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So, You Want To Buy A San Antonio Fixer Upper!

If you’re a San Antonio investment property buyer, you know prices are falling in 2025. This is a fine time to pick up your next San Antonio fixer upper. Many San Antonio distressed property investors have been out of the market in recent times because of higher prices.

If you are getting back into the market and want to buy your next San Antonio fixer upper, we want to give you a refresher. You should keep several points in mind when you buy a San Antonio fixer upper and get ready to renovate it:

Keep The End Game Top of Mind!

A common issue I have seen with investors who have been out of the fixer-upper market for a few years is scope creep. Scope creep occurs when your investment property goals expand, resulting in a cost that is significantly more than you initially planned.

Experienced investors know that scope creep can be deadly to your profits and cash flow. What could have begun as a ‘simple’ sheetrock and paint job on that 2 BR/1 bath in 78228 could turn into a massive renovation, including fixing things that don’t need to be to rent it. If you fall victim to scope creep, you could exceed your repair budget by several thousand dollars.

If you want to flip that San Antonio investment property, overspending $20,000 on the rehab could torpedo your profits. Alternatively, if you want to buy and hold in San Antonio, you may be forced to raise the rent, which could result in the property sitting vacant for months.

Never Overpay

I remember the first investment properties I bought in Virginia. Three-bedroom, two-bath houses. I was young, inexperienced, and head strong. I overpaid for my houses, and this mistake made it challenging to make them positive cash flow deals.

It is common to become too excited about a certain fixer upper. You might manipulate the numbers to convince yourself that they work when they don’t. Overpaying for a distressed property is the #1 reason people suffer losses in real estate investing.

So, always approach property comps like a boring, crusty accountant (or the stereotype of one!). Only look at the numbers on paper or the screen. Keep emotion out of it. There’s nothing wrong with passing on a San Antonio fixer upper and waiting for a better deal. Better to wait than pay to much and suffer losses each month!

Pay Plenty For Inspections

Discovering that the ‘perfect’ property you bought has a profit-killing flaw doesn’t feel great. I’ve seen many local investors discover a problem with a property’s pier and beam foundation a day after they bought the home. That problem can increase your repair costs by 100% or more.

Always tour any property you want to buy, and it’s best to invest in a professional inspection. Inspect the foundation, look for signs of water damage, cracks in the walls, roof damage, discolored ceiling tiles from leaks, and issues with plumbing, electricity, etc. Always listen to the inspector’s report and advice. Take their experience and findings seriously. They could save you from buying a money pit.

Don’t Be Cheap On Repairs

Take all repairs seriously. If you go cheap, the price of the home will be lower, and the inspector will notice that you have done minimal, inexpensive maintenance. If you want to rent the house, going cheap on repairs always comes back to haunt you in the long term. Poor-quality repairs always lower the tenant’s quality of life, which usually leads to more vacancies as well.

Don’t Overrepair the Fixer Upper

It’s essential to prioritize the necessary repairs to maximize the ARV or monthly rent. Don’t do more than that. Overspending will cost you on your flip, or make you demand above-market rent. Also, overimproving the home may make it a bad fit for your neighborhood. You may end up with a house that costs too much for the people in that neighborhood, and the home is also not desirable to people who can afford it because of the neighborhood.

We will have another San Antonio investment property coming this month, so stay tuned!

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Can You Repair A Pier And Beam Foundation Yourself?

You bought a San Antonio investment property in 78228 for $75,000 cash. It’s a 2/1, 1400 square feet, and needs $50,000 of repairs. ARV is $170,000. But a problem surfaces: The pier and beam foundation is in rough shape, and the kitchen floor slopes. What do you do?

Many would call a professional foundation company. However, buying a distressed property in San Antonio often means doing some repairs yourself to cut costs. Repairing your pier and beam foundation yourself can be difficult, but it is possible. You need construction skills, the right tools, and a patient approach. Here are the steps to fix your San Antonio investment property pier and beam foundation.

First, inspect the foundation to determine the extent of the damage. Crawl under the home with a level, flashlight, and tape measure. Look for cracked beams, uneven piers, and signs of insect or rot damage. Check for sagging floors in your house. Look for stuck doors and windows. The soil may shift with changes in moisture, so look for poor drainage around the foundation. Note the problem areas and measure the height differences where the foundation has settled.

Second, improve drainage to prevent more foundation problems. Remove leaves from gutters. Ensure your downspouts are positioned at least five feet away from the foundation. Grade the soil around the home to slope away from the building. Try for a six-inch drop for 10 feet. If standing water persists, consider installing a French drain or consult a professional plumber for more advanced options.

