SOLD – 1614 Alametos, San Antonio, TX 78201

Investors, flip this house! $55,000 cash price, $50,000 rehab, $30,000 to $40,000 profit!

  • Address: 1614 Alametos, San Antonio, TX 78201
  • Description: San Antonio flip investors and real estate investors  – Flip this house, river walk extension being built in LA Heights neighborhood, exceptional back yard, perfect location north of downtown, 3 beds, 1 bath, 1,400 sqft, lot size: .14 acres,
  • Cash Price on San Antonio Fixer Upper:  $55,000 CASH under market value 30%
  • Exit Strategy: Flip – estimated repairs: 50K, clean/lawn maintenance/interior paint/exterior paint, plumbing/electrical up to code, flooring, sheetrock/texture, roof, foundation. Max After Repair Value: 149K
  • Sold and Rental Comps: Sold Comps 1614 Alametos
  • For more information, please contact us. 

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:

Front

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

How Long Should I Hold My Buy and Hold Investment Property?

Many people are interested in long term buy and hold real estate investing, but some people wonder if they should sell their properties at some point. I know many buy and hold investors in San Antonio, and once in a while, one of them will call me and tell me they want to sell. I’ve picked up some nice under market value deals on some of those calls!

In any case, how long you should hold onto your real estate investment rental properties depends on many things:

  • What is happening in the market
  • Costs to maintain the properties – vacancies, taxes, insurance
  • Amount of rent you receive
  • Interest rate on loans you have, if any
  • Type of property – single family, multi family, condo

There is not any assurance that your properties will appreciate in value, but if your buy and hold properties are in decent areas, you can assume that the value will at least hold in most markets, and may increase by at least 1% per year. In San Antonio, my fixer upper investment properties typically appreciate in value by 3% per year. Their REAL value, of course, is that they generate $500-$900 per month in positive cash flow ; )

Many commercial investment property firms often look at investment properties with a five year outlook. Whether they want to develop the properties or hold them for cash flow, they want to maximize ROI for their investors quickly.

Of course, as a private, single investor, you do not have to worry about all that; you can focus on what is most important for your own portfolio of rental properties. Let’s assume in 5 years that your San Antonio investment properties are worth 10% more than today and you decide to hold onto them. If in five years you gain zero appreciation, those five years you waited would mean a worse return on investment. However, your properties were still paying you each month some amount of positive cash flow, assuming you are running your properties responsibly.

Before you actually purchase Texas investment properties, you should determine what your investing goal is and stick with it, regardless of what happens in the market:

  • Paying for major expenses: Some investors end up selling their properties to pay for college tuition. If you need cash and the only other option is taking out student loans, you may want to sell the properties regardless of what is going on in the market.
  • Second income source: You do not necessarily ever need to sell your properties – I’m certainly not ever selling mine. Investment properties give me residual income and have for 15 years. Also, my properties can be depreciated for 27.5 years and that cuts my tax burden.
  • Maximize return ASAP: This means you are flipping investment properties. Flipping properties is more difficult in an appreciating market, as you need to find under market value properties and this can be tough. Flipping works best in a depreciating market.

 

My Best Tips for Successful Buy and Hold Investing in San Antonio

Investing in under market real estate in San Antonio has treated me well over the years. I firmly believe that investing in under market value fixer upper San Antonio properties for the long term is the best way to enjoy long term cash flow.

If you are on the fence and are about to dive into buy and hold investing, I have some simple tips to share, as a successful San Antonio property wholesaler:

  • Work with a real estate agent and investor

Most real estate agents just represent people who are buying or selling their personal residence at retail prices. The majority of agents do not invest in real estate themselves, so they are often unable to help you find a good under market value fixer upper that will produce good positive cash flow.

I only became an agent in 2010 after about 8 years of very successful fixer upper buy and hold investing in San Antonio. I know a good under market value deal when I see it.

  • Cash flow!

You need to get a San Antonio wholesale property under market value enough so that when you do the repairs and collect rent from the tenant, you will have enough to cover all of your expenses. These usually include mortgage, taxes, insurance, repairs and vacancies.

Right now, the San Antonio real estate market is pretty hot, and good fixer upper deals for affordable homes are harder to find. This is why working with a highly experienced real estate agent and investor is so important: She can help you find a good under market value deal that can produce cash flow. Also, if you work with an experienced investor agent, she will probably have a good rehab crew that can do the fix up work at a fair price.

