SOLD – 106 and 110 Dewitt, San Antonio Texas, 78210

High ROI Investment Opportunity! High Real Estate Appreciation! 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!

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

Comps: 110 & 106 Dewitt rental comps 110 & 106 Dewitt sold comps

Contact us for more information

More Pictures: 

 

 

New York Times Highlights San Antonio’s Development Prowess

As most real estate investors in San Antonio know, billions of dollars of development have poured into San Antonio in the last 20 years. And the city is really starting to get on the national and international map, both as a tourist destination and also as a place to find high ROI investment opportunities in Texas and elsewhere.

The New York Times just wrote a new piece about taking 36 hours to visit San Antonio, and it highlighted much of the revitalization of the Alamo City in the last few years. For example, did you know that the River Walk, which opened in 1941, was expanded in 2013 from the three mile tourist section to a full 15 miles?

The downtown area of the River Walk is where all the tourists flock, and it’s great; there are many wonderful bars and restaurants along the narrow sidewalks. But the River Walk is now much bigger, and you can walk two miles down to the wonderful Pearl Brewery area. There you can enjoy a less crowded and less commercialized walk as you pass art installations, wetlands, and even an underpass that features a very cool soundtrack of singing birds.

For San Antonio real estate investors, this development has led to property appreciation, better investment opportunties, and more are slated for the future.

On the east side of town, the local developer Efraim Varga plans to invest $150 million into a mixed use development called Essex Modern City. It is going to include 80,000 feet of office space, 65,000 of retail space, 250 apartments, 150 condos and 80 townhouses.

Developers of this space are hoping that tech companies will move in to lease some of the creative office space. The site of the development is very close to the Alamodome, Hemisfair and the San Antonio River, so the development is expected to do quite well.

Meanwhile, I continue to buy  San Antonio fixer uppers, which are doing very well with all of the revitalization this city is seeing. I am seeing stronger demand for my end buyers with my owner finance program. Most of my neighborhoods are within a few miles of downtown and much of the revitalization that is taking place:

  • Address: 3118 Owasso St. San Antonio, TX 78211
  • Description: San Antonio investors, flip this house for a nice profit,  4 beds 2 bath, 1560 sqft, new homes on the same block, estimated repairs:60-80K, Price: 49K, Max ARV: 159K-189K, estimated profit: 40-80K, 3 month major project.
  • Cash Price on San Antonio Fixer Upper:  $49,000 CASH ONLY
  • Exit Strategy: Flip with 60-80k in repairs, profit 40-80k.

San Antonio Housing Market Was Red Hot in 2016

The housing market in San Antonio in 2016 was hot as home prices went to the highest levels ever. The local paper reported that 29,508 homes were sold, which was more than an eight percent increase from 2015.

The median price for San Antonio real estate increased six percent to $204,300. This was the very first time that the median sales price had been over $200,000 for an entire year, including the real estate boom years of a decade ago.

Also, the inventory of homes that are available dropped in December 2016 to only three months. this indicates there are more buyers than sellers in San Antonio.

So what does this mean for San Antonio real estate investors? Well in my experience, it means that real estate prices are going up, and buying homes for many people in San Antonio is becoming more difficult. For people who earn a good income of course, the homes in San Antonio are very reasonable.

But for people who earn $3000 per month and don’t have credit, buying a home with conventional financing is very difficult. That is the reason I focus my San Antonio investment strategy on owner financing.

Here is a good example of an under market value property that I am selling right now:

  • Finance Your Investment Properties
  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 69K
  • Cash Price on San Antonio Fixer Upper:  $42,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $695.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69K, see attached sold/rental comparables.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton

This property is only $42k cash, and with $5k in repairs, you can sell this with owner financing (you’re the bank), to a family with job and income but no credit. The major advantages of this type of deal are that you do not have repair expenses ongoing. Also, you can limit your initial out of pocket costs. If you were to rent this house out, you would have to do $20,000 in repairs, not $5000.

Owner financed homes is the backbone of my real estate investment portfolio in San Antonio. Each home earns at least 10% ROI with no expenses.  This type of buy and hold investing helps to support the working families of San Antonio as well, so it is a win win.

How To Do Only $5,000 In Repairs on a San Antonio Fixer Upper

One of the challenges of being a real estate investor is how to do investment property repairs affordably without going over budget. If you spend too much on your investment property repairs, you can lose all profit in your deal.

I have done many San Antonio property rehabs in the last 16 years. Some of them cost $10,000, $20,000, $30,000 and more. Those were rental properties, and while I was still able to make a positive ROI on most of those deals, I prefer when I can to limit the repairs on San Antonio investment properties to $5000 or so.

