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OFF MARKET – 8013 FM 1518, Somerset, TX 78069

 

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  • 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.
  • Sold and Rental Comps: Rental Comps 8013 FM 1518 Sold Comps 8013 FM 1518
  • For more information, please contact us. 

More Images:

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San Antonio Is An Overvalued Real Estate Market – So What?

Years after the bottoming out of the housing market in Texas, which was in 2012, Texas generally and San Antonio specifically  is one of the to be one of the most overvalued markets in the US, according to Forbes Magazine. But I don’t think this is a bad thing.

Since prices hit rock bottom in San Antonio in January 2012, the San Antonio economy has grown strongly, with gross metro product hitting 9% in San Antonio since the end of 2014. While Austin’s gross metro product is higher at 18%, so are real estate prices. Prices in Austin rose from the end of 2012 until the end of 2015 by 41%, with a median home price of $278,000.

In San Antonio, prices rose just 21% in the same period for a median price of $190,400 as of mid 2016.

Some people would say that an overvalued housing market is not a good thing, but I think it is worth keeping a few things in mind:

  • San Antonio homes are still very affordable, with a median price currently in the $200,000 range. Got that? You can still buy a house here for $200,000 or less!
  • San Antonio under market value fixer uppers are still available for $50,000 or less, and I have seen prices drop recently, actually.
  • Even with higher prices in the last two years, I have many San Antonio fixer uppers that can return 12% or higher returns when all costs are factored in.
  • An overvalued real estate market indicates strong demand and limited supply, which indicates good economic growth. For a real estate investor, strong ecnoomic growth  is a good thing, as you have plenty of renters and buyers to occupy your real estate investment properties.

I can understand where an overvalued real estate market such as San Francisco could be a big problem, as it will price everyone but the super rich out of the market.

But here in San Antonio, prices for my San Antonio real estate investments are still very low, and we have a very low unemployment rate. The strong growth of our area and Texas generally means that many companies are moving in here, such as Maruchan (of instant noodle fame), Chevron, Rackspace and Geekdom among others.

Want to see a good example of a cheap San Antonio fixer? Here you are –

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  • Address: 127 Hopkins St. San Antonio, TX 78221
  • Year Built: 1972
  • Description:  Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
  • Cash Price on San Antonio Fixer Upper:  $39,900
  • Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.
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What Will Donald Trump Mean for San Antonio Real Estate Investing in 2017?

As a real estate investor in San Antonio, I am well aware over the years of how much uncertainty a presidential election can have on the financial markets generally, and real estate specifically.

Now that Donald Trump has been elected president of the United States, many investors in San Antonio are wondering if his election will be good, bad, or somewhere in the middle for San Antonio investment properties.

Well, I can only speak for myself when it comes to the national economy and the real estate investing market, but I think that much of the ‘economic recovery’ in the last eight years has left behind a lot of the investing class and many middle class Americans.

Many of us believe that the Federal Reserve’s monetary policies have led to many in the middle class feeling inflation, little wage growth and while unemployment is low, many Americans are underworked and are making due with part time jobs to make ends meet.

I think that with Trump in charge, who obviously is a highly experienced real estate investor himself, we are likely to see more economic expansion with infrastructure investments. He also may use debt to encourage growth and will try to lower taxes for the middle class and higher earners, who provide much of the financing for job growth.

It also seems possible that he will reduce regulations in Dodd Frank and make it easier for small investors to borrow money.

Hopefully, a Trump administration will encourage stronger economic growth and greater confidence in the real estate investing markets than we have seen since 2009.

I do know that we have seen a slight drop in San Antonio real estate investment prices in the last six months, prior to Trump being elected.

I do think that with the lower real estate property prices, this is a good time to move into buy and hold real estate investing in San Antonio. Prices are lower, interest rates are still low, and the unemployment rate in San Antonio is very low. There is a strong rental and buyer market here for sure.

Here is a great under market value fixer upper that will be a great addition to your real estate investing portfolio:

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  • 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.

 

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A Different Take on Buying and Holding Investment Properties Successfully

A lot of investors in San Antonio do a lot of flipping properties. Flipping homes has worked well for me in some cases in the last 15 years, but flipping San Antonio houses in the under $75,000 range can be challenging.

I deal mostly in affordable San Antonio properties, and with prices going up and construction costs going up, I have found that turning a profit of more than $3000 on a six month flip has been difficult.

Over the long term, I have been a big believe in buying and holding real estate – getting rich slowly rather than quickly. Taking a slower approach to getting wealthy in real estate might not be what you see on TV, but I think buying and holding San Antonio investment property is the key to long term wealth building, more than flips.

What Is Your Exit Strategy? 