Here is a nice wholesale property deal in San Antonio I just found that will produce $1150 per month in rental cash flow:

Front

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: 30K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, central HVAC, flooring, 2 room conversations, foundation/roof repairs.
Max ARV: $109-$115k

Cash Price: $55,000

If you do that San Antonio distressed property all cash, you should have about $700 left for positive cash flow – not bad! – after expenses.

  • Due diligence

I have done about 900 houses in my career, so I personally inspect each San Antonio wholesale deal to see if I will be able to generate enough cash flow after repairs. This is where having an expert agent investor on your side with an expert rehab crew will pay you back big!

A very common error for new fixer upper investors is to overdo the rehab or not be aware of all the things that have to be fixed.

  • Only invest if the cash flow is there

I never buy an under market value property based upon what I think the value of the house will be in a few years. That is real estate speculation and that is a great way to end up in the poor house. If after I run the numbers – property cost, rehab cost, all expenses – I generate positive cash flow of a few hundred dollars, I do the deal.

  • Don’t forget repairs and vacancies

I like to account for at least $50 per month for repairs on my fixer upper deals in San Antonio. Also, plan on a 5% loss for vacancies. However, I often do San Antonio Section 8 rentals, and I find that this type of rental income is quite solid and safe; I have Section 8 tenants who have been with me for 5 years or more.

Above all, after you find a good potential under market value property that will produce positive cash flow, do the deal. Don’t sit around thinking about it too long or you may never take action. Many people think about investing in San Antonio wholesale property, but the majority never do a deal because of fear.

If you do your due diligence as I outline about, there should be no reason to not move forward on that property!

 

 

 

San Antonio TX Economy Still Strong, Even With Oil and Gas Slowdown

Personal income growth since 2011 in Texas ranks #2 in the US, with only North Dakota ahead. Some San Antonio real estate investors think that crashing oil and natural gas prices would have slowed down the Texas economy, but the Lone Star State continues to do well. And San Antonio buy and hold properties continue to sell and rise in value.

Note: I don’t personally worry much about what the economy does in San Antonio anyway. In the 2007-9 crash, I bought and sold $2 million in real estate and still had my San Antonio buy and hold houses rented out with no problem. San Antonio affordable homes are always in demand. 

Economic experts in Texas this month stated that several areas of the Texas and San Antonio economies continue to keep job growth going and wages rising. For example, health care is very strong, and San Antonio has a very strong military presence with several Air Force and Army bases.

Even with low oil prices, Texas still created 1.7 million jobs from 2010-15, which is the best in the US. In the same time frame, the entire US economy lost 400,000 jobs.

The oil and gas slow down has had some impact in Houston, but San Antonio is continuing to see low unemployment and wage growth. San Antonio is seeing economic growth in the 3-4% range.

Even though oil prices are low for the time being, research shows that oil production has only dropped marginally in Texas. There are 2.5 million barrels per day produced in this state, down from 2.8 million two years ago. The small production decrease has come even though there are only 200 or so active rigs in the state, which is down from 900 two years ago.

This means good news for San Antonio buy and hold investors, and San Antonio flip investors. I continue to buy and sell real estate investments, although the prices are up 20% from two years ago.

I recommend doing Section 8 rental property for a good San Antonio buy and hold investment, as the rental market is very strong:

Front

  • Address: 804 S San Eduardo Ave, San  Antonio, TX
  • Year Built: 1949
  • Description: Fixer upper, under market value 4 beds 1 bath, 816 sqft, built: 1949, lot size: .1 acres, yearly taxes: $1,200.00, estimated yearly insurance: $750,
  • Estimated Repairs: 30K, roof, central hvac, windows, plumbing, electrical, kitchen/bath update, interior/exterior finish.
  • Cash Price: $48,000
  • Exit Strategies: Rent San Antonio investment property with 30K in repairs: $1,095.00 with section 8, no need to chase the monthly payment, San Antonio Housing Authority pays direct deposit to your account.

SOLD – 4907 Waycross Ln., San Antonio, Texas 78220

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Address: 4907 Waycross Ln., San Antonio, Texas 78220-1840
Year Built: 1971
Description: Under market value fixer upper 4 beds 2 bath, 1078 sqft,  lot size: .13 acres, yearly taxes: $1,200.00, estimated insurance: $750.00, estimated repairs: 30K; central hvac, flooring, update kitchen/bath, roof, interior/exterior finish.
Price: $49,000 Cash
ARV: 109-115K
Exit Strategy:

  • Owner Finance with 30K repairs: 5k down, $1,095.00 monthly P/I, 30 year amortization, 10% interest, Price: 109k
  • Rent with 30K in repairs: $1,095.00 with section 8, no need to chase the monthly payment, San Antonio Housing Authority pays direct deposit to your account.

Contact us for questions or to make offer.

Comps: rental comps 4907 way cross ln sold comps 4907 way cross ln
More Photos:
Back Bath Bed 1 bed 2 Bed 3 Bed 4 Kitchen Living_Dining

 

 

SOLD – 804 S San Eduardo Ave, San Antonio TX

Front

  • Address: 804 S San Eduardo Ave, San  Antonio, TX
  • Year Built: 1949
  • Description: Fixer upper, under market value 4 beds 1 bath, 816 sqft, built: 1949, lot size: .1 acres, yearly taxes: $1,200.00, estimated yearly insurance: $750,
  • Estimated Repairs: 30K, roof, central hvac, windows, plumbing, electrical, kitchen/bath update, interior/exterior finish.
  • Cash Price: $48,000
  • Exit Strategies: Rent San Antonio investment property with 30K in repairs: $1,095.00 with section 8, no need to chase the monthly payment, San Antonio Housing Authority pays direct deposit to your account.
  • Owner Finance with 30K repairs: 5k down, $995.00-$1,095.00 monthly P/I, 30 year amortization, 10% interest, Price: 99K-109k
  • Contact us for more information or to make offer.
  • Property Analysis, Sold and Rental Comps: Rental Comps 804 S San Eduardo Ave Sold Comps 804 S San Eduardo Ave

More Images of this San Antonio fixer upper:

Back Bath Bed 1 bed 2 bed 3 bed 4 Kitchen Living room

SOLD – 804 Virginia Blvd, San Antonio, TX 78203

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    • Address: 804 Virginia Blvd, San Antonio, TX 78203
    • Year Built: 1900
    • Description: Act fast – hot market and low under market value price! Serious cash flow on this San Antonio fixer upper! San Antonio wholesale property has 3 beds 1 bath, 900 sqft, built: 1900, Lot Size: .07 acres, Yearly taxes: $1,000.00, Estimated yearly insurance $600.00,
    • Estimated Repairs: includes interior paint, plumbing up to code, /bath updates,  Max ARV: 99K.
    • Cash Price: $45,000
    • Alternate Exit Strategy: Rent with 25K in repairs: $995.00 with section 8, no need to chase the monthly payment, San Antonio Housing Authority pays direct deposit to your account.
    • Contact us for more information or to make offer.
    • Property Analysis, Sold and Rental Comps: Prop Anal 804 Virginia Blvd, Rental Comps 804 Virginia Blvd, Sold Comps 804 Virginia Blvd

More Pictures of this San Antonio fixer upper:

Back Bath Bed 1 bed 2 Kitchen Living Master bed Shower

Investing in Real Estate and Building Your Rental Portfolio

As you are thinking about investing in real estate and building your rental portfolio, you can no doubt find many wholesale property companies in San Antonio to sell you properties.

I am a San Antonio property wholesaler like others in some ways, but with me, you will find a key difference:

I built myself a large portfolio of rental investment properties (and owner financed investment properties) practically from scratch in about 5 years, from 2001 until 2006. If the person selling you properties has few to no properties, how much do they really know about what they sell?

When I first got started in San Antonio real estate investing, I did not have much capital, only about $25,000. In my first year in real estate, I did 50 houses – San Antonio flip properties.

I did that by finding $2 million in private money from a retired doctor and investor in San Antonio. He loaned me in the money in small parcels and I bought under market value $30,000 properties, rehabbed them, and flipped them for a $8000 profit, which we split.

I was able to make $100,000 in my first year in real estate investing, and I re-invested most of the profits into buy and hold rental properties.

Now I am in the position where I have a very large portfolio of buy and hold properties, and I really do not need anymore properties for myself. I like to help other small investors develop their own portfolios.

I run across many small real estate investors in California that want to build a rental property portfolio but are priced out of their current market. I specialize in helping these investors maximize their available cash so that they can buy enough rental properties so they can quit their jobs within a few years.

