FOR SALE – 626 Barberry St, San Antonio, Texas

Location Location, area going under major revitalization including parks, roads, and sidewalks, short drive to river walk, perfect investment property, newer home built in 2009, 626 Barberry St, 3 beds 2 bath, 904 sqft, large lot: .15 acres, estimated rehab 27.5K: foundation, flooring, paint, electrical/plumbing up to code.
Max ARV: $99,000
Asking Price: $54,000
Exit strategy: Owner finance, $5,000 down payment, $99,000 sales price, $950 monthly PI/TI, 30 year amortization, 10% interest or rent $950 monthly.
See attached sold/rental comps.

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.

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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.

San Antonio Investors Buying Up Properties At Rapid Pace

Out of state real estate investors recently bought up several multifamily complexes that are worth more than $150 million. This was one small part of a large surge in real estate investing in San Antonio.

Sherman Residential was the company that bought the 385 unit Pecos Flats apartment complex on the west side in early May.  Sherman decided to come back to the San Antonio market after it left during the down turn in 2007.

Sherman noted that it always like San Antonio for high ROI investment opportunities, but it believes San Antonio is an even better investment today. It stated that San Antonio now has a more diverse employment base and strong population and job growth.

Investment brokers in San Antonio agree; some say that its strong population and employment growth in a range of industries are attracting many more real estate investors.

Many real estate investors are choosing large markets with strong employment growth and relatively low cost of living because they are thought to be more steady and less subject to a boom/bust cycle.

Brokers say that San Antonio is viewed in many quarters as recession proof, and with plenty of economic diversity, this area is a good bet in both bull and bear real estate markets.

San Antonio’s real estate market has experienced strong growth for the last five years, but there are signs that it may be cooling a bit. This can be a good opportunity for under market value real estate investors to pick up deals.

In April 2017, 2427 homes were sold in the San Antonio metro area. This was a decline of 2.2% from a year ago. That was only the third month since early 2011 that sales went down. As of May 2017, 8592 homes were sold in the city, with 8408 sold at this time last year.

The median home price went up by 8.4% in 2017 to $215,000.

Overall, the San Antonio market is a great bet for under market value investors seeking high ROI investment opportunities in 2017. A strong but not explosive real estate market will lead to plenty of good opportunities for investors who know where to look,

How an Owner Financed Deal Works In San Antonio

The majority of my real estate investment portfolio in San Antonio is in owner financed properties. Rather than rent the properties out, I do an owner financed note to a qualified buyer.

Many real estate investors are not familiar with how an owner financed deal works, so I thought I would lay it out here for you:

First, I find an under market value investment property in San Antonio in a revitalizing and growing area near downtown. A good example is this dual property in an area that is seeing major reinvestment by the city:

Address: 106 and 110 Dewitt, San Antonio Texas, 78210

Description: Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years. Both homes need to be converted into 3 beds 1 bath: estimated repairs for both projects: 80K-40K each, purchase price for both investments: 80K, Max After Repair Value: 119K each or 230K for both, Package deal.

Price: $80,000 cash

After I do a $3k-10k clean up and repair of the property, I find a good, qualified buyer with steady work, income and at least $5000 down payment. I execute a promissary note with the buyer of the San Antonio property. I typically charge 9% or 10% interest, a 30 year repayment schedule (fully amoratizing), no prepayment penalty, and consequences for default.

The buyer then sends me his monthly mortgage payments either by check or electronic deposit (I have a special Chase account set up for this purpose). I then earn a very good ROI in the range of 10-15% per year, and the property is maintained by the end buyer.

I tend to hold my notes for the long term, and do not usually sell them.

Seller financed deals sometimes are for the short term while the buyer gets their credit cleaned up and refinances. In San Antonio, few of my blue collar end buyers end up refinancing. I get long term cash flow with no repair headaches. I also can save thousands in rehab costs because I generally only do a light clean up of the property. The same property if rented would need far more in repairs.

Why don’t more investors consider owner financing their properties? I think many investors simply are not familiar with the process. Many new investors think investment properties must always be rented. Not so.

Another reason I think is that real estate investors may want to pull  cash out of their investment properties to do more deals later. You can’t do that with an owner financed property. But you can sell the note on the property if you choose to do so and get cash for more deals.

Last, I think that people don’t realize that you can buy properties with a mortgage and then do an owner financed deal to the end buyer. This is known as a wrap around mortgage, and can be a really great way to make good cash flow, conserve cash for more deals, and eliminate investor worry about repairing properties.

 

 

FOR SALE – 106 and 110 Dewitt, San Antonio Texas, 78210

High ROI Investment Opportunity! High Real Estate Appreciation! Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years!

Address: 106 and 110 Dewitt, San Antonio Texas, 78210

Description: Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years. Both homes need to be converted into 3 beds 1 bath: estimated repairs for both projects: 80K-40K each, purchase price for both investments: 80K, Max After Repair Value: 119K each or 230K for both, Package deal.

Price: $80,000 cash

Exit Strategy: I recommend buy/remodel/rent then resale in 5 years

Comps: 110 & 106 Dewitt rental comps 110 & 106 Dewitt sold comps

Contact us for more information

More Pictures: 

 

 

New York Times Highlights San Antonio’s Development Prowess

As most real estate investors in San Antonio know, billions of dollars of development have poured into San Antonio in the last 20 years. And the city is really starting to get on the national and international map, both as a tourist destination and also as a place to find high ROI investment opportunities in Texas and elsewhere.

The New York Times just wrote a new piece about taking 36 hours to visit San Antonio, and it highlighted much of the revitalization of the Alamo City in the last few years. For example, did you know that the River Walk, which opened in 1941, was expanded in 2013 from the three mile tourist section to a full 15 miles?

The downtown area of the River Walk is where all the tourists flock, and it’s great; there are many wonderful bars and restaurants along the narrow sidewalks. But the River Walk is now much bigger, and you can walk two miles down to the wonderful Pearl Brewery area. There you can enjoy a less crowded and less commercialized walk as you pass art installations, wetlands, and even an underpass that features a very cool soundtrack of singing birds.

For San Antonio real estate investors, this development has led to property appreciation, better investment opportunties, and more are slated for the future.

On the east side of town, the local developer Efraim Varga plans to invest $150 million into a mixed use development called Essex Modern City. It is going to include 80,000 feet of office space, 65,000 of retail space, 250 apartments, 150 condos and 80 townhouses.

Developers of this space are hoping that tech companies will move in to lease some of the creative office space. The site of the development is very close to the Alamodome, Hemisfair and the San Antonio River, so the development is expected to do quite well.

Meanwhile, I continue to buy  San Antonio fixer uppers, which are doing very well with all of the revitalization this city is seeing. I am seeing stronger demand for my end buyers with my owner finance program. Most of my neighborhoods are within a few miles of downtown and much of the revitalization that is taking place:

  • Address: 3118 Owasso St. San Antonio, TX 78211
  • Description: San Antonio investors, flip this house for a nice profit,  4 beds 2 bath, 1560 sqft, new homes on the same block, estimated repairs:60-80K, Price: 49K, Max ARV: 159K-189K, estimated profit: 40-80K, 3 month major project.
  • Cash Price on San Antonio Fixer Upper:  $49,000 CASH ONLY
  • Exit Strategy: Flip with 60-80k in repairs, profit 40-80k.