements.

Actual money, measured in dollars.

Your loss is limited to the amount you invested.You can sell shares of publicly traded reits on the stock market during trading hours.

After reviewing the latest ordinances, reports, and city guidelines, here’s a summary of my findings as of 11/18/2024:Key FindingsPermit Types and Fees:Type 1 (Owner-Occupied): $300 for 3 years.Type 2 (Non-Owner-Occupied): $450 for 3 years.Density caps apply to Type 2 permits (12.5% of block face).Enforcement:3 violations in 3 years lead to permit revocation.Fines up to $500/day for violations.Hotel Occupancy Tax (HOT):City: 9%, County: 1.75%, State: 6%.Platforms like Airbnb and VRBO will remit directly to the city starting Feb 2025.Platform Obligations:STRs must have valid permits; unpermitted properties will be removed by platforms like Airbnb.Special Exceptions for Density Limits:Require approval by the Board of Adjustment (BOA).Zip Code BreakdownI focused on these 11 zip codes:Under San Antonio Rules:78205, 78204, 78215, 78210, 78212, 78245, 78258Independent Municipalities (Separate Rules):Alamo Heights (78209)Leon Valley (78238)Helotes (78023)Next Steps:Research density caps and zoning in specific zip codes.Dive into independent municipality rules for Alamo Heights, Leon Valley, and Helotes.Evaluate market maturity and income potential using tools like AirDNA.If anyone has experience operating STRs in San Antonio or these specific zip codes, I’d love to hear your insights, especially about density limits, enforcement trends, or community sentiment.Thanks in advance!

Although it does reduce the premium slightly for that particular rating factor, it is not optional on the part of the HOA as an intentional cost saving measure.  

My guess is in that price range and limited window, you will not make enough additional appreciation to make renting it out make sense, so unless you planned on keeping it forever as a rental you are probably best off selling and cashing out.

It’s also easier to attract investors because they know their risks are limited to what they put into the LLC.Finally, managing the property becomes simpler under an LLC.

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck