Should I Flip This Wholesale Property or Buy and Hold It?

I currently own in cash several dozen buy and hold San Antonio investment properties. While I do believe that long term buy and hold investing with owner financing or renting is the best way to build real estate cash flow, there also is a place for flipping properties.

When I first began in San Antonio wholesale property in 2001-2, I only had about $70,000 cash. That was enough to buy a couple of under market value San Antonio properties. After that I didn’t have any more capital.

So what I did next was place an ad in the local San Antonio newspaper and I found an under market value property investor who loaned me $2 million over the next two years. Our strategy was to fix and flip, and we split the profits on each deal 50/50.

But Should You Do a San Antonio Flip Property or Buy and Hold?

I believe there is room in San Antonio real estate investing to do both. Below is one of my wholesale properties that will work well as a flip or a 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: $69,900 firm.
    • Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
    • Alternate Exit Strategy: Flip with $35k in repairs for a ~$25,000 profit. Rehab completed in 45 days or less.

If you buy and hold this San Antonio turnkey property, you will make 13% ROI per year on a total cash outlay of $105,000. You also could buy this property with 20% conventional finance, and pay a mortgage of approximately $500-600 per month. Positive cash flow would be $950 to $1000 if you buy cash, and about $500 per month with the mortgage.  Getting financing with a property such as this in San Antonio is pretty easy if you have decent credit and assets.

OR, you could flip this house for a $20-25k profit. Your profit margin will depend upon if you use hard money to do the project. I prefer doing my flips in all cash as you will save $3-4k in fees and interest payments.

It can take longer to resell the flip retail than it can take to owner finance it or rent it with a buy and hold investment. So that is something to remember.

Of course, some houses work better as buy and hold investments and some are better as flips. It depends on the size of the home, location, number of bedrooms and more when you buy as a San Antonio real estate investor.

Overall, the strategy I tell most investors with limited capital is to do 3-4 flips, and then take the capital and do a buy and hold investment with owner financing. That way you are combining the best of both worlds with your out of state investment property investing.

 

Case Study 1622 Alametos 78201

This distressed property sale was completed in August 2015 by my San Antonio real estate investor. The market in San Antonio TX has changed greatly in the last year. The market is booming and prices are up across the board, even in fixer upper homes.

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 investor bought this San Antonio wholesale property cash, and we completed $10,000 in repairs in 3 weeks:

  • $65,000 cash price
  • $1500 carpet removal and adding wood vinyl in 3 bedrooms
  • $3500 HVAC
  • $750 for third bedroom conversion.
  • $750 for dumpster – clean out
  • $1500 two tone interior paint
  • $500 update five light fixtures
  • $1500 level front bedroom
  • $1500 closing costs

Total Investment: $76,500

Repairs were complete on July 31, 2015 and property was put on MLS. By Aug. 3, we had two full owner finance, price offers as follows:

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

Investor’s total monthly income after taxes/insurance is $825.

Final ROI: 12.9%

Interested in earning 12-13% ROI with no property management expenses in San Antonio real estate investing? Contact us now.

After Rehab Additional Pictures:

new door new front room new front new kitch 2 new lr 2 new br new bath new bath 2 new ac

 

 

4.

Why I Still Buy and Sell Real Estate Even Though I am Financially Retired

I advertise a lot online and on Craig’s List to find new cash buyers out of state for our San Antonio investment properties and San Antonio turnkey properties.

When I write my ads, I tend to highlight some facts about myself as a San Antonio property wholesaler and San Antonio real estate investor:

  • I have a monthly cash flow from my properties over $40,000.
  • I financially retired at 28 with $20,000 per month in cash flow.
  • I have done about 500 rehabs and more than 1000 deals in 15 years in San Antonio under market value properties.
  • I no longer work but I choose to.

I do not write these things in an arrogant way. I state these facts because I want out of state property investors to know they are dealing with a serious San Antonio real estate investor and operator in me. I know what I am doing and I have a long track record that proves it.

Sometimes, however, I get silly responses from some of my ads from negative, bitter types who don’t like my San Antonio real estate investing. Usually they are failed real estate investors, in my experience, and they’re jaded and cynical. Here’s the most common silly email I get:

Negative Type: ‘If you’re so rich, why don’t you just buy the house yourself?’

