San Antonio investment property – Page 3

January 12, 2017May 17, 2021

Why San Antonio Is A Great Market for Owner Financing

As a buy and hold investor in San Antonio, you have the option of either renting out your investment property, or owner financing it.

I have done both buy and hold strategies in the last 16 years. While I still hold some rental properties, I really like to owner finance properties in San Antonio. I think that the San Antonio market is a good place to owner finance for several reasons:

#1 Huge Blue Collar Hispanic Market

We like to serve the hispanic blue collar market in San Antonio. These are hard working people and are very oriented towards family.

Most of my buyers are electricians, roofers, plumbers, carpenters, painters, cooks, oil workers etc. Many of them have two or three jobs and good income.

They often have large, extended families, and they have the ability to repair the houses that I sell them. To them, hard working blue collar people, I am offering them an affordable opportunity to own their own home.

If the home needs to have a new roof or new flooring, they usually can do the project themselves inexpensively. This saves them money, and it saves me money as an investor because I do not need to spend as much to rehab the house.

#2 Many Hispanics Are Cash Only People

There are hundreds of thousands of hispanics here who lack credit. They may have good income of $4000 to $8000 per month, but they either do not believe in credit, or they have bad credit. However, they have the income and the job stability to afford their own home.

With credit markets as they are, it can be tough for a buyer with no credit or bad credit to get a loan from a bank. It got even harder after the mortgage crash of 2008 and 2009. Sometimes these blue collar buyers have no conventional financing options; even FHA won’t work with them.

Why should a hardworking family that makes $5000 per month have to rent forever? It doesn’t seem fair at all. That’s where I come in.

#3 Owner Financing Is a Win Win for Everyone

Let’s say I have an under market value San Antonio property that I bought for $50,000. To resell it with owner financing, I may need to only spend $5000 to put in flooring, do minor foundation work, clean up the yard, and get rid of junk in the home.

Then, I can sell it with owner financing at $5000 down, $799 per month, 30 year note, 10% interest usually, no prepayment penalty. It is my job to make sure the end buyer has the job and income to support the payments; this is a requirement under Dodd Frank.

Everyone wins in this scenario: Me as the San Antonio real estate investor is making 12% or more per year with no repair costs.

The end buyer gets to own their own home and stop paying rent to a landlord.

The neighborhood gets another home owner who will probably fix up the house, which encourages others to buy and to fix up their home.

The city gets more tax dollars from owner occupied homes, and the local buisness community gets more money from people buying things to fix their homes.

That’s why I love San Antonio owner finance deals. Interested? This is a good San Antonio fixer upper:

Address: 1360 Essex St San Antonio, Texas 78210
Year Built: 1956
Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
Cash Price on San Antonio Fixer Upper: $45,000 CASH ONLY
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps. NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-1360-essex-st rental-comps-1360-essex-st

January 10, 2017January 22, 2017

OFF MARKET – 1360 Essex St San Antonio, Texas 78210

Address: 1360 Essex St San Antonio, Texas 78210
Year Built: 1956
Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
Cash Price on San Antonio Fixer Upper: $45,000 CASH ONLY
Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps. NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-1360-essex-st rental-comps-1360-essex-st
For more information, please contact us.

More Images of this under market value San Antonio Investment Property:

January 4, 2017

How to Save on Rehab Costs and Long Term Property Repairs

Most San Antonio real estate investors buy under market value San Antonio properties, rehab them and then rent them out.

I have several rental properties in my San Antonio investment portfolio, but I have found in the last year or two that construction costs are eating too much into my bottom line.

As the San Antonio real estate market is heating up, construction costs have gone up on some of my fixer uppers by as much as 50%! Rather than spending $10,000 to repair and rent a property, I was finding that I was spending $20,000 or more, and my net return was under 10% per year.

Because of higher construction costs, I am advocating more owner financing my San Antonio properties. Here’s how it works in a nutshell:

I buy the under market value San Antonio fixer upper for $50,000.
I do approximately $5000 in repairs on the property, which may include painting, cleaning, minor plumbing and electrical. Basically, I am doing enough repairs on the property so that I can sell it with owner financing to a blue collar worker and his family. They will be able to complete most of the remaining repairs.
By only doing $5000 or so in repairs on the property, I am able to save at least $10,000 in most cases in construction and rehab costs. This often will push my ROI to 14-15%.
Typical terms for the end buyer are 10% interest, $5000 down, no prepayment penalty, 30 year note.