Most of my under market value properties were bought under market value in San Antonio for $25,000 to $75,000. I usually buy and hold them for more than 10 years. Some of my properties I have held for 15 years!

Generally, I buy my houses in cash, do a few thousand in repairs, and then owner finance the homes instead of renting them out. With owner financing, I get a steady $500-$800 per month in cash flow and I have to do no repairs on the home once I have sold it.

Many buy and hold investors only consider renting out the property, and while I do have some rentals, I will usually prefer to owner finance them.

I also recommend San Antonio owner financing properties for the investor who still has a full time job. You don’t have to concern yourself with fixing leaking roofs or water heaters. The new property owner takes care of it and just pays you each month.

While I buy my homes in cash, you can get a mortgage on an investment property that is in decent condition, and then owner finance it just as you would if you bought it cash. This is called a wrap around mortgage. This is an option for people who do not have the cash to buy a bunch of houses for all cash. As long as you are able to clear $300 or so on the property, this can make sense.

The home I have for sale below would work great as an owner financed property to make you 11% or so per month with no repairs.

Only $5000 in repairs to get it sold.

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  • Address: 127 Hopkins St. San Antonio, TX 78221
  • Year Built: 1972
  • Description:  Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
  • Cash Price on San Antonio Fixer Upper:  $39,900
  • Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.

 

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How Pulling Cash Out of Investment Properties Can Increase Your Portfolio

If you are like many San Antoni real estate investors, you only have so much cash to invest in your buy and hold properties.

When many of our investors started out, they only had 10k or 20k or their own money.  When you have limited investment capital like that, you have a few options before you:

  • Buy under market value properties and flip them for a profit
  • Buy and hold rental properties in cash and save the cash flow to buy more
  • Buy and hold rental properties with mortgages and buy more with cash flow

Both of those options for investing in properties can work well, and I have done both. Naturally, both of those strategies have downsides:

  • Flipping properties can be challenging to do profitably in some markets. For example, in 2016, flipping affordable homes in San Antonio for significant profit is more difficult as prices have risen the last two years, and construction costs have increased with the stronger economy. Finding under-market value properties that allow a flip profit have been hard as well. That’s why some flippers i know have been doing few deals lately.
  • I believe in buying and holding properties as rentals or with owner financing for cash flow. But it obviously takes a long time to save up cash flow to buy more properties. I prefer to buy my homes with all cash and it will take a long time to save up the capital for more, but you also can buy them with 3.5% or 5% down if you can qualify for the mortgages. That way you can buy more homes faster.

Another way to build up your portfolio of under market value San Antonio fixer upper properties is this:

  • Buy your first San Antonio investment property with all cash.
  • Rent it out after you fix it, and wait a year.
  • With property values rising, you should be able to do a cash out refinance of that property and get enough cash to at least do a down payment on another property.

Note that you will need to have considerable equity in the rental property; many lenders want 80% or lower loan to value to do a refinance.

Or, consider pulling equity out of your personal residence and buying rental properties, or owner financing them. If you are getting 3-4% interest and you put that money into a property that makes you 12% or 14% per year, you really cannot go wrong. You will need to work with an expert investor to show you how to do it, and you also need to buy the right property, but this is very doable in San Antonio right now, as prices on affordable homes are often under $50,000.

Here is a nice San Antonio investment property I have right now that will return 12-14% per year:

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  • Address: 127 Hopkins St. San Antonio, TX 78221
  • Year Built: 1972
  • Description:  Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
  • Cash Price on San Antonio Fixer Upper:  $39,900
  • Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.
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How I Own High ROI Investment Properties with Just $2000 in Repairs

One of the challenges of dealing with rental investment properties in San Antonio and other places is that they cost money to rehab and maintain.

When many San Antonio real estate investors purchase under market value properties, the normal scenario is something like the following:

  • Buy an under market value San Antonio fixer upper for $50,000.
  • Stick $25,000 into it to get it ready to rent.
  • Rent it out for $900 per month.

That is a perfectly acceptable way to generate cash flow with buy and hold real estate investments.

But what if you can buy the house cheaper than that, put only a few thousand into it, and get it occupied for about the same monthly payment?

That is what I do on many of my San Antonio investment properties. Take a look at this very nice, incredibly inexpensive $35,000 San Antonio fixer upper deal:

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Address: 1707 Gorman, San Antonio, TX 78202

Description: Stunning large lot with positive cash flow, under market value, booming San Antonio Market, very popular location east of downtown, 2 beds, 1 bath, 654 sqft, lot size: .22 acres, estimated repairs: 2K, minor electric, clean/lawn maintenance. After Repair Value: 61K,

Price: $35,000.00 cash firm.

