san Antonio fixer upper – Page 3

November 4, 2016May 29, 2021

How Pulling Cash Out of Investment Properties Can Increase Your Portfolio

If you are like many San Antoni real estate investors, you only have so much cash to invest in your buy and hold properties.

When many of our investors started out, they only had 10k or 20k or their own money. When you have limited investment capital like that, you have a few options before you:

Buy under market value properties and flip them for a profit
Buy and hold rental properties in cash and save the cash flow to buy more
Buy and hold rental properties with mortgages and buy more with cash flow

Both of those options for investing in properties can work well, and I have done both. Naturally, both of those strategies have downsides:

Flipping properties can be challenging to do profitably in some markets. For example, in 2016, flipping affordable homes in San Antonio for significant profit is more difficult as prices have risen the last two years, and construction costs have increased with the stronger economy. Finding under-market value properties that allow a flip profit have been hard as well. That’s why some flippers i know have been doing few deals lately.
I believe in buying and holding properties as rentals or with owner financing for cash flow. But it obviously takes a long time to save up cash flow to buy more properties. I prefer to buy my homes with all cash and it will take a long time to save up the capital for more, but you also can buy them with 3.5% or 5% down if you can qualify for the mortgages. That way you can buy more homes faster.

Another way to build up your portfolio of under market value San Antonio fixer upper properties is this:

Buy your first San Antonio investment property with all cash.
Rent it out after you fix it, and wait a year.
With property values rising, you should be able to do a cash out refinance of that property and get enough cash to at least do a down payment on another property.

Note that you will need to have considerable equity in the rental property; many lenders want 80% or lower loan to value to do a refinance.

Or, consider pulling equity out of your personal residence and buying rental properties, or owner financing them. If you are getting 3-4% interest and you put that money into a property that makes you 12% or 14% per year, you really cannot go wrong. You will need to work with an expert investor to show you how to do it, and you also need to buy the right property, but this is very doable in San Antonio right now, as prices on affordable homes are often under $50,000.

Here is a nice San Antonio investment property I have right now that will return 12-14% per year:

Address: 127 Hopkins St. San Antonio, TX 78221
Year Built: 1972
Description: Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
Cash Price on San Antonio Fixer Upper: $39,900
Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.

October 27, 2016

Consider Owner Financing Your San Antonio Fixer Upper to Save on Repairs

The most popular way to buy and hold properties in San Antonio is to renovate and rent them out.

I own many rental properties myself, and there is nothing wrong with doing that. But the majority of my portfolio continues to be San Antonio buy and hold properies that I owner finance.

Owner financing usually works very well in San Antonio because we have so many blue collar workers who make $3000 to $5000 per month as a family. Many of them have no credit or poor credit. But if they have a good, steady job and can prove their income, owner financing these San Antonio fixer uppers often is better than renting them out. Why?

The major reason that I find as an owner of under market value San Antonio investment properties San Antonio investment properties is that I can save thousands of dollars on renovating the property. I let the new owner of the home do most of the repairs. Most of the repairs that I do are just enough to get it sold.

For example, consider this $39,900 cash San Antonio fixer upper:

Address: 127 Hopkins St. San Antonio, TX 78221
Year Built: 1972
Description: Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
Cash Price on San Antonio Fixer Upper: $39,900
Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.

If I rented this out, I would need to probably do at least $15,000 in additional rehab work. I can do it, but it will lower my cash reserves and lower my ROI. Also, prices of San Antonio construction materials are higher these days, so I prefer to owner finance the home with limited repairs.

With an owner finance deal, I will only need to remove trash and brush, and do some minor plumbing work in the kitchen and bathroom, plus do a full cleaning. Then I will find a good buyer with a good job with poor credit, and he or she can continue to fix it up. I have found that these types of owner finance deals on affordable San Antonio properties can work out very well for the investor. What do you think?

October 13, 2016January 6, 2017

SOLD – 127 Hopkins St. San Antonio, TX 78221

Address: 127 Hopkins St. San Antonio, TX 78221
Year Built: 1972
Description: Location Location! Very popular neighborhood with extra-large back yard south of downtown. This is a high ROI, under market value San Antonio investment property ! – 3 beds 1 bath, 850 sqft, built: 1972, Lot Size: .16 acres, Yearly taxes: $1,052.00, Estimated yearly insurance $600.00, Estimated repairs: 5K, landscape tree removal, trash removal interior/exterior. ARV: 69.9K
Cash Price on San Antonio Fixer Upper: $39,900
Exit Strategy: Owner Finance this San Antonio investment property with 5K in clean up: 5k down, $695.00 monthly P/I, 30 year amortization, 10% interest, Price: 69.9K.
Sold and Rental Comps: Rental Comps 127 Hopkins Sold Comps 127 Hopkins
Contact us for more information or to make offer.

