For Sale – 415 Mclaughlin Ave. San Antonio, TX 78211

Location Location, prime time area going under major revitalization, 415 Mclaughlin Ave. San Antonio, TX 78211, 2 beds 1 bath, 1008 sqft, lot size: .16 acres, school district: South SA ISD, central heat and air condition, washer and dryer connections, estimated repairs to get rent ready: 1.1K, clean, lawn maintenance, minor plumbing/electrical Price: 69.9K firm, Strong Comps: 119Kplus, rents: $900

rental comps 415 Mclaughlin Ave 

sold comps 415 Mclaughlin

San Antonio Housing Market Still Booming in September 2017

Home sales continue to climb in San Antonio and are staying on track for another strong, record-breaking year even though there are fewer homes available on the market.

In August, there were nearly 3,000 homes sold in San Antonio, for a 2.3% increase from 2016. The total number of homes sold for 2017 are 20,867, which is 4.3% above last year at this time. Experts believe that the market is going to break the previous record when almost 30,000 homes were sold in a year.

The median home price in San Antonio is up 3.1% in August to $218,400. This is the fourth highest median price ever in the San Antonio market. Local home prices are shooting higher as there is a shortage of construction workers and more housing demand caused by the growing population in San Antonio.

It is true that housing prices are going up in San Antonio. Still, I am finding plenty of under market value, San Antonio investment properties available for my portfolio. Blue collar workers flocking to San Antonio for jobs need houses to buy with owner financing or to rent, so my business is still doing well.

San Antonio generally is still a good place to invest in under market value, high ROI investment properties, even if prices are higher than 2010. The strong, growing population and low unemployment rate indicate that this is a growing, robust economy with little signs of slowing down.

I am seeing more accredited and non-accredited investors with solo 401ks and self directed IRAs buying investment properties in San Antonio for their portfolios.  Below is a great under market value property that will see major appreciation in the next five years.

————-

Potential more than 40K in profit on this investment. 1614 Alametos, San Antonio, Texas 78201. Excellent location, just north of downtown with a short distance to the river walk and the new San Pedro creek river walk extension (multi-billion dollar inner city revitalization project).

Properties in this location are expected to appreciate by more than 50% in value over the next two to three years. 1614 Alametos has a large back yard with shady trees. Currently the property is set-up as 2 bedrooms and 1 bathroom with a large patio in the back of the house. To get the maximum value out of this property and location, another bedroom and bathroom should be added. Estimated repairs: $65K with purchase price: $69K. Max After Repair Value: $199K.

Note: 1622 Alametos just down the street was sold to an investor in 2015 for $65,000. With $15,000 of rehab, the property was sold for $99,000 with owner financing for a 13% ROI. Home was sold within one week.

Price: $69,000

Exit Strategy: Buy, Rehab and Hold this San Antonio investment property.

How an Investor Can Make 13% ROI in Their 401 or IRA Retirement Portfolio

Many people today are worried about saving enough money for retirement. If you are going to rely on the stock market to ensure that you can live comfortably in 10, 20 or 30 years, I understand why you may be nervous. While the historical returns of the stock market may be in the 8% range, there is no doubt that some years, the return is much less. If you are planning to retire in a few years and the market dives, you may find yourself not retiring at all.

I know someone who planned to retire in 2007 and live comfortably. After the market crashed, he had to go back to work for another five years.

The good news is that you can make a reliable 10% or even 15% ROI per year if you purchase under market value real estate investments. I have made a fortune with San Antonio investment properties over the years.

A popular way to make money for retirement today is to invest in under market value real estate in San Antonio in a solo 401k or self directed IRA. These funds can grow tax deferred over time, and you can often make an excellent rate of return.

Even after you technically retire, you still can invest in under market value real estate and enjoy cash flow. It may not be tax deferred any more, but you can still enjoy positive cash flow. Meanwhile, your friends and relatives are living off their retirement savings accounts based upon the stock market, which frequently dwindle over time.

Below is a great example of what you can do with an under market value investment property with a solo 401k or self directed IRA.

new front
$65,000 cash price, $15,000 rehab, resold for $99,900 owner finance, $1041 per month, 7 DOM, 12.9% ROI.

Still, we have CA investors coming into our fine city and buying property investment homes and making 12-13% ROI annually, with no property maintenance.

This San Antonio investment property was purchased by a CA cash buyer in July 2015 at 1622 Alametos St. This house is in 78201, and is north of downtown. This region is seeing rapid growth and appreciation.