How do I limit repairs on an investment property to $5000, you ask?

Simple. I do not rent the property out. Renting out the property means you have to do extensive repairs of $15,000 or more and have the property inspected by the city in most cases. Spending that much on rehabs makes it harder for me to make money. Another problem with extensive repairs on investment properties these days is construction costs have shot up in San Antonio in the last 24 months.

So, rather than renting the home, I sell the property with owner financing to a blue collar family with a job but no credit. I get $5000 down, 10% interest, and a payment ranging from $695 to $995 per month usually.

The family usually have home repair skills, so they see it as a good deal to buy a fixer upper in San Antonio and perform much of the repairs themselves.

Basically, I just spend $5000 to do inside and outside paint, minor plumbing and electrical, clean up the lawn and get rid of junk. Then I sell it with owner financing. Buy and hold with owner financing is my preferred exit strategy. It allows me to increase my ROI and not have to maintain San Antonio investment properties.

Another advantage I have is that I own a construction company, so I am able to do repairs on San Antonio investment properties very affordably.

Below is a nice under market value San Antonio investment property deal that is great for an owner finance strategy:

  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 69K
  • Cash Price on San Antonio Fixer Upper:  $42,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $695.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69K, see attached sold/rental comparables.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton
  • For more information, please contact us. 

SOLD – 50K – 1319 S Hamilton St., San Antonio, TX 78207

  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs to be converted to a 3 bed 1 bath, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 25K, clean/lawn maintenance/interior paint/front paint, room addition. Max After Repair Value: 109K, recommend to rent for 2 years then sale at Max ARV.
  • Cash Price on San Antonio Fixer Upper:  $50,000 CASH ONLY or hardmoney
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $750.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 75K, see attached sold/rental comparables or rent out $795 section.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton
  • For more information, please contact us. 

More pictures of San Antonio investment property:

Should I Flip or Buy and Hold? Yes!

People often ask me as a top San Antonio property wholesaler if it is better to flip or buy and hold? My answer is an emphatic ‘yes!’ Of course, it is a complex question and which type of real estate investment strategy you are going to focus on right now depends upon many factors.

When I first started as a San Antonio investment property investor, I focused mostly of flipping San Antonio houses. There was a good reason for that: I didn’t have much money! I found $2 million worth of private money and flipped 50 houses in my first year.

Many real estate investors like to focus their careers on flipping properties because they can (in theory) get their profits quickly and have their money tied up for as little time as possible. Another benefit of flipping is that it does not have the property management and long term holding costs that buy and hold investments have.

However, I am of the strong opinion that flipping San Antonio properties should be a short-term tactical strategy…like what I did when I started my investing career. Flipping a bunch of San Antonio properties was a means to an end: so that I could buy and hold a large portfolio of rental and owner financed properties.

Flipping Is Getting Tougher in San Antonio

I talk every week to investors who simply want to flip houses all the time. Or, they want to flip 5-10 houses per year, make $10,000 each, and eventually get into buy and hold real estate.

That is a viable strategy…..sometimes. However, the San Antonio real estate market continues to go up in value in 2016, and finding under market value properties in the 50-100k range (let alone the 100k+ range) that can be flipped for significant profit ($5000 or more) is getting tough.

In fact, it is getting so tough that last week I turned away three potential investors with more than $100,000 each to invest. I do not like turning away investors with six figures to invest in San Antonio real estate, but they wanted to only do flips.

As I have pointed out, flipping is hard to do profitably in this rising market now. Also, material costs have risen significantly due to the stronger economy.

Be Flexible!

There is nothing wrong with flipping houses, just as there is nothing wrong with buying and holding real estate. My best advice to many real estate investors is this: Be flexible in your investing strategy!

Many real estate investors limit their profits and ultimate success because they get stuck on one type of investing strategy no matter the market.

Personally, I strongly believe in buy and hold long term for wealth creation, but I’ll do flips in the right market if they are profitable.

In my expert opinion, the current San Antonio real estate market is best for buying and holding real estate.

As the market here is changing, I am no longer recommending that people flip properties with me.

I am focusing mostly on buying and holding with owner finance, AND with section 8 rental property.

Why Section 8?

Section 8 gets a bad reputation in some quarters. I love Section 8! Consider:

  • You get a guaranteed electronic rental payment monthly
  • The rent is usually higher than market rates
  • The renter needs to take care of the house to keep their voucher each year
  • The GoSection8.com website makes marketing a breeze.

Naturally, I have to screen my section 8 renters carefully for work history, credit and criminal record, but I find that I can get a property rented in 4-8 weeks. Meanwhile investors can wait six months to flip a house and sell it retail.