Me: ‘Bye.’

teddy pessimist
Teddy our mascot has some advice for you negative real estate investors.

I do not waste my time debating with negative people. But here is the answer to that question: I buy houses in cash every month that I do not find a buyer for 🙂. If the contract is about to expire, I buy it cash and hold onto the property. I raise the price by $5000 and I look for another investor to sell it to. I find one eventually.

Example: This below under market value San Antonio turnkey property was for sale for $55,000:

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  • Address: 262 Bogle St. San Antonio, TX 78207-7471
  • Year Built: 1946
  • Description: Under market value cash flow investment, excellent back yard, well established neighborhood, 4 bedrooms, 2 bath, 1236 sqft, lot size: .16 acres, estimated yearly taxes: $2,000.00, estimated yearly insurance: $700, estimated repairs: 25K includes paint in/out, new HVAC, flooring, foundation, update kitchen/baths, etc.
  • ARV:  $99,900.
  • Cash Price: $55,000.

I did not find a buyer for the Texas turnkey property in time. So I bought the San Antonio wholesale property myself – cash – and a month later I sold it for $65,000 to an investor who used hard money. I made $10,000 on the house that no one wanted :).

I do that about once per month. But there are other reasons I still buy and sell wholesale properties in San Antonio: Because I love it! Most successful entrepreneurs never retire.

My real estate mission also is to transform San Antonio neighborhoods and clean up the city; a lot of progress has been made and I am proud of the part I have had in that. But to make more progress, we need out of state property investors to bring in more capital.

That is why I continue to advertise for out of state property investors in San Francisco, Seattle, Los Angeles, San Diego and Las Vegas, among other places. Those are good places to sell Texas turnkey properties.

My last word on this subject to the negative types is this: Your chances of real estate investing success are much lower if you have a bad attitude. Wise up.

SOLD – 2006 N. Sabinas, San Antonio TX 78207

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  • Address: 2006 N. Sabinas, San Antonio TX 78207
  • Year Built: 1918
  • Description: Out of state investment property investors, this San Antonio turnkey property is a gorgeous, updated home in super hot area and location west of downtown, 3 bedroom, 1 bath, 1,000 sq feet. Perfect first home recently rehabbed with updated kitchen, HVAC, paint in and out, flooring and bath, updated plumbing and electrical.
  • Exit Strategy: Owner finance or rent for $1195 per month. We will rent or sell property for you.
  • Price: $119,900, cash investors welcome. Also can be financed with 20% down, lenders available – Gary F. Curran, President, Curran Mortgage Inc. 877-522-4780 Direct.
  • For Showing; Contact Joe at 210 816 4280 or contact us. Spanish available.

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FOR SALE – 4003 Colonial Sun Dr., San Antonio TX 78244

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  • Address: 4003 Colonial Sun Dr., San Antonio TX 78244
  • Year Built: 1984
  • Description: Out of state property investors, this San Antonio turnkey property has been recently rehabbed 3 bedroom, 1 bath, vaulted ceiling in living room, new tile, new interior paint, covered back patio and storage shed.
  • Price: $79,900 cash, investors welcome. Also can be financed 20% down, lenders available – Gary F. Curran, President, Curran Mortgage Inc. 877-522-4780 Direct.
  • Exit Strategy: Owner finance or rent for $799 per month. We will rent or sell property for you.

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SOLD – 1022 McIlvaine, San Antonio TX 78201

 

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  • Address: 1022 McIlvaine, San Antonio TX 78201
  • Year Built: 1918
  • Description: Out of state investment property investors, this is a gorgeous, updated San Antonio turnkey property home in super hot area and location west of downtown, 3 bedroom, 1 bath, 1,000 sq feet. Has been rehabbed to include paint in and out,will install exterior unit A/C before inspection, new flooring, new kitchen and bath tile, new blinds, updated bath and kitchen fixtures, new kitchen cabinets, granite and appliances, must see to believe!
  • Price: $139,900 cash – investors welcome. Also can be financed 20% down. Lenders available – Gary F. Curran, President, Curran Mortgage Inc. 877-522-4780 Direct.
  • Exit Strategy: Owner finance or rent for $1395 per month. We will rent or sell property for you.
  • For Showing; Contact Joe at 210 816 4280 or contact us. Spanish available.

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