The bottom line on this property was with only $10,000 of rehab, it was sold with owner financing at $99,900 in only a week after it was rehabbed. Here are the numbers:

  • $1041 per month
  • 30 year note
  • 10% interest rate
  • $5000 down payment
  • $99,900 final price
  • $216/mo. taxes/insurance

The total return on this San Antonio investment property was 13% per year.  That money is being returned to the investor’s solo 401k account each month, and he will use that money to eventually invest in more San Antonio investment properties.

This is what you can do with investing in real estate properties from within a solo 401k or self-directed IRA. Whether you are an accredited investor or a non accredited investor, this can be a great financial move.

Now Is a Great Time for Cash Flow AND Appreciation in San Antonio

When I first started investing in San Antonio TX in under market value properties, I did not typically see a lot of appreciation on my properties. Most of the San Antonio fixer uppers I invested in saw appreciation in the range of 2-3% or maybe 5% per year maximum.

But that was more than 15 years ago since I started to invest here, having financially retired nearly 10 years ago. Today, I am seeing more possibilities to both enjoy appreciation AND cash flow on under market value fixer uppers in San Antonio.

Today, there is a general affordable housing shortage in San Antonio. It is harder for lower income renters and home buyers to find places to live. This is creating real opportunities for real estate investors in Texas. Also, we are seeing major investment into San Antonio in the downtown area. This is coming from the state and city government, and also out of state and even out of country investors.

For example, the Pearl Brewery off of 281 near downtown was a real hellhole in 2008. It was abandoned, run down and not somewhere you would either want to live or invest. However, an outside investor poured nearly a billion dollars into the Pearl Brewery complex. Today, it is the second hottest tourist attraction in San Antonio, after the downtown Riverwalk. It is full of nice hotels, chic restaurants, and bars, and is a general great hangout spot for San Antonians and tourists alike. Very expensive townhomes of $500,000 and up also are being built around the Pearl complex.

There is plenty of other development occurring in San Antonio that is leading to good appreciation and cash flow potential for affordable home investors. For example, the area north of downtown, not far from the Riverwalk, is also near the new San Pedro creek extension. The city is pouring billions of dollars into this area. Properties located in this region are believed to be poised for appreciation of 50% or more in the next three years.

I have a property at 1614 Alametos 78201 that will return the investor at least $900 per month in rent, and with a potential ARV of $199,000. That is some serious appreciation for a home that is worth $69,000 today.

We also had a property on 1622 Alametos that we sold in 2015 for $65,000. The investor put $15,000 into it, and sold it with owner financing for $99,000. Today, that home is easily worth $115,000.

So, I recommend buying certain homes in San Antonio today in areas where the city is investing money. You should see substantial appreciation and good cash flow.

Forbes High on Texas for Real Estate Investing and Lifestyle

If you are looking for a good place to move with affordable, growing real estate prices, good job opportunities and high ROI real estate investment opportunities, you should strongly consider Texas, and San Antonio.

Don’t take our word for it: Forbes magazine has been touting the many economic benefits of living and investing in real estate in Texas in 2017.

According to a Forbes analysis of realtor.com data in 2017, San Antonio is the #4 city in America for where people are moving to. The median home price, while it has gone up since 2012, is still a reasonable $275,000. Unemployment is very low in San Antonio at just 3.7%.

Austin is ranked #5 for where people are moving, and the unemployment rate is just 3.1%. The median home price is up to $399,000, however.

When it comes to investing in high ROI real estate investments, you will have a hard time finding a better place than Texas, Forbes also reports. Many Texas cities, including San Antonio, receive high marks both for affordability and growth. Those are two of the most important factors when you are thinking about investing in real estate.

Forbes notes that Texas has several spots on its top 20 cities to invest in. It explains that the recession and housing crisis did not hit this state as hard as the rest of the US. This means that the state has bounced back faster and has been adding more jobs for longer and faster than most of the US. Job opportunities and affordable real estate have led more people to move to Texas, as of 2015, than any state other than Florida.

The magazine states that San Antonio is one of the top 20 places to invest for 2017 because the population of the city grew by an impressive 6.5% from 2012-2015. In 2016, home prices gained 7% in value and jobs growth was 1.7%. Homes are still under valued by 7%.

If you are looking for a good under market value investment opportunity in San Antonio, consider this one:

  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 75K
  • Cash Price on San Antonio Fixer Upper:  $45,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $750.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 75K, see attached sold/rental comparables.

San Antonio Housing Market Was Red Hot in 2016

The housing market in San Antonio in 2016 was hot as home prices went to the highest levels ever. The local paper reported that 29,508 homes were sold, which was more than an eight percent increase from 2015.