Another benefit of buying and holding with section 8 is that you can buy the house cash, rehab it, get it occupied, and then cash out refinance the house and do another rental property. That’s a great deal!

Below is a great little under market value deal that needs only 11k in rehab, and then can be rented section 8:

IMG_0022

    • 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: $65,000.
    • Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $99,000, $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: Buy at $65,000, remodel $11,000, rent $1095 per month.

 

 

 

 

 

What Should I Look for In a Wholesaler That Sells Under Market Value Properties?

As a very successful wholesaler of below market value properties in Texas, I know what many under market value property investors are looking for when they buy a property:

ROI and nothing else.

I definitely do understand why below market value property investors buying out of state investment property want to make a good rate of return! Many of my California cash buyers get tired of making 3% returns on their insanely expensive investment properties, so obviously they want to make as high a return as possible.

But as my mascot Teddy says:

teddy roi

Smart boy! 🙂 Currently, my under market value properties in San Antonio TX, we are seeing prices in the $60,000 range with $25,000 to $30,000 in rehab, which nets an annual rate of return of 11-12% typically. Some investors may not think this is enough, but I can tell you this: I was able to financially retire at age 28 by making 10-12% per year on under market value buy and hold investments, and $5000-$10,000 on flips.

Here is a good example of a great below market value property I own:

Front

  • Address: 914 W Hutchins Pl, San Antonio, TX 78221-2513
  • Year Built: 1950
  • Description: Add more Cash Flow properties to your portfolio, large fenced yard with mature tress, 9, 3 beds, 1 bath, 1300 sqft,  Yearly Taxes: $2,000.00, Estimated Yearly Insurance: $700, located south of beautiful downtown, well established neighborhood, parks, and schools, Estimated Repairs: 30-35K, flooring, electrical/plumbing up to code, bath/kitchen update, paint in/out, central HVAC, etc. Max ARV 109K with owner finance.
  • ARV: $119,000-$125,000 with owner finance
  • Cash Price: $59,900 firm.
  • Exit Strategy:Owner Finance with 30K repairs: 5-10K down, $1095 monthly PI/TI, 30 year amortization, 10% interest, Price: 109K; or Rent with 30K rehab: $1095.00; Or paint clean Jazz with 15K in repairs and owner finance for 87K.
    review sold and rental comps.

Now, many under market value investors will look at that return, which is around 11-12% and say, ‘Yeah, that’s pretty good, but I can go to XXXXX and make 15% ROI.’

I understand the sentiment, but if all you care about is ROI with below market value property investing, you could be headed for trouble. I’m sure there are some great $5000 properties that you can buy in Detroit! Good luck with that.

What I have learned in 15 years of buying and selling under market value properties is that there are other factors in play when you buy a property from a wholesaler:

  • How many rehabs have they done in the last 10 years and how long have they been in business?
  • How experienced are they in doing rehabs?
  • How accurate are their rehab numbers?
  • How experienced are they in finding quality tenants and owner finance buyers?
  • Are there ARV numbers accurate and is the house being prices with the market?

Those are just a few things that you should carefully consider besides the rate of return on your under market value property. After all, earning ‘16%’ doesn’t sound so good if you are having constant problems with vacancies, property damages and the rehab costs $30,000 more than was estimated.

A top notch wholesaler is an expert in the neighborhoods in which he works. He has done hundreds of deals and rehabs in those areas and knows exactly what a rehab will cost and how much to spend. He also knows what the house will sell for when it’s all said and done.

My point is that you should consider the experience and quality of the wholesaler you are working with, not just the raw, stated rate of return.

 

 

What Is the Worst Mistake in Buying Investment Properties?

I buy under market value properties in San Antonio TX. As the real estate market continues to heat up in San Antonio, more people are jumping into the real estate investment business.

Many people who start to invest in under market value investment property in San Antonio end up never making money or losing a lot of money. That goes the same for people looking for out of state investment property.

Most often, people run into real estate investment problems because they are impatient or do not have a good, long term plan for good cash flow on below market value property.

I have been successful with my San Antonio investment properties (I financially retired at 28) because I have a very simple plan that I always stick to:

I buy distressed San Antonio homes for 20% or more under market value, and resell them with owner or seller financing to make a 20% return long term. The vast majority of my portfolio is long term buy and hold in the best San Antonio investment property.

Of course, buying good distressed properties under market value in San Antonio is not easy. If it were, everyone would be buying them and retiring early!

Here is the most common mistake I see by far in people who buy distressed real estate properties and out of state investment property: They pay too much for the house and have very little cash flow!

They buy the house often at the top of the market, and the only way they make cash flow each month is if the property is always occupied, and there are no maintenance issues.

