SOLD – 401 Carroll St. San Antonio, TX 78225

 

  • Address: 401 Carroll St. San Antonio, TX 78225
  • Year Built: 1955
  • Description: San Antonio buy and hold investors and real estate investors  – Location Location! Very popular neighborhood south of downtown. 401 Carroll St. San Antonio, TX 78225, 3 beds 2 bath, 1000 sqft, built: 1945, Lot Size: .14 acres, Subdivision: Palm Heights, Estimated repairs: 15K, interior/exterior paint, update kitchen/bath, sheetrock, trash removal interior/exterior. ARV: 89.9K,
  • Cash Price on San Antonio Fixer Upper:  $45,000 CASH ONLY
  • Exit Strategy: Sell with Owner Finance terms, 15K in repairs: 5k-10K down, $895.00 monthly P/I, 30 year amortization, 10% interest, Price: 89.9K.  NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. 
  • Sold and Rental Comps: Sold Comps 401 Carroll St
  • For more information, please contact us. 

More Pictures of San Antonio Under Market Value Property:

Why San Antonio Is A Great Market for Owner Financing

As a buy and hold investor in San Antonio, you have the option of either renting out your investment property, or owner financing it.

I have done both buy and hold strategies in the last 16 years. While I still hold some rental properties, I really like to owner finance properties in San Antonio. I think that the San Antonio market is a good place to owner finance for several reasons:

#1 Huge Blue Collar Hispanic Market

As a hispanic myself, I like to serve the hispanic blue collar market in San Antonio. These are hard working people and are very oriented towards family.

Most of my buyers are electricians, roofers, plumbers, carpenters, painters, cooks, oil workers etc. Many of them have  two or three jobs and good income.

They often have large, extended families, and they have the ability to repair the houses that I sell them. To them, hard working blue collar people, I am offering them an affordable opportunity to own their own home.

If the home needs to have a new roof or new flooring, they usually can do the project themselves inexpensively. This saves them money, and it saves me money as an investor because I do not need to spend as much to rehab the house.

#2 Many Hispanics Are Cash Only People

There are hundreds of thousands of hispanics here who lack credit. They may have good income of $4000 to $8000 per month, but they either do not believe in credit, or they have bad credit. However, they have the income and the job stability to afford their own home.

With credit markets as they are, it can be tough for a buyer with no credit or bad credit to get a loan from a bank. It got even harder after the mortgage crash of 2008 and 2009. Sometimes these blue collar buyers have no conventional financing options; even FHA won’t work with them.

Why should a hardworking family that makes $5000 per month have to rent forever? It doesn’t seem fair at all. That’s where I come in.

#3 Owner Financing Is a Win Win for Everyone

Let’s say I have an under market value San Antonio property that I bought for $50,000. To resell it with owner financing, I may need to only spend $5000 to put in flooring, do minor foundation work, clean up the yard, and get rid of junk in the home.

Then, I can sell it with owner financing at $5000 down, $799 per month, 30 year note, 10% interest usually, no prepayment penalty. It is my job to make sure the end buyer has the job and income to support the payments; this is a requirement under Dodd Frank.

Everyone wins in this scenario: Me as the San Antonio real estate investor is making 12% or more per year with no repair costs.

The end buyer gets to own their own home and stop paying rent to a landlord.

The neighorhood gets another home owner who will probably fix up the house, which encourages others to buy and to fix up their home.

The city gets more tax dollars from owner occupied homes, and the local buisness community gets more money from people buying things to fix their homes.

That’s why I love San Antonio owner finance deals. Interested? This is a good San Antonio fixer upper:

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  • Address: 1360 Essex St San Antonio, Texas 78210
  • Year Built: 1956
  • Description: San Antonio buy and hold investors – Another cash flow opportunity, 1360 Essex St San Antonio, Texas 78210, 3 beds 1 bath, 1002 square feet, lot size: .19 acres, subdivision: Denver Heights, 6K repairs, clean/lawn maintenance/interior paint, After Repair Value: 79K.
  • Cash Price on San Antonio Fixer Upper:  $45,000 CASH ONLY
  • Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $795.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $79,000.00, see attached comps.  NOTE: We recommend owner financing this investment property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed. 
  • Sold and Rental Comps: sold-comps-1360-essex-st rental-comps-1360-essex-st

How to Save on Rehab Costs and Long Term Property Repairs

Most San Antonio real estate investors buy under market value San Antonio properties, rehab them and then rent them out.

I have several rental properties in my San Antonio investment portfolio, but I have found in the last year or two that construction costs are eating too much into my bottom line.