The median price for San Antonio real estate increased six percent to $204,300. This was the very first time that the median sales price had been over $200,000 for an entire year, including the real estate boom years of a decade ago.

Also, the inventory of homes that are available dropped in December 2016 to only three months. this indicates there are more buyers than sellers in San Antonio.

So what does this mean for San Antonio real estate investors? Well in my experience, it means that real estate prices are going up, and buying homes for many people in San Antonio is becoming more difficult. For people who earn a good income of course, the homes in San Antonio are very reasonable.

But for people who earn $3000 per month and don’t have credit, buying a home with conventional financing is very difficult. That is the reason I focus my San Antonio investment strategy on owner financing.

Here is a good example of an under market value property that I am selling right now:

  • Finance Your Investment Properties
  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 69K
  • Cash Price on San Antonio Fixer Upper:  $42,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $695.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69K, see attached sold/rental comparables.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton

This property is only $42k cash, and with $5k in repairs, you can sell this with owner financing (you’re the bank), to a family with job and income but no credit. The major advantages of this type of deal are that you do not have repair expenses ongoing. Also, you can limit your initial out of pocket costs. If you were to rent this house out, you would have to do $20,000 in repairs, not $5000.

Owner financed homes is the backbone of my real estate investment portfolio in San Antonio. Each home earns at least 10% ROI with no expenses.  This type of buy and hold investing helps to support the working families of San Antonio as well, so it is a win win.

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

 

Front

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.

Start Here To Invest in San Antonio Real Estate Today!

Want to Finance Your San Antonio Investment Properties?

If you found our San Antonio real estate investing website, you probably are thinking about investing in real estate. Investing in under market value San Antonio properties can help you reach financial independence, and I can help.

m_P_1457494520381_thumb_IMG_5087_1024
A recent rehab that I did.

If you are thinking about investing in under market value properties, here is how the investing process goes:

Get Cash to Invest

  • The real estate investor, as of 2016, needs approximately $40,000 to $65,000 to invest in a first San Antonio real estate property. If you have more cash available than that, I recommend buying several properties at once so that you can build your portfolio faster.
  • The money can come from cash savings of course, or, a good second option is a line of credit on your personal residence. If you can get a 3-5% interest rate on the money, you can invest it into cash flowing real estate that earns at least 10% interest.
  • If you do not have this much cash to invest, you need to find a private source of capital that will loan you money at a reasonable rate. Or, we can help you to find investment property loans. 
  • If you borrowed the cash out of your home to invest, we will get your first property done and producing cash flow for year. Then you can pull cash out of your investment property and pay off your loan on your personal home.
  • Then you can pull the cash out of your home again and we can start the process again with another property.
  • Note – I prefer to invest in cash, but on some of our properties, you can do 20% down and get a mortgage. In that case, I look for at least $200 to $300 per month in cash flow after all expenses. I can recommend lenders for investment property financing, if you need it. 

Investing the Money

  • I mostly recommend buying and holding San Antonio  investment properties for cash flow. If you want to flip, I’m not doing many of those deals right now given the tight margins.
  • When you have capital to invest, I recommend purchasing an under market value property in the $40,000 to $65,000 wholesale range. I have properties on this site that I have scouted out personally and have judged to be in areas that will produce good cash flow for the investor.
  • You buy the property in cash, and title goes to you or your business entity.

Rehab Begins

  • I present you with a bid that lists all of the repairs that need to be completed. Right now, I usually recommend $5-10k in repairs and then owner financing the property instead of renting.
  • 50% of the repair bill is paid up front, and 50% upon completion.
  • I give you regular updates, with photos, as work is done.

Property Is Rented or Sold 

  • Once the rehab is completed, my team will work to get the home rented or sold. Homes are listed in MLS.
  • You can either rent the home out and my team will manage it for you. Or you can owner finance the home, usually with these terms – $5000 down, 10% interest, $595-$999 per month depending on property.
  • Expect an ROI after expenses of 10% or more. I am seeing 15-16% ROI on some houses as of Jan. 2017. However, have reasonable expectations on each property. I have done very well over 15 years by making 10%-12% on my San Antonio investment properties.

And that is how investing on your first property or properties in San Antonio goes! Here is a good one to get you started:

  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 69K
  • Cash Price on San Antonio Fixer Upper:  $42,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $695.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69K, see attached sold/rental comparables.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton
  • For more information, please contact us. 

 

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.

thumb_IMG_5926_1024

  • 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.