High ROI Real Estate Investment Opportunities in Texas
Home 4 Sale: 251 Prospect St.
2 beds 1 bath 884 sqft, home has already been renovated with washer and dryer connections. Close to Kelly and Lackland Air Force Bases.
Asking Price: $68,000
Exit Strategy: Rent for $900 monthly for two years, Max ARV after 2 years: $89,000
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: $65K. 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: $65,000
Exit Strategy: Buy, Rehab and Hold this San Antonio investment property.
Contact us for more information about this San Antonio rental property
http://www.texascashflow.com/listing/for-sale-1232-leal-st-san-antonio-tx-78207/
Description: Cute cottage on large lot, 3 Bd / 1 Bath 800 Sqft on a 0.19 acres lot. Fresh paint in/out, new central HVAC, close to downtown.
Price is firm, investors only, property rented $695 per month until 1/31/18.
Price: $69,900
Exit Strategy: Buy and Hold this San Antonio investment property for $700 per month.
Contact us for more information about this San Antonio rental property
Address: 950 Kendalia Ave, San Antonio Texas, 78221
Description: Location Location, just south of downtown, short distance to the river walk, the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization) and the Blue Star restaurants river trails: properties are going to double in value in the next 5 years, home needs to be converted into 3 beds 1 bath: estimated repairs for project: 50K , purchase price: 49K, Max After Repair Value: 145K, see attached comps.
Price: $49,000 cash only
Exit Strategy: Buy and hold with $50k in repairs; or fix and flip, ARV 145k.
Comps: Sold Comps 950 Kendalia Ave Rental Comps 950 Kendalia Ave
Contact: Email us for more information or to make offer.
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Address: 20607 Liatris Ln San Antonio, TX 78259
Description: Don`t miss the opportunity to own this charming, 3 bedroom 2 bath home, 1533 sqft. in a desirable location off of Bulverde Rd. There is a study in the front of the home that could be used as a formal dining room. NEW roof just installed and a fresh coat of exterior paint. Washer & Dryer and Water softener will covey. Beautiful covered patio for outdoor entertaining. Plantation shutters in the living room and study. Walking distance to Bulverde Creek Elementary.
Price: Only $190,000
Exit Strategy: Rent this San Antonio investment property for $1,500 per month
Southern California home sales dropped 5% in May 2017, yet home prices have still hit a record high in that areas.
According to recent real estate research in California, approximately 8.5% fewer homes were sold in Los Angeles County since March 2017, but home prices are still at a near-record high average of $485,000. This is almost as high as the all-time high of $500,000 in 2007.
Southern California is hardly the only part of the state where real estate prices are testing the ability of workers, families and real estate investors to afford homes. Prices in May 2017 in California hit a record high in Orange County, California, and San Diego County, California.
Also, Forbes reports that the San Francisco, California area is seeing soaring median home prices. Around San Jose, Sunnyvale, and Santa Clara, the median home price topped $1 million in the first quarter of 2017. It was just $535,000 a year ago.
Why the Rise in Home Prices in California?
The biggest reason this is happening is not enough homes are being built in much of California’s major metro areas to meet booming demand. This is because it is harder to get building permits in much of California.
On the other hand, Texas has a very liberal policy on building new homes. Both states feature cities with high job growth; San Francisco and Oakland added 356,000 new jobs in 2016, and in Dallas, there wee 413,000 new jobs added in the same period. But in San Francisco, only 20,400 new homes were built, and there were 120,000 new ones built in Dallas.
This difference in building permit policy has had various effects. Homeowners in Calfornia are enjoying huge increased in property values, which is great for them to pull out cash and invest in real estate. But for people who want to buy, it is extremely difficult to buy in current circumstances. Many home buyers and real estate investors are priced out of the market.
In areas such as San Antonio, Texas, prices only have doubled in the last 20 years or so, but many more people can afford to buy a home for themselves or for real estate investments.
As home prices in California have soared, we have seen increasing demand for under market value real estate investments in San Antonio. Investors want to see high-ROI investment opportunities in Texas. Many affordable homes are available in San Antonio for under $60,000 wholesale. With $20,000 in rehab, the home can be rented for $800 per month. That is the type of positive cash flow that many California real estate investors want to see.
Address: 2943 Pitluk Ave, San Antonio, TX 78211
Description: Affordable homes are at an all time high demand, excellent location south of downtown, needs to be converted into a 3 bedroom 2 bath, 2 beds, 1 bath, 1014 sqft., estimated repairs: 50K, clean/lawn maintenance/interior paint/exterior paint, plumbing/electrical up to code, flooring, sheetrock/texture, roof, foundation, 1 room addition. Max After Repair Value: 149K,
Price: $59,000 cash
Exit Strategy: we recommend buy/remodel/rent then resale in 5 years
Comps: Rental Comps 2943 Pitluk Sold Comps 2943 Pitlik Ave
Contact us for more information
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As the economic recovery gathers steam, many real estate investors in Texas are finding that there is even stronger demand today for affordable rental properties than a few years ago.
The San Antonio economy is doing well with low unemployment rates, rising wages and a growing population. But there are signs that the prices of new and existing homes in San Antonio are taxing the budgets of middle-class families. Many of them have good incomes, but may not be able to afford rising home prices and down payments.
Last month, the National Association of Realtors stated that the sales of existing homes in San Antonio dropped 2.3% in April 2017. Prices have continued to surge, and sometimes multiple offers are coming in on some affordable homes.
The increase in prices in the last few years of existing homes has somewhat exceeded the rise in wages. So, how is this good news for investors?
Well, investors interested in buy and hold properties and high ROI investment properties in Texas should strongly focus on rehabbing under market value properties and renting them out.
There are plenty of San Antonio families who have enough cash to pay for a rental deposit and $1000 per month in rent, but lack the down payment or income to qualify for a mortgage. In our owner finance market, we are seeing many people who have the income to afford the mortgage payment, but simply lack the cash for the down payment.
This means there is a serious opportunity for the rental property buy and hold investor. Also, with San Antonio properties increasing substantially in value, the buy and hold rental property investor will have a serious chance to increase their equity.
Here is a really nice buy and hold rental property deal I am featuring:
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
The under market value San Antonio investor can buy both for $80k and rehab each one for $40k each. You should be able to rent each property for more than $1000 each. And the increase in equity due to their location will make this a very high ROI investment opportunity.
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,
If you plan on using financing to help your IRA to acquire real estate you have walked smack dab into one ugly tax trap under the name of “Debt Financed Income”. Financing or as the tax law refers to it as “leverage” refers to obtaining a Mortgage, seller carry-back note, a private or hard money loan.
Normally income earned by an IRA is not subject to taxes, however, if real estate is purchased with borrowed funds, the income will be considered “Debt Financed Income” and the profits generated will be subject to “Unrelated Business Income Tax (UBIT).
Huh?
The simplest explanation is, that the IRA is using non-IRA money to make tax deferred profits. Since the purpose of the IRA is to invest personal pre-tax contributions the use of non-IRA funds falls outside this design and results in a percentage of profits being taxed at trust tax rates in the calendar year when the profits are realized.
Here is an example, if your IRA purchased a property for $100,000, and financed $60,000 of the purchase price, the debt/basis percentage would be 60%, and so the IRA would have to include 60% of the profits as taxable income.
Lets say your profit on the sale of this single family house was $50,000 x 60% (debt basis) then $30,000 is considered “Debt Financed Income” and is subject to “Unrelated Business Income Tax” which is assessed at trust tax rates – in this case up to 39.6% which amounts to a kick in the gut tax hit totaling $10,238.00
Oh by the way, if you think you can dodge the bullet because you are going to rent the house, think again. The net profits from your rent roll are also subject UBIT each and every year– Yikes!
Wouldn’t is be great if “Unrelated Business Income Tax” could simply disappear?
This is where choosing the right type of plan makes all the difference in the world.
A One-Participant 401k plan is NOT subject to UBIT as long as the financing is non-recourse to you personally. Congress actually created a special tax code exemption for Qualified Pension Plans (401k’s) that removes them from the profit sucking UBIT vacuum an IRA cannot escape.
Choose a One-Participant 401k plan and you can gorge yourself on all the financing you want to and invest in high ROI real estate properties for wealth building. Under market value real estate investments are a great way to build wealth, and the solo 401k is the way to do it.
| DAVID COLE | |
| ph: | 928-350-8368 |
| fax: | 928-318-6695 |
| website: | www.freedomfirst401k.com |