The owner financing exit strategy has the added benefit of not having any ongoing repair costs, which is great for peace of mind and my bottom line.

In summary, the foundation of my buy and hold San Antonio property portfolio is properties owned in cash and owner financed to qualified buyers. It is the primary strategy I recommend to new investors who want to build passive cash flow.

Here’s a good property that will return 14-15% per year with $5000 only in rehab:

Address: 224 Avondale Ave., San Antonio, TX 78223
Year Built: 1957
Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it. Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
Cash Price on San Antonio Fixer Upper: $49,900 CASH
Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.

January 1, 2017January 6, 2017

OFF MARKET – 224 Avondale Ave., San Antonio, TX 78223

Address: 224 Avondale Ave., San Antonio, TX 78223
Year Built: 1957
Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it. Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
Cash Price on San Antonio Fixer Upper: $49,900 CASH
Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed.
Sold and Rental Comps: sold-comps-224-avondale rental-comps-224-avondale
For more information, please contact us.

More Images of This San Antonio Investment Property:

December 30, 2016January 1, 2017

15.8% Cap Rate Case Study – 1257 Saltillo St., San Antonio TX 78207

This under market value property was purchased by a California cash investor in October 2016. We performed $2000 of clean up and lawn maintenance.

The investor purchased it for $43,000, and the total investment was $45,000. He then owner financed the property for $695 per month, 10% interest, final price $69,900. It took us approximately 30 days to find a qualified buyer.

The total return on this San Antonio, under market value investment property is approximately 15.8%.

We currently recommend that most San Antonio property investors owner finance these fixer uppers, rather than rent them out. Owner financing them means that the end buyer that we find for you will finish any other needed repairs. This reduces your outlay of cash during renovations and increases your rate of return.

Below is more information about this property from the original listing:

Address: 1257 Saltillo St., San Antonio, TX 78207

Description: Investors, this is an under market value San Antonio buy and hold property for you! Only $2000 in repairs that we do for you, and then owner finance it for $695 per month!

Excellent cash flow opportunity with this San Antonio investment property, central AC/heat, 5 year old roof, booming San Antonio Market, very popular location west of downtown, 1257 Saltillo St., San Antonio, TX 78207, 2 beds, 1 bath, 960 sqft, lot size: .1 acres, estimated repairs: 2K, clean/lawn maintenance. After Repair Value: 69.9K, ,

Price: $43,000 firm – cash only

Exit Strategy:

Exit Strategy: Owner Finance with 2k in repairs: 3-5K down, $695 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69.9K.

December 24, 2016

Four Simple Ways to Fund Your First Real Estate Investment

Getting going in real estate investing in San Antonio doesn’t require you to have hundreds of thousands in savings. When I first started investing in San Antonio in under market value homes, I didn’t have much of my own cash. I was able to find sources of funding so that I could buy 50 houses in my first year.

Here are some of the best, simple ways to fund your first few deals with limited cash:

#1 Buy San Antonio Property with FHA Loan

If you are buying your first San Antonio investment property, consider buying one with an FHA loan and putting down 3.5%. A classic way to get started is to buy a two or four unit multifamily property and live in one of the apartments while renting out the others.

I never did this myself, but there is a certain logic in living rent free in your own property while enjoying rental income from the other units.

#2 Hard Money Loans

You can use hard money for a few months to flip a property. Or, consider using the hard money loan so that you can rehab an under market value property, and then get a conventional loan on the property and rent it out.

Hard money loans carry high interests rates of 12-15% and don’t make sense over the long term. But it works fine for a flip, or for holding for a few months until you can get a conventional loan on the property.

#3 Mortgages from Non-Bank Entities

Some people have had trouble qualifying for mortgages in recennt years, and companies such as SoFi and Lending Home online are offering more mortgages. Many loans can be closed in as little as two weeks, and some of them will fund 100% of the purchase.

