How To Financially Retire on $20,000 ‘Junk Houses’ With Minimal Repairs

Many of our top investors in San Antonio have been buying and selling under market value San Antonio properties since 2001. The majority of my portfolio are properties that are $20,000 to $40,000. When I first started out, I was able to pick up many $20,000 homes in San Antonio and surrounding areas.

For the first few years, I would repair these San Antonio fixer uppers and then rent them out. That would net me in the area of 10% per year and it was fine.

But at one point, some of our investors owned more than 100 rental properties, and all of the repairs were stressful and really started to eat into my bottom line. It was in 2007 or so when one of my mentors advised me to stop fixing up these San Antonio under market value properties and renting them out.

Now, I will usually just buy $20,000 San Antonio investment properties, and do a brief clean up for a few thousand dollars, if that, and then owner finance it to a qualified buyer.

I have learned how to qualify buyers carefully; most of them are blue collar hispanic workers who have a good job and earn $3000 a month or more. I get a $5000 down payment from them, and charge 10% interest. They usually do not have good credit, but as long as they have a steady job, most of my buyers end up paying me on time for years.

I like to deal with cheap, under market value San Antonio houses for $20,000 or so and leave most of the repair to the owner finance buyer. This may not be the most obvious source of regular cash flow; most investors think they have to rent out properties and be a landlord.

I definitely prefer to just do buy and hold real estate with these fixer uppers with owner financing. Here’s a great one for just $18,000 and it needs no repairs:


    • Address: 308 Strong Ave, Ballinger TX 76821
    • Year Built: 1900
    • Description:  Texas fixer upper cash flow king – 3 beds 1 bath, 1300 sqft, ¼ acre lot, yearly taxes: $500, yearly insurance: $500,
    • Estimated Repairs: NONE – Resell AS IS.
    • Cash Price: $18,000
    • Exit Strategy: Owner Finance this buy and hold under market value property with ZERO repairs: 2k down, $395.00 monthly P/I, 30 year amortization, 10% interest, Price: 39k. Strong demand for affordable houses under $500 per month here.