Third, you need to jack up the San Antonio distressed property to level it. Purchase 20-ton capacity jacks and place them under the main beams, close to the damaged piers. You need solid, level ground. Or, use concrete blocks as a jack base. Do not move the San Antonio investment property more than 1/4 inch daily. This caution avoids damaged plumbing or cracked walls. Install temporary supports, such as steel posts, as you lift the house. Check the level often; you need to raise the home evenly to ensure stability. If you’re unsure about jacking, hire a structural engineer, as jacking up the house incorrectly can cause damage.

Fourth, after leveling the house, repair or replace the damaged piers and beams. If piers are settling, dig near the affected pier to the base, perhaps 18 inches deep. If the pier’s intact but sinking, add a concrete footing (12x12x12) reinforced with rebar. It needs to cure for at least a week. Then, place concrete blocks or steel shims to lift the pier to the right height.

If the beams or posts are rotted, remove the damaged areas with a saw and replace them with pressure-treated lumber. Secure any new beams with galvanized brackets or bolts. Make sure every connection is tight!

Last, after the repairs, lower the home slowly with your jacks. Take out any temporary supports as you proceed. Recheck your level to ensure the foundation is even. You may want to reinforce your crawl space with ventilation to reduce moisture. We recommend installing vents to provide one square foot of ventilation for every 150 square feet of crawlspace.

Keep watch on your foundation over time. Walk through the San Antonio distressed property monthly to look for any movement, such as sticking windows or creaky floors. Ensure drainage systems are clear and moving water away from your repaired foundation. DIY pier and beam foundation repairs are affordable, but doing them right requires proper tools, skill, and patience. Doing these repairs yourself will boost the ROI of your San Antonio under market value property – well done!

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Choose A Shady Contractor Suffer, Ye Shall

My blog readers might notice that I committed many real estate investing sins. I have learned lessons. Today, I travel the path of a reformed terrible real estate investor. I’m not half bad. I’ve had many successes after many failures. Here is another early failure.

I bought a distressed two-bedroom San Antonio investment property for $40,000 in 2008. It needed a new roof, siding, and major plumbing work, including a new plumbing line to the main line at the street. I chose a contracting company for the $25,000 rehab that a friend recommended.

A mistake, and one I made multiple times in my early distressed property investing career. Haste. I wanted to become a successful real estate investor, but I cut corners to reach my dream. I was impatient.

A sad fact about the real estate business is that many scammers are attracted to it like flies to…well, you know. The FTC reports 83,000 complaints about home renovations and improvements every year.

My contractor’s rehab work was subpar. After he completed the work, the ‘new’ roof leaked, the ‘new’ siding started to peel off after five weeks, and the ‘new’ plumbing system stopped up under the pier and beam foundation. A smelly mess ensued.

I knew one of the laborers the contractor hired on my house. He called me a month after they completed the work. Sad news, he told me. I paid over $10,000 for new materials for the roof and siding. But my friend told me the contractor had the workers grab old materials off piles of scrap in the alley. They used old shingles and older siding to rehab my San Antonio distressed property.

I don’t know what the contractor did with my $25,000, but it didn’t go toward new materials for my San Antonio investment property.

I had to pay another contractor $20,000 to redo the renovations. Eventually, the house became successful and provided steady rent to me for almost 10 years. However, it took five years to turn cash positive.

Lesson – Choose your San Antonio investment property contractors carefully. I recommend driving by the property every week during renovations. Watch your contractors and the quality of work they perform. Vet your contractors carefully. Check online reviews and call their references.

Last tip: Don’t be hasty in real estate investing. Success will come, but only with patience and discipline.

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Real Estate Market Slowdown Affecting San Antonio

If you work in San Antonio real estate, you know that the market is slowing down as of mid 2025. This could be the year to pick up more under market value San Antonio investment properties. Here’s what we know about the San Antonio real estate market as of May 2025:

Price Trends

San Antonio home prices are declining slightly from the year before. The average home price is between $263,000 and $288,000, down roughly 2% from 2024. Forecasts predict another 1% drop through the end of 2025. Median sale prices are between $256,000 and $311,000. Interestingly, smaller homes with one or two bedrooms are seeing more declining prices than larger homes.