#4 Asset-Based Mortgage

There are companies today that will loan you money for a mortgage on a San Antonio investment property just based upon the income that the property will produce. One of them is B2R Finance.

Because the loans are based upon the rental income that the property will make, it is a good choice if you are just starting out in San Antonio real estate investing.

December 14, 2016January 6, 2017

SOLD – 3108 Vera Cruz, San Antonio TX 78207

Address: 3108 Vera Cruz, San Antonio TX 78207
Year Built: 1958
Description: Tremendous cash flow investment opportunity – 2 beds 1 bath, only 36K, large back yard with large storage unit and an orange fruit tree, ARV:59-65K, $595-$650 monthly PI/TI.
Cash Price on San Antonio Fixer Upper: $36,000 CASH
Exit Strategy: Owner Finance San Antonio under market value property with 5K in repairs: then resell with: 3-5K down, $695 monthly PI/TI, 30 year amortization, 10% interest, Sales Price 59K-65K.
Sold and Rental Comps: rental-comps-3108-vera-cruz sold-comps-3108-vera-cruz
For more information, please contact us.

More Images of This San Antonio Investment Property:

December 12, 2016

Case Study – Making Big Profit on a Foreclosure

Most of my San Antonio real estate investing portfolio consists of under market value distressed properties that I own in cash. I then owner finance them properties to buyers who lack the credit to buy a home with a bank loan.

This type of San Antonio buy and hold may sound risky to many investors, I can tell you that if you do your homework on your potential buyer – verify their employment, income, get at least $5000 down, do a personal interview – you can often get very good buyers who pay you for many years.

I own several San Antonio investment properties that I owner financed for $5000, $699 to $999 per month. Some of the investment properties are 2/1s, and many are 3/1s.

Whenever possible, I only do a few thousand dollars of clean up on the property, and then I sell it with owner financing to the buyer. Most of my San Antonio owner finance buyers are blue collar workers and they can fix the homes themselves.

I do not have too many problems with foreclosures on my San Antonio fixer uppers, but when I do have a foreclosure, it isn’t a major obstacle to my profits.

This year, one of the San Antonio homes in my portfolio was 126 E. Dullnig 78223. The homeowner had paid me mortgage payments for three years, but I had to foreclose on the owners when they were 60 days late.

I took the house back and spent a thousand dollars to clean it up and get the junk out. It wasn’t in bad shape at all, and I didn’t need to do much.

Then, I was able to sell it for $49,000 cash to an investor in San Antonio, and made myself a $15,000 profit. Below is more about that home:

Address: 126 E Dullnig Ct., San Antonio, TX 78223
Year Built: 1919
Description: Major cash flow on this San Antonio fixer upper distressed property – 4 beds 1 bath, 1100 sqft, two large storage units in the back, Lot Size: .19 acres, Yearly taxes: $1,600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, central HVAC, flooring, 2 room conversions, foundation/roof repairs.
Max ARV: $109-$115k

Cash Price: $48,000

Exit Strategies:

Rent with 30K in repairs: $1150.00
Owner Finance San Antonio wholesale property with 20K repairs: 5k down, $995.00 monthly P/I, 30 year amortization, 10% interest, Price: 99K. Or, owner finance with quick $5k clean up, resell for $79,900.

Not every house that I get back works out that well, but I still do fine. Usually, I just clean up the San Antonio foreclosure and resell it with $5000 down again to another buyer. I have gotten some homes back three times and just keep reselling it for the same $5000 down.

December 4, 2016

Buy in San Antonio TX Now Before Prices Double!

Since the market crash in 2007 and 2008, San Antonio real estate prices have changed a lot. We were fortunate during the crash somewhat because our prices in San Antonio did not dip nearly as much as other places.

One of the long term benefits of investing in San Antonio real estate for cash flow is that the prices are quite steady overall. This is due to the general strength of the Texas economy, low tax rates, lack of red tape and a general pro business mind set.

When the market takes a dive, you will lose value on your home like anywhere, but the prices on homes in San Antonio in 2007 and 2008 only dropped in the area of 10%.

These days, however, the San Antonio real estate market is booming and prices on San Antonio investment properties could be rising again. Many local experts think that the real estate market in San Antonio is being driven by an increase in jobs and low mortgage rates. The number of people moving to San Antonio is still very strong, and this is driving up the real estate market.

