In competitive markets like San Antonio and Austin you’ll need to prioritize design and furnishing and I highly recommend using an STR focused interior designer.

Real Estate Investors can play ahead of the game by learning about 1) Real Estate (of course), but not the basic stuff....all the tricks that can make you stay one step ahead of your competition. and 2) Construction - How a house is built and how to fix, remodel and add value.So for #1, you can just make this forum an addiction.

It's a lot of work and very competitive, but it's a living.I see you've been a member of BP for years.

As of now, HELOC rates typically range from 5% to 7%, but it's essential to check with multiple lenders to get the most accurate and competitive rates.Joshua Christensen - I totally agree with these points as well. 

This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

As for whether one has to get quid pro quo in increased rent for improvements, there is also a factor of the quality and longevity of the tenants one gets with an upgraded apartment even when rents are limited by neighborhood competitive pressures. 

It's a 70s vintage deal, 400+ units, with a lot of nearby competition, so certainly there is some risk elevation from the asset/market, but that's the least of the problem here, in my opinion.If the numbers on CoStar are correct, the property was purchased at the very top of the market for $47M, with a $39.4M bridge loan (that would likely mature this year). 

Also with new construction building, that is competition for finding tenants.

Are you implying it’s a bad idea due to competition reasons?

Research local rental market trends for 3-bedroom, 2-bathroom homes to determine competitive rental rates and ensure they align with your financial goals.Consulting with local real estate professionals can provide valuable insights into market trends and potential challenges.