More Photos:

July 10, 2016May 29, 2021

Why I Love Buy and Hold Real Estate Investing in San Antonio TX

I see five big advantages with buying and holding San Antonio investment property.

I Make Regular Income

Most investments offer either a regular return or appreciation. San Antonio real estate investments offer both! A really good buy and hold investment property, such as the one on Wagner St. listed below for an under market value price of $49,000, offers strong positive cash flow that offsets my expenses and any debt. It also provides me a nice monthly income.

If you read much on this website, you’ll know that many of our San Antonio investors do buy and hold investing with owner financing for long term cash flow.

Depreciation

Fixing and flipping in San Antonio is well and good, although it is harder to do in this appreciating market. I can tell because flippers call me wanting properties for .50 on the dollar! Yeah right, not in THIS market!

The great thing about buy and hold property is that the IRS lets you write off depreciation on the property over 27.5 years. This is ‘negative’ income but it’s just negative on paper, which helps my tax situation.

Equity Increase

If you have a mortgage on your San Antonio investment property, the cash flow lets you pay the mortgage without spending your own cash. And, each month, part of your principle is paid down. About 20% of each loan payment increases your equity in the property. You can then borrow some of that capital if you like to buy more investment properties.

Appreciation

Buy and hold investment properties can appreciate in value depending upon the state of the market. Most of my under market value fixer uppers in San Antonio appreciate at 3-4% per year. During the last crash, most of my properties did drop in value, but I was still able to have positive cash flow from them. I was even able to increase rents on some of them.

I am mostly a cash flow investor anyway; appreciation isn’t a big deal to me.

Leverage

If you put $20k into stocks and it increase 10% in value, you make $2000. Not bad. But if you put 20k into San Antonio investment properties, you can buy a $100k fixer upper with an 80% loan. If it goes up 5%, you made $5000 with only $20,000 invested!

Even if stocks have a higher return, it doesn’t matter because real estate returns are based on much more than the principle you invested.

If you are interested in San Antonio buy and hold investing, here is a great 15% or so ROI deal to get rolling.

San Antonio Wholesale Property Address: 1515 Wagner Ave. San Antonio, TX 78211.
Year Built: 1949
Description: Location Location! Cash Flow! Under market value, 3 beds 1 bath, 816 sqft, built: Lot Size: .14 acres, Yearly taxes: $600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, flooring, roof repairs.
Estimated Repairs: 15k
Cash Price: $49,000
Exit Strategy: Rent San Antonio investment property with 15K in repairs: $850-$900 per month — or Owner Finance with 15K repairs: 5k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K. 15% ROI is possible.

June 21, 2016

San Antonio Real Estate Market Continues to Rise in June 2016

According to the San Antonio Board of Realtors, monthly housing reports in our south TX city continue to show steady growth and rising values.

In May 2016, 2800 homes were sold, which is a 10% increase over May 2015. Also, May 2015/May 2014 saw a 9% increase in home sales over a year ago.

The average selling price of a house in San Antonio today is $249,000, with a median price of $209,000, which is up three percent from a year ago. The average price of San Antonio homes sold in May 2015 increased 10% from a year ago.

In April, San Antonio houses that are less than $200,000 were more than half of what was sold in the city. In May, 48% of the market involved houses that sold between $200,000 and $500,000.

San Antonio’s growth is higher than Texas’ overall, but the city is still a very affordable place to both live and invest. The average home price here of $249,000 is far less than the Texas average of $271,000.

Meanwhile, the city’s commercial development continues to grow strongly. A May 2016 report by Marcus & Millichap’s Retail Research Market Report found that the retail vacancy in San Antonio has reached an all time low. There also has been limited new retail construction, so the trend of increasing occupancy and rising rental prices will continue to have an affect on the commercial market.

The employment base of San Antonio will grow at a healthy 2.5% clip for 2016, which should contribute to the rising demand for various retail businesses from grocery stores to service companies.

In my under market value San Antonio real estate investing business, we continue to see strong growth in prices and demand for affordable homes, as well. I did manage to get this San Antonio fixer upper under contract and for sale for just $52,000, which will produce a rate of return of more than 15%:

San Antonio Wholesale Property Address: 1515 Wagner Ave. San Antonio, TX 78211.
Year Built: 1949
Description: Location Location! Cash Flow! Under market value, 3 beds 1 bath, 816 sqft, built: Lot Size: .14 acres, Yearly taxes: $600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, flooring, roof repairs.
Estimated Repairs: 15k
Cash Price: $52,000
Exit Strategy: Rent San Antonio investment property with 15K in repairs: $850-$900 per month — or Owner Finance with 15K repairs: 5k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K.