Also, oil prices have dropped in 2016, and gas is under $2 per gallon and should stay there for the forseeable future. Any time oil starts to get near $50 to $60 per barral, more Texas rigs start to frack for oil again, which also helps the local job market.

All of this to say, these days you can still buy San Antonio investment properties of mine for cash flow for under $50,000, but this may not last. With the incoming Trump administration, we also could see cuts in taxes and regulations, which could send the San Antonio real estate market even higher. So now is the time to invest in San Antonio real estate.

With the below property for $49,000, you will be able to generate 13-14% ROI.

Address: 8013 FM 1518, Somerset, TX 78069
Year Built: 1955
Description: Tremendous cash flow investment opportunity in South San Antonio suburb, excellent school district and low crime rating, 3 beds 2 bath San Antonio investment property under market value, 2150 sqft, land: .16 acres, built: 1955, tax value: 84.9K, yearly taxes: $2,400.00, estimated yearly insurance: $1,000.00, Estimated Repairs:10K, ARV:79-89K
Cash Price on San Antonio Fixer Upper: $49,000
Exit Strategy: Owner Finance with 10K in repairs: then resell with: 5K-10K down, $895 monthly PI/TI, 30 year amortization, 10 % interest, Sales Price 89K.

December 2, 2016December 2, 2016

So You’re Thinking About Real Estate Investing in 2017!

Now that the presidential election is over, I am seeing more new real estate investors who are thinking about getting into cashflowing real estate properties in San Antonio.

Many of these potential investors have good jobs and good incomes, and have so far saved and invested their money mostly in the stock market. But they are nervous about investing in real estate.

I think investing in the stock market is ok in a limited fashion. I was heavily invested in the market back in 2000, and I lost a large chunk of it in the crash after 9/11/01.

That experience taught me something important: Having one’s life savings in the stock market is risky, even if you are well diversified. Since I lost so much money in the stock market at that time, I decided to invest in something solid – specifically, San Antonio under market value properties.

I strongly believe that investing in certain under market value San Antonio fixer uppers is an excellent long term wealth building strategy. My real estate strategy is usually to buy a San Antonio under market value property for $35,000 to $75,000 cash, do $5000 or $10,000 in repairs, and either rent or owner finance it.

Here is a great case study example; this property belongs to a California investor of mine:

The house above in on West Poplar Ave. in 78207 in San Antonio. It is a newly completed San Antonio investment property that was bought the the California investor for $44,000 in October 2015.

We conducted $10,000 of rehab on the property and put it on the market in December 2015. Total cost to investor was $54,000. It was resold in late January 2016 with the following terms:

$83,000 sales price
$5000 down
$627.61 per month ($800 per month PITI)
9% interest
30 year note

Note that this is a seller finance property, not a rental property.

That property is generating $627 per month in cash flow on a $54,000 investment with no other expenses.

But what if you don’t want to do all cash deals? That’s ok too. You can use your available cash to put a down payment on a property and to do repairs, and then either rent it out or owner finance it (this is called a wrap around mortgage).

In such a case, you should be able to net at least $250 to $350 per month in positive cash flow if you hold a mortgage on the San Antonio investment property.

Here is a current property that I have carefully scouted out that can generate 12-14% ROI after the repairs are done:

Address: 8013 FM 1518, Somerset, TX 78069
Year Built: 1955
Description: Tremendous cash flow investment opportunity in South San Antonio suburb, excellent school district and low crime rating, 3 beds 2 bath San Antonio investment property under market value, 2150 sqft, land: .16 acres, built: 1955, tax value: 84.9K, yearly taxes: $2,400.00, estimated yearly insurance: $1,000.00, Estimated Repairs:10K, ARV:79-89K
Cash Price on San Antonio Fixer Upper: $49,000
Exit Strategy: Owner Finance with 10K in repairs: then resell with: 5K-10K down, $895 monthly PI/TI, 30 year amortization, 10 % interest, Sales Price 89K.

I recommend that a new San Antonio real estate investor work with an expert investor and real estate agent who has a large portfolio of properties. He or she can help you to get a good deal such as the above.