As soon as something goes amiss, they end up losing money each month and have no cash flow in their under market value San Antonio investment properties.

The biggest piece of advice I can give you is to always pay as little as possible for the investment property in the best cities to invest in real estate. If you are not skilled in negotiation or are just a beginner, you need to work with a skilled investor who can help you to get a low price on that below market value house.

If you have questions about investing for cash flow in under market value San Antonio houses, please contact me! I always can use cash partners and both of us will make a good profit in the best San Antonio investment property.

Turn 3 Properties Into 6 or More in 5 Years With Your IRA

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I am a strong believer of investing in under market value real estate property with all cash and owner financing them. When you buy distressed properties with all cash and finance them to qualified buyers, there is one overwhelming advantage with these below market value investments:

  • You have no mortgage on your property investment, so if the property is ever vacant for any reason, you do not have overwhelming financial pressure bearing on you. Over leveraged real estate investors were a major factor in the real estate meltdown five years ago.

Of course, on the other side of the ledger, you cannot purchase as many distressed sale properties as you could if you leveraged your capital and use 20% down conventional financing. This is always a valid concern for people with limited capital to invest in the best San Antonio investment property.

Still I would like to illustrate how the smart and patient investor can take three fixer upper homes and turn it into 6 and possibly more in 5 years, assuming you have no additional cash to invest after the initial investments. The illustration below assumes you owner finance the houses, so you do not have any maintenance costs. This is our tried and true positive cash flow model!

That $275,000 in Your IRA

I run across many aspiring investors that have savings and IRA assets of $275,000 or so. In current market conditions in San Antonio TX, that $275,000 can fund approximately three solid distressed sale properties in cash. Let’s illustrate with three houses we have right now:

  • Property 1 – 262 Bogle St., 78207: $50,000 + $30,000 rehab = $84,500 investment + $2500 closing costs, $2000 commissions = $89,000 total investment.

Total Owner Finance Cash Flow Per Year: $8940 ($745 per month after tax/ins.)

  • Property 2 – 109 Llano, 78223: $29,900 + $40,000 rehab = $69,900 investment + $2100 closing costs, $2000 commissions = $74,000 total investment.

Total Owner Finance Cash Flow Per Year: $9,000 ($750 per month after tax/ins.)

  • Property 3 – 1027 Sams Dr., 78221: $59,900 + $40,000 rehab = $109,000 investment + $3000 closing costs, $3000 commissions = $115,000 total investment.

Total Owner Finance Cash Flow Per Year: $12,000 ($1095 per month after tax/ins.)

Total Income from 3 Properties Per Year: $29,940

The next step would be to bank that positive cash flow from your three properties for up to five years. At the five year mark, you will have approximately $149,700 in your tax deferred IRA.

At this point, how many property investments you can buy depends upon the state of the San Antonio real estate market. Right now, the prices are higher because unemployment is lower, and more rehab is necessary to sell the houses. However, there is a high probability that in the next five years, there will be a substantial downturn in real estate prices.

In the last crash from 2008-11, the price of my distressed houses dropped from $50,000 median to $30,000 median. I was able to purchase many more homes during the downturn.

If the prices go down to approximately $35,000 per property plus $10,000 in rehab (possible in a slower economy given people simply want any house to live in), you could buy at least 3 more houses, and possibly 4. With three more houses, you would have approximately $45,000 in total cash flow from your grand total of six houses!

If the prices stay the same five years from now (which in my 15 year experience is very unlikely), you could purchase at worst two more properties, with a total cash flow from your five properties of $40,000 or so.

In either case, that cash can be banked in your IRA to buy more of the best San Antonio investment property whenever market conditions warrant buying more.

I am waiting until the next downturn to take my banked cash flow from my current portfolio to buy at least another 20 houses. You can and should do the same thing!

 

 

 

 

 

2513 W Poplar St, San Antonio, Texas 78207

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  • Address: 2513 W Poplar St, San Antonio, Texas 78207
  • Description: Fixer upper home, great opportunity to own cash flow property, Booming Texas Market, 3 beds, 1 bath, 1000 sqft.
  • Estimated Repairs on Distressed Property Sale:10K, includes interior texture/paint, new HVAC, minor flooring, minor foundation, plumbing/electrical up to code. Max ARV 79K with owner financing, Price: 45K cash.
    Exit Strategy: Owner Finance for positive cash flow with 10K repairs: 5k down, $800 monthly P/I, 30 year amortization, 10% interest, Price: 79K, can sell note after 1 year.
  • Positive Cash Flow: $700 per month with no maintenance. Consider this investment in property!