Here is a typical real estate investing scenario I see:

  • California investor with a good $200,000 per year job and $100,000 cash or equity cannot buy anything in CA worth having.
  • He has steady high tech employment and good credit.
  • I recommend that you buy an under market value San Antonio investment property for cash at $70,000.
  • We do $35,000 in rehab on the fixer upper property. I make it really nice – with central air, tile, lighting, granite, really make it shine.
  • We then rent it out section 8 for the investor for approximately $1295 per month – ARV is about $139,000.
  • After the house is rented, the investor from California can cash out refinance up to 80% and do another section 8 rental property.
  • If he has a line of credit on his residence, he pays himself back with the line of credit from the first investment property, and then borrows another $100,000 and does another one.

This is one of the ways that I built a portfolio of buy and hold properties after I had profits from my San Antonio flips in my first few years in real estate.

So, if you are thinking about buying San Antonio wholesale property, I recommend that you find a 10 year expert in the business who not only can sell you a property, but has experience in building a cashflowing portfolio for himself.

Why Investors Who Obsess About Interest Rates and ROI Lose Money

Obviously it is important in San Antonio real estate investing to make a good return on your investment dollar. In my 15 years of investing in San Antonio investment property, I have averaged about $8000 profit on flips on under market value properties, and approximately 12% ROI on San Antonio buy and hold deals.

However, if you as an out of state property investor obsess too much on ROI, how much you will make on that flip, or the interest rate that you are paying on your borrowed capital, it can talk you out of doing profitable deals, and that is a big mistake.

In the last month, I have seen investors talk themselves out of doing profitable deals – I am talking about clearing $10,000 on a flip in particular. This under market value San Antonio property is a good example:

66

    • Address: 2229 W Hermosa Dr.  San Antonio, TX 78201
    • Year Built: 1948
    • Description: Under market value property sale in hot north of downtown neighborhood, 2 beds 1 bath, 769 sqft, built: 1948, lot size: .14 acres yearly taxes: $1,200.00, estimated yearly insurance: $800.00, estimated repairs on this distressed sale.
    • Rehab Option#1: 35K, includes new HVAC, converting to 3 BR, updated kitchen, flooring, paint in/out, exterior skirt, roof, room addition, appliances, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $139,000.00 on this fixer upper with owner financing, comps are for 3/1.
    • Rehab Option #2: 15k  with Owner Finance ONLY – AC, flooring paint in and out $109,000 ARV.
    • Cash Price: $69,900 firm.

On this San Antonio flip deal, the investor will make in the area of $10,000 on a flip, or maybe $6000 or $7000 if they have to borrow hard money. Now some people think that is too little to bother with. Oh my goodness! They are so  wrong. When I first started in San Antonio real estate investing, I did 50 houses in my first year.

I borrowed over $1 million from a local doctor, and we split the profits 50/50 when each project was completed. Now I only ended up making $3000 or $5000 per flip when I sold them. But I didn’t worry about such a ‘small’ amount of profit, because I made – get this – $100,000 in my first year in San Antonio wholesale property investing! And I re-invested 80% of that profit.

Let me be clear: Investors who laugh off making $5000 or $10,000 on a San Antonio flip are being foolish. True, if you only do 1 flip a year, you are not going to be able to build capital very quickly. So, you need to do at least 4 per year, or ideally, 10 or more. Then you take that $5000 or $10,000 per deal and invest it again into San Antonio flips or San  Antonio buy and holds.

I have dealt with well meaning but short sighted investors who actually were going to scuttle $10,000 profit flip deals because they were going to possibly have to borrow 14% rate hard money. Of course it is smart to borrow the cheapest capital that you can – ideally private money or a line of credit on a piece of property you own.

Failing that, hard money is often the only option. While it is true that you will pay high interest and fees – possibly up to $4000 per deal – why on earth would you nix doing deals if you still stand to profit? Which is better, making $6000 or making zero? I know what I’ll go with!

At the end of the day in San Antonio real estate investing, focus on your total profit, not on the interest rate and fees you are paying. If you are making $5000 on a flip, I’d be happy with it and do 10 more this year.

Update: This week we had a buyer walk away from a deal that would have made her $8000 or so because she refuses to use hard money. So, rather than make $8000, she makes nothing.