Is there anyone investing in the San Antonio, Texas area? If so what areas?
Please provide your pros and cons also. Thanks.
i was looking to invest in San Antonio but the numbers are unimpressive.
first they have 3% property tax. then they have mold issues so insurance rates are
high.
Texas as a state has seen 89% appreciation over the past 25 years which isn’t even
beating inflation.
take almost any city in texas. the land is so flat you can build in any direction for 50 miles without issue. this means there’s nothing to constrain the growth and keep a pressure on the land prices. thats why land is soooo cheap in texas.
on top of that it’ll take about 2 months to find a tenant [according to the property mngrs i asked]. also you can’t buy too big a house. if its above 1700 sq ft, 2 things happen
- most people can’t afford the electricity
- those that can, usually move out in 6 months and buy their own place.
so you’ll end up buying a 125k house, see 3% appreciation, and your cashflow is eaten up by the high property tax, insurance and maintenance.
whats the frickin point???
I guess there isn’t if you have your mind made up. You will have to leave it to the locals to find property undervalued that they can resell and make a profit. Or because it is undermarket take the cash flow or wait for the double digit appreciation again.
That may be better than investing in coastal states or hot areas that can burst and go down in value 30% in a short time.
If you have cash you can do hard money lending in any state if 18% isn’t to low for you.
Those properties that I bought in San Antonio in the early 90’s I am now selling for double and triple their value. My returns on income were at least 20% and since many of then are in an IRA I guess I will continue to get an interest free loan on the profits for as long as I want.
as far as i know, property values haven’t gone up double and triple in SA. did you buy foreclosure or do rehabs?
What type of appreciation have the coastal areas of TX done, I am assuming the CC area?