Inventory Rising

San Antonio home inventories have increased, with up to 15,000 listings reported in 2025, an 11% rise over last year. This increase includes a 25% jump from pre-COVID levels and 10,600 homes listed last year. This increase in inventory is the highest since 2017. The home oversupply means buyers have more choices and power to negotiate. You could see a lower asking price if you are hunting for your next San Antonio investment property.

Market Dynamics

Redfin terms the San Antonio housing market as ‘somewhat competitive’ with homes selling in 50 to 80 days. San Antonio houses often sell 2% or 3% under the list price. About 34% of buyers are considering leaving San Antonio, which suggests cooling demand.

Interest Rates

Interest rates continue to pressure home and investment property buyers. As of May 2025, they were still near 7%, affecting affordability and decreasing buyer interest. The Fed has continued to resist lowering rates, and many think there won’t be significant changes in interest rates through 2025.

Sales Down

Close real estate sales are down, with 2,800 single-family houses sold in March, down 8% from the year before. However, existing-home sales across the US are forecast to rise 8% to 12% in 2025 as buyers digest the higher rates.

San Antonio Economic Factors

San Antonio’s relative affordability, 1.6% annual population growth, and job market strength are still driving demand. The city continues to appeal to families and professionals, but new construction is slowing. Only 8,600 single-family permits were issued in 2023, down 15% from the year before.

San Antonio Investment Property Opportunities

West San Antonio, Southtown, Tobin Hill, and Harlandale have strong rent yields of 6% to 8%. The median home price of $297,000 or so positions San Antonio as a more affordable option than Austin, Houston, and Dallas. Be sure to review our current San Antonio investment property located at 5222 Lark 78228.

Overall, the San Antonio real estate market in 2025 is cooling, with home prices slightly declining, surging inventory, and properties sitting unsold longer. For San Antonio under market value property buyers, this means more negotiating power, and potentially higher rent yields.

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San Antonio Neighborhood Profile – Culebra Park Area, 78228

San Antonio under-market-value property investors have many tempting choices when investing in our growing city! One of the areas we see as up and coming for San Antonio investment property buyers is the Culebra Park area in 78228. I’ve identified several aspects of this area contributing to its profitability for under-market-value buyers. These attributes attract potential home buyers and renters with good income and families. Let’s take a look!

And don’t forget: Check out our new under market value investment property at 5222 Lark for only $69,900 cash or hard money!

Amenities

First, the Culebra Park area in 78228 boasts several parks, including Acme Park, Rosedale Park, and Woodlawn Lake Park. Families have ample green spaces for themselves and the kids to jog, walk, play sports, and picnic. Woodlawn Park has playgrounds, a lake, and many walking trails. This area is easily walkable, and parks and green spaces help the family-focused feeling.

Bonus: The San Antonio River Walk is a short drive away!

Shopping and Dining

Home buyers and renters in San Antonio want ample shopping and dining without needing to drive far in our hectic traffic. In Culebra Park 78228, we have Ingram Park Mall and Alamo Ranch Shopping Center, so there’s a variety of highly rated restaurants, retail stores, movie theaters, etc. Plus, Walmart and Walgreens are easily accessible.

Cultural And Education

Education is important to parents, and St. Mary’s University and Our Lady of the Lake University are only a few minutes’ drive away. Also, community colleges are affordable in Texas, and this area offers Northwest Vista College and UT San Antonio.

Community And Lifestyle

Culebra Park enjoys a great reputation as family-friendly, peaceful, and welcoming. Residents have a strong sense of community ties, and many comment on the safety, quiet streets, and dog-friendly vibe. Also, this area is served by the Northside Independent School District, which is well regarded for its teacher quality and student experience.

Benefits For Homebuyers And Investors

The median real estate price in 78228 is $148,500, which is lower than 75% of other neighborhoods in Texas. So, the Culebra Park area is a good possibility for first-time buyers and under-market-value San Antonio investors who want affordable properties that appeal to growing families. Be sure to check out our current under market value property available at 5222 Lark, 78228!

Robust Marketing Demand

Real estate vacancies in the Culebra area are only 5.3%, so there is a significant desire for rental properties and lower-priced homes for purchase. This area is close to Highway 151 and Loop 1604, and Kelly Air Force Base and Lackland Air Force Base are just five or six miles away, which is good for many military workers. The average rent in 78228 is $1,430 per month, with three-bedroom apartments starting at $1,030.

To summarize, the Culebra Park area in 78228 in San Antonio is a growing area that is still affordable, making it an appealing option for San Antonio investment property buyers!

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House Prices Soaring In San Antonio in 2021

The spring selling season has started in San Antonio, and home buyers and investors looking for properties should expect to pay more, no matter if you’re buying a $50,000 under market value property or a $1 million mansion.