June 14, 2016November 30, 2016

SOLD – 1515 Wagner Ave. San Antonio, TX 78211

San Antonio Wholesale Property Address: 1515 Wagner Ave. San Antonio, TX 78211.
Year Built: 1949
Description: Location Location! Cash Flow! Under market value, 3 beds 1 bath, 816 sqft, built: Lot Size: .14 acres, Yearly taxes: $600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, flooring, roof repairs.
Estimated Repairs: 15k
Cash Price: $49,000
Exit Strategy: Rent San Antonio investment property with 15K in repairs: $850-$900 per month — or Owner Finance with 15K repairs: 5k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K. 15% ROI is possible.
Comps: Rental Comps 1515 Wagner Sold Comps 1515 Wagner
Contact us for more information or to make offer.

More Photos:

June 9, 2016May 29, 2021

Buy and Hold Success Story – $50k Investment – $47k Return

Back in 2013, one of our investors bought their first San Antonio investment proeprty: a $50,000 buy and hold deal a few miles north of downtown San Antonio.

This was a point in the market when we did not have to do much rehab on our San Antonio investment properties. He picked up this house for a bit under $50,000 and cleaned it up with a broom and got rid of the trash. The total investment was $50,000.

At my recommendation, he did a seller finance deal on this San Antonio fixer-upper, under market value property with the following terms:

$50,000 cash purchase
$80,000 owner finance price
Zero rehab by investor
$806 per month
14% ROI

dasdf — After rehab, completed entirely by end buyer.

The owner of the property did a fantastic job on rehabbing it, as you can see by the pictures. But that is not the end of the story on this San Antonio investment property!

More Pictures After Rehab:

In August 2016, the owner of the property decided to cash out the investor. She paid him off with the proceeds of the sale of one of HER investment properties.

She paid him a sum of approximately $75,000, which is what was left on the mortgage. So, not only did he make $25,000 on the sale of the property, he also made approximately $22,000 in payments over 2.5 years! He made a total return of $47,000 on his $50,000 investment!

Now that is a fantastic San Antonio investment property return!

May 28, 2016May 28, 2016

Why Some Investors Are Flipping in Austin and Buying and Holding in San Antonio

Forbes magazine recently had another one of its Best Real Estate Investing Cities list, and Texas did very well. Austin was listed as the #1 city to invest in, and San Antonio real estate investing came in at #3. Houston, Dallas and Ft. Worth also made the top 10 list.

Some real estate investors have been pulling out of the Austin market, however, due to the high costs of real estate there. Forbes magazine gives us a clue why: The gross metro product for that city grew 24% from 2011 until the end of 2015, but houses there appreciated by 34%.

Meanwhile, the average home price in Austin was $334,000 in 2015. So clearly real estate prices are seriously on the rise in Austin. That’s why many investors call me up and are looking for San Antonio investment properties. San Antonio real estate properties are much cheaper; you still can buy a good affordable fixer upper in San Antonio for $45k to $50k. And the average home price here is about $210,000.

Given how much cheaper houses are here, there is lots of interest in San Antonio investment properties. However, you should note that days on market is longer in San Antonio than Austin. So what some investors who are interested in flipping under market value properties are doing is doing a flip or two in Austin and then doing buy and hold in San Antonio.

As a San Antonio property wholesaler, I have flipped many properties in San Antonio TX over the years, but in this current market, we are seeing profits on our flips of $7k to $10k. And days on market can be 90 or 120 days. For that reason, I am not strongly seeking out fix and flip investors at this time. I will do them for the right property and right investor, especially if the investor has the cash to do 4-5 at once. That way, both of us can make a good profit. Also, if you are a patient investor, then a San Antonio flip can work well. Just do not expect a house to sell in 20 days like in Austin.

I think the flipping market will get better in San Antonio once the market slows down in the next year or two.

So I have some investors flipping in Austin, and once they have 100k or 200k, they buy and hold in San Antonio with one of our $50k San Antonio fixer uppers:

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: 50k in repairs to flip, 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: $125,000.00
Cash Price: $65,000.
Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, ~$1295.00 monthly P/I, 30 year amortization, 10% interest.
Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, then FSBO at 105K, 10% interest, $1095 monthly PI/TI, 30 year amortization.
Alternate Exit Strategy: Flip with $50k in repairs. $8000 to $10000 profit.

