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

We 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 neighborhood 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:


  • 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