A recent study revealed the annual appreciation of homes in San Antonio is between 7-8% as of February, compared to a year ago.

Lower-priced homes in San Antonio saw an 8% rise, with a typical price of $153,000. For homes up to $226,000, the rate was 8%. Home values in more expensive homes above $366,000 grew 7.3%.

Also, the median price of sold homes in San Antonio increased 12% in March 2021 to $268,000, with the average of 45 days on the market, which is down 35% from last year.

We’re seen such an increase in prices this year that some worry we might be looking at a housing bubble like 2008. But this doesn’t seem likely; the conditions causing the increase this time are different, so we’re probably in for a steady rise for the foreseeable future.

Excess lending is largely what drove the 2006 and 2007 bubble. But lending standards are tighter now. Most buyers need higher FICO scores and down payments, and debt to income ratios are tighter.

Also, there still is a shortage of homes in San Antonio; the inventory dropped to only 1.3 months in March 2021. That’s well below the typical six month supply that is thought to be a good balance between buyers and sellers.

Another factor reducing supply – and this is something that should concern investors looking for San Antonio wholesale properties – is high material costs. Prices have tripled since 2020 with the average cost of a new San Antonio home almost $400,000.

Available land is scarce and more expensive, and the permitting process is taking longer.

More people are moving into Texas from more expensive areas, drawn to the lower real estate and living costs. Real estate investors are buying up a lot of under market value real estate properties in San Antonio, too. This increases prices.

But while you will pay more for San Antonio wholesale properties, you can charge a higher price when you owner finance or rent it.

Here at Texascashflow.com, we’re currently searching for new deals that meet our criteria. Don’t worry – we’ll have our listings updated soon with more fantastic wholesale investment properties.

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Converting Investors’ Rentals to Owner Finance Was the Best Decision Ever

Before the market crash, two of our biggest investors owned more than 100 rental properties. Like many investors, they once thought that owning rental properties was the only way to make money in real estate investing.

What they found was that they were often dealing with repair problems.  It didn’t matter that they had property managers. When you own 100 houses, you always have to deal with a repair, a late bill, a vacancy, paperwork and so on.

They also found it was hard to know what their cash flow on each house was each month. Writing checks for new water heaters and fridges gets old fast!

It was around 2009 that one of our investors’ mentors talked to them about switching to owner finance so they could retire with millions in real estate. That mentor only did owner finance homes.

Rather than being a landlord responsible for property upkeep and repairs, there are more efficient ways to generate monthly cash flow.

Be the Bank!

Think about your own house. Each month you send an electronic payment (or check) to your mortgage company or bank. Your bank doesn’t have to maintain the property – you do. Since you are buying the property from the bank on terms, it is natural to your benefit to maintain the property. The bank knows that statistically, homeowners are much more likely to keep their houses in good repair than renters. That’s what makes holding mortgage notes so attractive.

Our mentor taught our investors they could be the bank for people who do not have the credit history to qualify for a regular mortgage loan. The investor carries the loan on the distressed property for 30 years just like the bank, and the new owner of the house simply pays a mortgage payment each month that includes taxes and insurance.

The mentor said to our investors –  why should you spend $10s of thousands on rehabbing a property when you can have the end buyer do most of it? Owner finance investment property is smart.

The end buyer usually has a vested interest in maintaining their property, as they own it.

How a Typical Owner Finance Property Deal Looks:

$62,000 cash purchase, $10,000 rehab, 50 DOM, sold for $89,900 owner finance, $937 per month, 12.3% ROI.

This 3 BR 1.5 bath property investment with positive cash flow north of downtown San Antonio TX is in a heavily revitalizing area. It was bought by the investor for $62,000.

The under-market value property only needed approximately $10,000 of rehab, including new flooring, paint in and out, and minor foundation work.

The total project cost to the investor for this under-market value property was $72,000.

Within 50 days of the completion of rehab, it was sold with owner financing with the following terms:

  • $5000 down
  • $89,900 final price
  • 10% interest
  • 30 year note
  • $937/month PITI positive cash flow
  • Cap rate 12.3%

After our investors converted most of their under-market value properties to owner finance, most of of their worries about properties disappeared. The owner maintains it and the investors simply enjoy the monthly cash flow from each property into their bank accounts.

Most people don’t seem to ever consider owner financing their property investment, probably because they don’t know about it.