As the San Antonio real estate market is heating up, construction costs have gone up on some of my fixer uppers by as much as 50%! Rather than spending $10,000 to repair and rent a property, I was finding that I was spending $20,000 or more, and my net return was under 10% per year.

Because of higher construction costs, I am advocating more owner financing my San Antonio properties. Here’s how it works in a nutshell:

  • I buy the under market value San Antonio fixer upper for $50,000.
  • I do approximately $5000 in repairs on the property, which may include painting, cleaning, minor plumbing and electrical. Basically, I am doing enough repairs on the property so that I can sell it with owner financing to a blue collar worker and his family. They will be able to complete most of the remaining repairs.
  • By only doing $5000 or so in repairs on the property, I am able to save at least $10,000 in most cases in construction and rehab costs. This often will push my ROI to 14-15%.
  • Typical terms for the end buyer are 10% interest, $5000 down, no prepayment penalty, 30 year note.

The owner financing exit strategy has the added benefit of not having any ongoing repair costs, which is great for peace of mind and my bottom line.

In summary, the foundation of my buy and hold San Antonio property portfolio is properties owned in cash and owner financed to qualified buyers. It is the primary strategy I recommend to new investors who want to build passive cash flow.

Here’s a good property that will return 14-15% per year with $5000 only in rehab:

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  • Address: 224 Avondale Ave., San Antonio, TX 78223
  • Year Built: 1957
  • Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it.  Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
  • Cash Price on San Antonio Fixer Upper:  $49,900 CASH
  • Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed. 

OFF MARKET – 224 Avondale Ave., San Antonio, TX 78223

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  • Address: 224 Avondale Ave., San Antonio, TX 78223
  • Year Built: 1957
  • Description: San Antonio buy and hold investors – Happy New Year! Excellent cash flow opportunity with central AC/Heat. This is a big plus as you don’t need to spend to add it.  Has car port and tool shed. The neighborhood is in high demand, booming south San Antonio Market, 2 beds, 1 bath, 866 sqft, lot size: .16 acres, estimated repairs: 5K, clean/lawn maintenance/exterior paint. Max After Repair Value: 85K.
  • Cash Price on San Antonio Fixer Upper:  $49,900 CASH
  • Exit Strategy: Owner Finance with 5k in repairs: 5K down payment, $850.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 85K. NOTE: We recommend owner financing this property rather than renting; you will be able to save your cash outlays on the repairs by owner financing it rather than renting. Renting out this San Antonio investment property is possible, but at least another $10,000 of repairs will be needed. 
  • Sold and Rental Comps: sold-comps-224-avondale rental-comps-224-avondale
  • For more information, please contact us. 

More Images of This San Antonio Investment Property:

back-yard bath bed2 bedroom breakfast-area kitchen living shower sink storage

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

 

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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.

Case Study – Making Big Profit on a Foreclosure

Most of my San Antonio real estate investing portfolio consists of under market value distressed properties that I own in cash. I then owner finance them properties to buyers who lack the credit to buy a home with a bank loan.

This type of San Antonio buy and hold may sound risky to many investors, I can tell you that if you do your homework on your potential buyer – verify their employment, income, get at least $5000 down, do a personal interview – you can often get very good buyers who pay you for many years.

I own several San Antonio investment properties that I owner financed for $5000, $699 to $999 per month. Some of the investment properties are 2/1s, and many are 3/1s.

Whenever possible, I only do a few thousand dollars of clean up on the property, and then I sell it with owner financing to the buyer. Most of my San Antonio owner finance buyers are blue collar workers and they can fix the homes themselves.

I do not have too many problems with foreclosures on my San Antonio fixer uppers, but when I do have a foreclosure, it isn’t a major obstacle to my profits.

This year, one of the San Antonio homes in my portfolio was 126 E. Dullnig 78223. The homeowner had paid me mortgage payments for three years, but I had to foreclose on the owners when they were 60 days late.

I took the house back and spent a thousand dollars to clean it up and get the junk out. It wasn’t in bad shape at all, and I didn’t need to do much.

Then, I was able to sell it for $49,000 cash to an investor in San Antonio, and made myself a $15,000 profit. Below is more about that home:

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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: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, central HVAC, flooring, 2 room conversions, foundation/roof repairs.
Max ARV: $109-$115k

Cash Price: $48,000

Exit Strategies:

  • Rent with 30K in repairs: $1150.00
  • Owner Finance San Antonio wholesale property with 20K repairs: 5k down, $995.00 monthly P/I, 30 year amortization, 10% interest, Price: 99K. Or, owner finance with quick $5k clean up, resell for $79,900.

Not every house that I get back works out that well, but I still do fine. Usually, I just clean up the San Antonio foreclosure and resell it with $5000 down again to another buyer. I have gotten some homes back three times and just keep reselling it for the same $5000 down.

Buy in San Antonio TX Now Before Prices Double!

Since the market crash in 2007 and 2008, San Antonio real estate prices have changed a lot. We were fortunate during the crash somewhat because our prices in San Antonio did not dip nearly as much as other places.

One of the long term benefits of investing in San Antonio real estate for cash flow is that the prices are quite steady overall. This is due to the general strength of the Texas economy, low tax rates, lack of red tape and a general pro business mind set.

When the market takes a dive, you will lose value on your home like anywhere, but the prices on homes in San Antonio in 2007 and 2008 only dropped in the area of 10%.

These days, however, the San Antonio real estate market is booming and prices on San Antonio investment properties could be rising again. Many local experts think that the real estate market in San Antonio is being driven by an increase in jobs and low mortgage rates. The number of people moving to San Antonio is still very strong, and this is driving up the real estate market.

Also, oil prices have dropped in 2016, and gas is under $2 per gallon and should stay there for the forseeable future. Any time oil starts to get near $50 to $60 per barral, more Texas rigs start to frack for oil again, which also helps the local job market.

All of this to say, these days you can still buy San Antonio investment properties of mine for cash flow for under $50,000, but this may not last. With the incoming Trump administration, we also could see cuts in taxes and regulations, which could send the San Antonio real estate market even higher. So now is the time to invest in San Antonio real estate.

With the below property for $49,000, you will be able to generate 13-14% ROI.

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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.

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.

 

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

Why I Love Buy and Hold Real Estate Investing in San Antonio TX

I see five big advantages with buying and holding San Antonio investment property.

I Make Regular Income

Most investments offer either a regular return or appreciation. San Antonio real estate investments offer both! A really good buy and hold investment property, such as the one on Wagner St. listed below for an under market value price of $49,000, offers strong positive cash flow that offsets my expenses and any debt. It also provides me a nice monthly income.

If you read much about me on this website, I financially retired at 28 with more than $20,000 in monthly cash flow. Almost all of that was and is from San Antonio buy and hold investment properties. I do a flip now and then, but I much prefer steady $700 per month cash flow from lots of San Antonio fixer uppers.

Depreciation

Fixing and flipping in San Antonio is well and good, although it is harder to do in this appreciating market. I can tell because flippers call me wanting properties for .50 on the dollar! Yeah right, not in THIS market!

The great thing about buy and hold property is that the IRS lets you write off depreciation on the property over 27.5 years. This is ‘negative’ income but it’s just negative on paper, which helps my tax situation.

Equity Increase

If you have a mortgage on your San Antonio investment property, the cash flow lets you pay the mortgage without spending your own cash. And, each month, part of your principle is paid down. About 20% of each loan payment increases your equity in the property. You can then borrow some of that capital if you like to buy more investment properties.

Appreciation

Buy and hold investment properties can appreciate in value depending upon the state of the market. Most of my under market value fixer uppers in San Antonio appreciate at 3-4% per year. During the last crash, most of my properties did drop in value, but I was still able to have positive cash flow from them. I was even able to increase rents on some of them.

I am mostly a cash flow investor anyway; appreciation isn’t a big deal to me.

Leverage

If you put $20k into stocks and it increase 10% in value, you make $2000. Not bad. But if you put 20k into San Antonio investment properties, you can buy a $100k fixer upper with an 80% loan. If it goes up 5%, you made $5000 with only $20,000 invested!

Even if stocks have a higher return, it doesn’t matter because real estate returns are based on much more than the principle you invested.

If you are interested in San Antonio buy and hold investing, here is a great 15% or so ROI deal to get rolling.

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  • San Antonio Wholesale Property Address: 1515 Wagner Ave. San Antonio, TX 78211.
  • Year Built: 1949
  • Description:  Location Location! Cash Flow! Under market value, 3 beds 1 bath, 816 sqft, built: Lot Size: .14 acres, Yearly taxes: $600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, flooring, roof repairs.
  • Estimated Repairs: 15k
  • Cash Price: $49,000
  • Exit Strategy: Rent San Antonio investment property with 15K in repairs: $850-$900 per month — or Owner Finance with 15K repairs: 5k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K. 15% ROI is possible.