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:

SOLD – 1301 S Hamilton St., San Antonio, TX 78207

 

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  • Address: 1301 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description:  Under market value property for San Antonio real estate investors, excellent cash flow opportunity, neighborhood in high demand for terms, booming San Antonio Market west of Downtown, 3 beds, 1 bath, 1391 sqft, lot size: .09 acres, estimated repairs: 22K, clean/lawn maintenance/exterior paint/sheetrock/roof/plumbing/electrical. Max After Repair Value: 95K,
  • Cash Price: $42,000 CASH ONLY.
  • Exit Strategy: Owner Finance with 22k in repairs: 5K-10K down payment, $950.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 95K, see attached sold comps..
  • Notes: ROI should be 14-15% per year. 
  • Contact us for more information or to make offer.
  • Sold and Rental Comps: sold-comps-1301-s-hamilton

More images of San Antonio real estate investment:

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Investor Opportunity – San Antonio Home Sales Are Projected to Surge in 2017

Experts say that San Antonio real estate sales will continue to increase this year. They also note that prices will continue to climb in the consumer home sale market as many local developers are not able to keep up with demand.

Some of the factors that are causing the increase in San Antonio real estate demand are local growth in jobs, very low mortgage rates at 4%, and increasing home values. It is likely that mortgage loans will continue to edge up but will continue to be low by historical standards.

Approximately 27,000 homes were sold in San Antonio in 2016, which is an 8.5% climb from 2015, and a huge 46.4% increase from 2012.

Local home prices in the San Antonio market increased in 2016 to $204,000, which was a 27% increase from a median home price of only $160,000 in 2012.

Owner Finance, Buy and Hold Investment Opportunities!

Given that there is such a strong demand for homes, as a San Antonio real estate investor, I am finding that there are plenty of investing opportunities for under market value properties.

This city has many people who want to buy a San Antonio home but do not have the credit or the down payment to get a conventional loan.

That’s why a major part of my San Antonio real estate investment business is selling homes with owner financing. The end buy has to have $5000 down, have a steady job, and show that they have the regular monthly income to pay the mortgage.

I prefer to owner finance my investment properties than rent them out. I usually only need to spend $5000 or so to fix up the property. Then I can owner finance the home to a family who can finish the repairs themselves.

Remember, there is great demand for homes in San Antonio, but thousands of families lack the credit to buy their home with conventional financing. This is a great opportunity for smart and savvy San Antonio investors! Here is a new under market value San Antonio deal that will make 14% ROI or so:

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  • Address: 549 N San Bernardo Ave, San Antonio, Texas 78228
  • Year Built: 1958
  • Description:  Under market value San Antonio investment property and another cash flow opportunity for San Antonio real estate investors, large beautiful lot, 4 beds 1 bath, 1000 square feet, lot size: .30 acres, subdivision: Memorial Heights, 6K repairs, lawn maintenance, interior paint, clean trash in/out, After Repair Value: 73K,
  • Cash Price: $46,900 CASH ONLY.
  • Exit Strategy: Owner Finance with 6k in repairs: 5K down payment, $750.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: $73,000.00, See attached sold/rental comps.
  • Notes: This San Antonio owner finance,  under market value property has a very large lot, which will appeal to many families.  It features FOUR bedrooms, rare in this price range. Also, we advise owner financing this house rather than renting, with just $6k in repairs – boosts your ROI.

 

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

Four Simple Ways to Fund Your First Real Estate Investment

Getting going in real estate investing in San Antonio doesn’t require you to have hundreds of thousands in savings. When I first started investing in San Antonio in under market value homes, I didn’t have much of my own cash. I was able to find sources of funding so that I could buy 50 houses in my first year.

Here are some of the best, simple ways to fund your first few deals with limited cash:

#1 Buy San Antonio Property with FHA Loan

If you are buying your first San Antonio investment property, consider buying one with an FHA loan and putting down 3.5%. A classic way to get started is to buy a two or four unit multifamily property and live in one of the apartments while renting out the others.

I never did this myself, but there is a certain logic in living rent free in your own property while enjoying rental income from the other units.

#2 Hard Money Loans

You can use hard money for a few months to flip a property. Or, consider using the hard money loan so that you can rehab an under market value property, and then get a conventional loan on the property and rent it out.

Hard money loans carry high interests rates of 12-15% and don’t make sense over the long term. But it works fine for a flip, or for holding for a few months until you can get a conventional loan on the property.

#3 Mortgages from Non-Bank Entities

Some people have had trouble qualifying for mortgages in recennt years, and companies such as SoFi and Lending Home online are offering more mortgages. Many loans can be closed in as little as two weeks, and some of them will fund 100% of the purchase.

#4 Asset-Based Mortgage

There are companies today that will loan you money for a mortgage on a San Antonio investment property just based upon the income that the property will produce. One of them is B2R Finance.

Because the loans are based upon the rental income that the property will make, it is a good choice if you are just starting out in San Antonio real estate investing.

 

The Most Important Thing I Tell New San Antonio Investors Is…

I talk to many new San Antonio real estate investors every week, and I am talking to more than ever this past month. San Antonio TX is now on the radar for a lot of out of state property investors.

There are many new San Antonio wholesale property investors coming into the market every month. The reason is that San Antonio is booming.

Real estate prices are up but still affordable. The population is growing, unemployment is low, and wages continue to rise. Houses are selling quickly in the hot parts of town as well.

And while the prices are higher than two years ago, it still is very possible to make positive cash flow on under market value San Antonio properties.

If there is anything I would tell the new San Antonio real estate investor it would be this:

Don’t be greedy, and have realistic expectations!

I often talk to investors from out of state who are used to investing in more expensive areas, and earning $25,000 on a flip. Or I’ll talk to a Midwestern investor who thinks he can make 20% on a buy and hold here.

I’ve been working as a real estate investor in San Antonio real estate since 2001, and I have made many millions of dollars by making $7000 on a flip and $12% per year on a $650 per month buy and hold.

I am very happy to make those types of returns. I basically do lots of these small San Antonio investment property deals each year. Each flip makes me $7000 or $10,000, or each buy and hold makes me 11% or 12% per year, and I am fine with that.

Too many investors focus on doing a few grand slam deals each year. What they should be doing in San Antonio real estate investing is making a solid return on dozens of deals each year!

If you want to make $25,000 or $50,000 on a flip, you need to move into big projects, ones that go for $200,000 or more. And that my friends gets a lot more complicated and expensive than my little $50,000 or $60,000 San Antonio wholesale property deals.

It’s also more risky. In 2008 when the market tanked, I got stuck with a bunch of $1 million San Antonio real estate investments that were no longer worth what I paid for them. That’s what can happen when you are trying to flip expensive homes at or near market value.

Buying little under market value San Antonio houses such as mine is a lot safer. You just have to be happy making $10,000 on a flip.

I currently have several good $10,000  San Antonio flips available, and these are excellent returns that you can make a lot of money on. You should not pass on a deal because you will not make $30,000 on a flip. I advise doing at least 4 per year and making 40-50k. Then use that cash to buy San Antonio buy and hold property.

Below is an excellent 10k San Antonio flip property you should consider:

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    • Address: 820 South San Manuel St., San Antonio TX
    • Year Built: 1950
    • Description: Under market value investment property, three bedroom, one bath that has 928 square feet. Beautiful home with TWO exterior storage units – this is a MAJOR selling point for the end buyer; most buyers are blue collar contractors, and they need their tools to be completely secure.
    • Max After Repair Value: $99,000.
    • Cash Price: $69,000.
    • Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $900 per month, $5000 down, 30 year note, 10% interest. This San Antonio investment property offers passive cash flow with no maintenance.
    • Alternative Exit Strategy: $15,000 in repairs and flip/resell retail – maximum ARV is $99,000. Profit $10,000.

 

15% ROI Case Study on $25,000 Fixer Upper San Antonio Property

The San Antonio real estate market is hot, but there are still excellent, affordable San Antonio real estate investments available for the smart San Antonio wholesale property investor.

I found the property 1918 Santiago 78207 in an estate sale, and it was sold to a California investor for $25,000:

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As you can see, this under market value property needed some work:

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However, it is located in a growing and revitalizing area just a few miles west of downtown. So, my out of state investment property investor bought it and put $25,000 of rehab into it:

  • Updated kitchen: Countertop, sink, fixtures, cabinets: $1200
  • HVAC: Installation of 3 ton A/C: $3800
  • Electric: Upgraded all exterior and interior fixtures, all plugs up to code: $2900
  • Interior finish: Sheet rock, paint, doors, trim, hardware, closets and cabinets: $4400
  • Bathroom: New toilet, vanity, mirror, tile/bath/shower walls: $1500
  • Flooring: Laminate flooring in living room and four bedrooms, tile in kitchen, bath, utility: $3650
  • Exterior finish: Paint, dry rotted wood replacement, re-stucco sides: $3300
  • 40 yard dumpster: $1200
  • Plumbing: Up to code: $2200
  • Microwave and vent: $850

The house sold in March 2016 for the following terms:

  • $74,700 final price
  • $750 per month including taxes and insurance
  • 10% interest
  • 30 year note
  • No pre-payment penalty
  • Total ROI: 15%

After rehab pictures:

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This San Antonio real estate investor is making 15% per year on a $50,000 investment.

 

How To Build Wealth Through San Antonio Real Estate Investments

If you are a potential out of state property investor and want to build wealth through San Antonio real estate investments, there are a few things that I think might give you some guidance and reassurance:

#1 San Antonio Is a Great Market for Under Market Value Real Estate Investing

This is a pretty unique market:

  • Real estate is still inexpensive, with San Antonio real estate investments in my areas going for $40,000 or $50,000 wholesale.
  • The economy is strong, with annual job growth in the 3-4% range.
  • The local market is not oil dependent, so San Antonio real estate investors do not have to worry about a boom/bust cycle.
  • The population is growing here year after year as is the number of jobs.

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All in all, San Antonio is really good for real estate investors. It is a stable, growing market, and I did very well here in the last downturn.

#2 There Are Still Many Excellent San Antonio Real Estate Investment Deals

Another unique thing about San Antonio for real estate investors is that it is an old city, with a large stock of older homes built in the 1920s to 1940s. I have been investing here for 15 years, and I still drive down streets in my area that I have never been down before.

If you are a new San Antonio real estate investor, you may have trouble finding deals in all the normal places new investors look. One advantage of working with me is that I am at the level where I hire wholesaling companies to work for me and to find potential deals for me. My job is pretty easy when I have people send me San Antonio wholesale property. I just have to inspect the best deals and make offers.

You could spend hours and hours on your own trying to find your own San Antonio wholesale deals, or you could just buy mine.

I also have other real estate investors in San Antonio and agents send me deals because they know who I am, and they also know I close with cash in 10 days.

#3 I Recommend Flipping Properties to Build Capital and Then Buy and Hold

Some people like to flip and some like to buy and hold. My personal portfolio is mostly San Antonio buy and hold properties with owner financing, and a few rentals.

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However, I do believe in this model for people who have limited capital:

  • Buy a $50,000 San Antonio wholesale property either cash or with hard money; do $25,000 or so in rehab, and flip it for a $10,000 to $12,000 profit. You will need to have $20,000 to $30,000 cash to get rolling in this plan.
  • Do 3-4 of those per year, or more if you can.
  • After two years, you could have $100,000 or more. Use that money to buy San Antonio real estate investments to buy and hold – either buy in cash or do 20% down conventional finance.

This is a great, basic blueprint to build wealth in San Antonio real estate investing.

#4 San Antonio Wholesale Property Deals Are Profitable But…

I see many San Antonio real estate investors never do more than a deal a year because they are trying to make too much money on a single deal.

I have made millions of dollars in my San Antonio wholesale property career by doing San Antonio property flips for $5000 or $7000. I never understand why so many real estate investors get greedy and want to make $20,000 or $30,000 on a flip. I do 50 San Antoniio property flips per year and make $7000 each. That’s $350,000! Works for me!

Or, I do San Antonio buy and hold deals for $600 per month. When I do 10 more of those per year, that’s another $70,000 of income. I have no problem with that.

You have to have realistic expectations when you are buying and selling San Antonio investment properties. The prices are low, but you only are going to make so much money on one $60,000 house. Don’t get greedy, and you can do very well.

I have had several out of state property investors walk away from this fantastic San Antonio flip or buy and hold deal. They want to make too much money. You can make $15,000 on this flip in 60 days. Or, 13% per year on a San Antonio buy and hold.

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    • Address: 1723 W Ashby Pl  San Antonio, TX 78201,
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $129,000.00
    • Cash Price: $65,900 firm.

How I Make Big Profits on San Antonio Buy and Hold Property

Many wholesale property investors in San Antonio and other areas are big into flipping properties for wealth building.

It is true that flipping houses in San Antonio can be profitable, and I sometimes do San Antonio property flips. However, the majority of my wealth building over time as a San Antonio real estate investor has been with San Antonio buy and hold property.

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This buy and hold property makes the investor in San Antonio 13% per year.

Below are simple steps to follow to buy a profitable buy and hold property as a San Antonio real estate investor:

#1 Locate the Right Buy and Hold Property at the Right Price

I always try to buy wholesale properties in San Antonio that produce 12-15% ROI per year, either through renting or owner finance. I also like to buy under market value San Antonio properties on the edges of neighborhoods that have houses worth $300,000 or more. The interesting thing about San Antonio wholesale property is that you can find $60,000 under market value fixer uppers just a few streets away from much more expensive properties. Those are the areas I target.

Here is a good example.

#2 Do the Numbers Make Sense?

Cash flow truly is king in buy and hold investment properties. You need to carefully determine how much you keep every month after you pay all expenses.

Many wholesale property investors buy and hold rental properties, and I have done some of that. However, I like to buy my under market value properties in cash, and then owner finance them.

The advantage to this type of buy and hold property investing is that the buyer of the house maintains it, and I just carry the mortgage on San Antonio real estate investment.

If you are doing buy and hold rental properties with a mortgage, really make sure that you are going to see positive cash flow, after all expenses, vacancies and repairs. If you are just barely paying the mortgage when you are fully rented and you have no major repair expenses, trouble awaits!

#3 Make Money at Closing

The biggest reason many buy and hold investors lose money is that they pay too much for the house. You MUST buy the house under market value to produce cash flow. You want to buy a San Antonio buy and hold property at least 20% under market value.

My investor paid 30% under market value for this house and now makes 16%.

#4 Manage Tenants Right

I buy and hold properties with owner financing, so I don’t have many tenants. But if you do rental properties, you have to very carefully screen tenants. You also can hire a property management company to handle your tenant screening and property repairs.

Of course, many buy and hold investors lose money here…..they pay too much for property management and they have no cash flow. Once again, this is where I recommend as a san antonio real estate investor buying properties in cash and owner financing them.