The keys to success in owner finance property are simple:

  • Carefully documenting the income of the potential buyer and verifying their work history
  • Follow the Dodd Frank law, which mandates that you must collect proof of their income and document their work history.
  • You can have a Texas licensed loan originator do this for you for a $750 or so fee (we have one on staff).

The bottom line on owner finance investment property is you enjoy cash flow without maintenance and the buyer enjoys buying their own home at last – a true win-win for everyone.

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How Our Investors Buy Investment Properties in Texas Below Market Value

The most important factor in our big investors’ success in buying the best San Antonio investment property is every house they buy is under market value. That is, they buy under market investment properties that need rehab.

How To Determine Market Value

One of the biggest reasons many investors we have become real estate agents is so they can determine market value of the best below market value San Antonio investment property on their own. It is never a good idea to use Zillow to determine market value of a property. Zillow is notoriously off base, especially when you are dealing with off market properties or an out of state investment property that are not in the MLS.

Also, bear carefully in mind that the value that you come up with will largely depend upon the repairs your under market value properties need. Our investors like buy properties that are at least 20% under market value. So if the house is worth $90,000 and needs $25,000 in rehab, buying the house at $115,000 is a waste of time and money. They want to buy that house for at least 20% under $90,000, or about $72,000, so they can make a good profit.

How Investors Buy Under Market Value Properties

There are several ways that our investors use to buy under market value properties in San Antonio TX, one of the best cities to invest in real estate:

  • Buying fair market sale houses: These are houses that are owned by a private person who has equity in the house and there is no bank involved. Most of these sellers are in no rush to sell, so this can be tough. But our investors have bought many under-market value properties in estate sales; that is where they find most of their deals. In many cases,  there are several children involved and they just want to be rid of the house that needs repair.
  • Buy off market properties: Given our investors’ level of success in real estate investing, they tend to find many good deals that are not in the MLS. Agents and investors in the business send our site and top investors below-market deals. Of course, you need to get experience in the business to work this way, but know that if you do become successful, good deals often find you. We currently are analyzing several below market value properties that we will post on this site soon.
  • Buy REOs under market value: These are Real Estate Owned properties, and these are houses that the banks have foreclosed on. REOs are usually in the MLS, and some of them will be repaired and some will not. Of course, REOs are tougher to find now and many of them need a lot of work. To make your offer more attractive, you may want to tell the seller you don’t need to do an inspection. Pay all cash if you can – cash is king!
  • However you buy your under-market value investment property or out-of-state investment property, do not spend too much money on the rehab. Rehabs are where many investors lose their rears. Spend too much on your rehab and you will never make any money. Our top investors own a construction company and are able to do rehabs for 50% less than most contractors on the best San Antonio investment properties.

That in short is how our investors buy below-market value properties in Texas. The big thing to remember is to stick to your guns on your numbers – if you need to buy that house 20% under market value to make money, don’t go over it. Move on to the next under-market value property deal if you have to – there are lots of them out there!

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FOR SALE OFF MARKET – 5222 Lark 78228!


Investors!

We have a 100% off-market property available in the growing community of Culebra Park in 78228! Below is the full listing as of April 26, 2025!

Booming real estate investing location! We offer this 4-bedroom, 2-bath San Antonio fixer-upper west of Saint Mary’s University!

Address: 5222 Lark, San Antonio Texas 78228, 

Type: 4 beds 2 bath, estimated 1488 sqft, built: 1948, lot size: .172 acres (large front/back lawn). 

Price: $64,900 cash or hard money

ARV: Estimated ARV: Low is $199,000, high is $299,000 with owner financing

Tax Value: $177,000

Rehab: Estimated rehab 75K: foundation, roof, plumbing, electrical, kitchen/bath update, flooring, sheetrock/texture, paint, windows, landscaping.

Exit Strategy: – Owner finance or rent for a fantastic buy and hold!

Comps: 5222 Lark

Contact: Text Joseph Pickett – (210) 421-7533, or use our contact form!

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SOLD – 4547 Guadalajara Dr. San Antonio, TX 78233

 

Address: 4547 Guadalajara Dr. San Antonio, TX 78233

Description: Location Location!  Fully renovated, turnkey San Antonio investment property! Prime time area.  3 beds 2 bath, 1154 sqft, lot size: .14 acres, school district: North East ISD, central heat and cold air, new roof gas stove, tile floor.

Price: 139K. Rents $1395 per month.

Notes: Property will be rented, and there is a three-year warranty for plumbing and electrical work.

Contact us today to make an offer – 210 865 0742.

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