Exit Strategy: Owner Finance San Antonio investment property with 2k in repairs: 3-5K down, $600 monthly PI/TI, 30 year amortization, 10% interest, Price: 61K

On this investment property, I got it under contract for just $39,000 (prices in my areas have been dropping lately). And rather than rent out the property – which would require $25,000 or more of rehab, I just do $2000 to clean it up.

Then, I find an owner finance buyer interested in buying the property from me on terms of 30 years, 10% interest, $5000 down. That way, I leave most of the rehab to the end buyer, and I can enjoy a very high rate of return without doing any repairs.

Owner financing a house successfully requires me to do my homework. I need to make sure of the following:

  • The buyer has enough income to afford the payment and to live with the other normal life expenses.
  • They have a stable job for at least the last two years.
  • They have a $5000 down payment.

Most of these buyers have poor credit, so it is up to me to find good buyers who can pay me on time. If they don’t, we foreclose and get them out in 60 days, and get another buyer in there.

That’s the cornerstone of my San Antonio investment property portfolio – buy and hold with owner financing with limited repairs of $2000 to $5000.  What do you think?

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San Antonio Investment Properties Under $40,000 Again!

For the last three years, many San Antonio investment properties have been rising in price. For more than a year, it was difficult to find San Antonio fixer uppers that could be purchased for less than $50,000.

And when I was able to find that under market value fixer upper, it needed more than $25,000 of repairs. That can reduce the final ROI on a San Antonio property to a range of 10-11%. Now, I own dozens of San Antonio buy and hold properties that earn 10%, and I am very happy with that. But some investors like to see 12-15% returns on their money, and I can respect that.

Recently, as of October 2016, some areas of San Antonio continue to appreciate in value. On the north side in Stone Oak, for example, San Antonio home prices are still rising. But many of the fixer upper San Antonio properties I buy are finally falling a bit in value.

Recently I have been able to get a few fixer uppers under contract for under $40,000. Just as good, I have found some San Antonio buy and hold properties that only need $2000 or $4000 in repairs, if you do an owner finance exit strategy. This means that the ‘owner’ of the property who buys it from you on terms will fix up the property.

So you as the buy and hold investor can enjoy a return around ~14% ROI and never have to repair it. Now that is quite a nice San Antonio real estate deal! Here’s one of those properties:

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Address: 1604 Montezuma St, San Antonio, TX 78207

Description: Investment in great shape new paint in/out, new floor, new water heater, updated bath/kitchen; Excellent cash flow opportunity, booming San Antonio investment properties, very popular location west of downtown, 2 beds, 1 bath, 576 sqft, large lot: .07 acres, estimated repairs: 2K, minor electric, clean/lawn maintenance. After Repair Value: 59.9K,

Price: $39,900 cash firm.

Exit Strategy San Antonio Investment Property: Owner Finance with 2k in repairs: 3-5K down, $595 monthly PI/TI, 30 year amortization, 10% interest, Price: 59.9K

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SOLD – 127 Hopkins St. San Antonio, TX 78221

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  • Address: 127 Hopkins St. San Antonio, TX 78221
  • Year Built: 1972
  • Description:  Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
  • Cash Price on San Antonio Fixer Upper:  $39,900
  • Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.
  • Sold and Rental Comps: Rental Comps 127 Hopkins Sold Comps 127 Hopkins
  • Contact us for more information or to make offer.

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SOLD – 1257 Saltillo St., San Antonio, TX 78207

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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 form $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.

Comps: Rental Comps 1257 Saltillo St Sold Comps 1257 Saltillo St

For More Information: Contact us

More Pics: 

Back Yard Bath Bed 1 Bed2 Kitchen Living_Dining Storage Unit Utility Room

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SOLD – 1604 Montezuma St, San Antonio, TX 78207

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Address: 1604 Montezuma St, San Antonio, TX 78207

Description: Investment in great shape new paint in/out, new floor, new water heater, updated bath/kitchen; Excellent cash flow opportunity, booming San Antonio investment properties, very popular location west of downtown, 2 beds, 1 bath, 576 sqft, large lot: .07 acres, estimated repairs: 2K, minor electric, clean/lawn maintenance. After Repair Value: 59.9K,

Price: $39,900 cash firm.

Exit Strategy San Antonio Investment Property: Owner Finance with 2k in repairs: 3-5K down, $595 monthly PI/TI, 30 year amortization, 10% interest, Price: 59.9K

Comps: Sold Comps 1604 Montezuma

For More Information: Contact us

More Pics: 

Back Bath Bed 1 Bed 2 Living_Kitchen Meter Utility Room Water heater