I made the vast majority of my money in San Antonio real estate investing in buy and hold over the long term. Buy and hold in San Antonio is always a good deal because affordable homes seldom rise above 75k.

May 25, 2016May 29, 2021

My Best Tips for Successful Buy and Hold Investing in San Antonio

Investing in under market real estate in San Antonio has treated me well over the years. I firmly believe that investing in under market value fixer upper San Antonio properties for the long term is the best way to enjoy long term cash flow.

If you are on the fence and are about to dive into buy and hold investing, I have some simple tips to share, as a successful San Antonio property wholesaler:

Work with a real estate agent and investor

Most real estate agents just represent people who are buying or selling their personal residence at retail prices. The majority of agents do not invest in real estate themselves, so they are often unable to help you find a good under market value fixer upper that will produce good positive cash flow.

It can help to become an agent yourself so you can source your own deals, but it’s not essential at first.

Cash flow!

You need to get a San Antonio wholesale property under market value enough so that when you do the repairs and collect rent from the tenant, you will have enough to cover all of your expenses. These usually include mortgage, taxes, insurance, repairs and vacancies.

Right now, the San Antonio real estate market is pretty hot, and good fixer upper deals for affordable homes are harder to find. This is why working with a highly experienced real estate agent and investor is so important: She can help you find a good under market value deal that can produce cash flow. Also, if you work with an experienced investor agent, she will probably have a good rehab crew that can do the fix up work at a fair price.

Here is a nice wholesale property deal in San Antonio I just found that will produce $1150 per month in rental cash flow:

Address: 126 E Dullnig Ct., San Antonio, TX 78223
Year Built: 1919
Description: Major cash flow on this San Antonio fixer upper distressed property – 4 beds 1 bath, 1100 sqft, two large storage units in the back, Lot Size: .19 acres, Yearly taxes: $1,600.00, Estimated yearly insurance $700.00, Estimated repairs: 30K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, central HVAC, flooring, 2 room conversations, foundation/roof repairs.
Max ARV: $109-$115k

Cash Price: $55,000

If you do that San Antonio distressed property all cash, you should have about $700 left for positive cash flow – not bad! – after expenses.

Due diligence

You need to carefully consider if the wholesale property you want to buy will generate the cash flow you want.

A very common error for new fixer upper investors is to overdo the rehab or not be aware of all the things that have to be fixed.

Only invest if the cash flow is there

I never buy an under market value property based upon what I think the value of the house will be in a few years. That is real estate speculation and that is a great way to end up in the poor house. If after I run the numbers – property cost, rehab cost, all expenses – I generate positive cash flow of a few hundred dollars, I do the deal.

Don’t forget repairs and vacancies

I like to account for at least $50 per month for repairs on my fixer upper deals in San Antonio. Also, plan on a 5% loss for vacancies. However, I often do San Antonio Section 8 rentals, and I find that this type of rental income is quite solid and safe; I have Section 8 tenants who have been with me for 5 years or more.

Above all, after you find a good potential under market value property that will produce positive cash flow, do the deal. Don’t sit around thinking about it too long or you may never take action. Many people think about investing in San Antonio wholesale property, but the majority never do a deal because of fear.

If you do your due diligence as I outline, there should be no reason to not move forward on that property!

May 25, 2016September 15, 2016

SOLD – 126 E Dullnig Ct., San Antonio, TX 78223

Address: 126 E Dullnig Ct., San Antonio, TX 78223
Year Built: 1919
Description: Major cash flow on this San Antonio fixer upper distressed property – 4 beds 1 bath, 1100 sqft, two large storage units in the back, Lot Size: .19 acres, Yearly taxes: $1,600.00, Estimated yearly insurance $700.00, Estimated repairs: 15K, includes interior paint, electrical/plumbing up to code, landscape, trash removal, kitchen/bath updates, central HVAC, flooring, 2 room conversions, foundation/roof repairs.
Max ARV: $109-$115k

Cash Price: $48,000

Exit Strategies:

Rent with 30K in repairs: $1150.00
Owner Finance San Antonio wholesale property with 20K repairs: 5k down, $995.00 monthly P/I, 30 year amortization, 10% interest, Price: 99K. Or, owner finance with quick $5k clean up, resell for $79,900.

Contact us for more information or to make offer.
Sold and Rental Comps: Rental Comps 126 E Dullnig Ct Sold Comps 126 E Dullnig Ct

More Images of this San Antonio under market value property: