Real Estate Investing Performance In New Braunfels
If financing is a problem for you, we are more than happy to recommend conventional lenders who can help you pay for the property. To ensure that the process is a breeze for you, we recommend going through the available options as early as possible.
The table below summarizes what you can expect from an investment in the area.
| Avg Purchase Price | Avg Cap Rate | Avg Cash on Cash Return | Avg Cash Needed to close | |
|---|---|---|---|---|
| Commercial 5+ units LTR | na | na | na | na |
| Short Term Rental (SFH) | 250k - 450k | 9% - 10% | 10% - 14% | $90,000 (furnished) |
| STR (2-4 Units) | 200k - 250k per door | 10% - 12% | 12% - 15% | $60,000 per door (furnished) |
| Long Term Rental (2-4 Units) | 150k - 200k per door | 6.5% - 8% | 6% - 8% | $40,000 per door |
| Long Term Rental (SFH) | 275k - 325k | 3% - 6% | 4% - 5% | $65,000 |
| Househack (2-4 Units) | 150k - 200k per door | n/a | n/a | $9,000 per door |
| Househack (SFH) | 275k - 375k | n/a | n/a | $15,000 |
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Investment Tips for New Braunfels Real Estate
Some of the sweet spots for investors will be Oak Creek, Quail Valley, Alves Lane, Caprock, and Wendover Farms. Avery Park is going to be one of the most desirable areas for rentals if you can find them.
“The Hill” neighborhoods are excellent for high occupancy rates, and while there is no definitive boundary of “The Hill” communities, a rough outline will be Landa Park, Oakwood estates, and the homes surrounding Panther Canyon, then into Mission Oaks
All these are areas that have recorded a sudden surge in population over the last decade. But before investing, you should note that the local communities are a bit different from what you would expect in other Texas cities.
One area this is apparent is in the local landlord-tenant laws. Make sure you’re well-versed with the pertinent ordinances before you can begin running a rental property. Familiarizing yourself with the laws early helps you to avoid unwanted issues with the tenants down the road.
Main Activities/Attractions of the New Braunfels Area
New Braunfels sits right in the heart of the San Antonio-Austin corridor and gives great access to I35 and I10, making it a favorite location for distribution/ logistics companies and manufacturing operations.
The city is home to one of the most popular water parks in the world (Schlitterbahn New Braunfels), a thriving tourism industry with its unique German heritage, historic Texas dance halls, and beautiful downtown.
The New Braunfels community attracts thousands of visitors daily to their two spring-fed river systems, the Comal River and the Guadalupe River. Floating along the river in an innertube is a central Texas staple, and a huge short-term rental economy thrives in support of the tubing industry.
And there’s more to do in the city than visiting the waterpark or hanging out by the river. Residents and visitors can easily find activities that allow for much-needed me time, gatherings with friends, or plain old family outings.
Examples of these include hiking Panther Canyon Nature Trail, paddle boating along Landa Park, or scheduling a visit to the Arboretum to marvel at its stunning flora. Those who want to explore further can always head to the Historic Districts for even more exploration.
As seen here, there are many things to see and do in New Braunfels. The exciting amenities present in the city have a direct impact on its investment potential, as tenants are more likely to live in a place offering a wonderful life–work balance.
Everyone needs variety and entertainment in their lives. New Braunfels has proven that it can meet that expectation, and all that remains is for you to choose the right rental properties to invest in and wait for the returns to begin rolling in.
Success stories investing in this area
“Used Victor in finding and purchasing my first investment property. Victor and his team were knowledgeable in providing help along the way especially toward the end while getting everything squared away.”
Logan Hicks
Long Term Rental
Victor was an awesome realtor! We were first time investors in Texas and he was very responsive, experienced, and pleasant. Every question we had he answered promptly and from start to finish Victor guided us thorough the whole process and made the buying transaction as smooth as possible for us! You will not be disappointed by working with Victor Steffen, thank you Victor!
Janeth Quintero
Long Term Rental
Investment Strategies for the New Braunfels Area
New construction is popping up all over the New Braunfels market, and most builders do reserve some inventory for investors. You can pick up new construction deals here that break even or even cash flow positive slightly from day 1.
Another strategy that works well is catering to short-term renters. The area attracts thousands of visitors to its dance halls, downtown, and river float trips. With such a market, you’re assured of tenants around the year, regardless of the season.
You may also want to consider buying property near the major employers in the area. Today, the city boasts of a healthy job market that has helped sustain a solid demand for rental properties.
An example of some of the top employers in New Braunfels is the Walmart Distribution Center, HD Supply, Comal Independent School District, Schlitterbahn, Colorado Materials, and Rush Enterprises.
Last but not least, the city has witnessed a growing interest in its neighborhoods, with some people choosing to live in New Braunfels but commuting to their places of work daily. These are some of the people that have helped it develop a vibrant rental market.
The same group has also helped it become a bedroom of sorts by allowing them to live within its perimeters but make a short commute to Austin or San Antonio every morning. These are some of the people you can target with your rental property.
Is New Braunfels a Good Real Estate Investment?
New Braunfels, Texas is a growing city with a thriving real estate market, and there are several reasons why it’s a great real estate market to invest in.
Strong economy: New Braunfels has a strong and diversified economy, with a growing number of businesses and job opportunities in industries such as healthcare, education, and tourism. This has helped to drive demand for housing in the city, making it an attractive market for real estate investment. The housing market in New Braunfels, Texas has been growing and evolving over the last 10 years, reflecting the city’s growing popularity as a place to live and work. According to data from Zillow, the median home value in New Braunfels was $299,000 in February 2021, which is up from $197,000 in February 2011, representing an increase of over 50% during that time period.
Growing population: New Braunfels has experienced significant population growth over the last several years, as more and more people are drawn to the city’s high quality of life, affordable housing, and convenient location in the Texas Hill Country. This growing population has helped to increase demand for housing in the city, making it a good time to invest in real estate. According to data from the United States Census Bureau, the population of New Braunfels was 68,794 in 2010, and had increased to 81,793 in 2020, representing an increase of nearly 19% over that time period. This population growth has been driven by a number of factors, including the city’s strong and diversified economy, high quality of life, and affordable housing.
Affordable housing: Compared to other cities in the region, New Braunfels offers relatively affordable housing, making it an attractive option for people seeking an affordable place to live. This affordability can help to make investing in real estate in New Braunfels more accessible for a wider range of investors.
Strong rental demand: New Braunfels is a popular tourist destination, and the city’s growing population and strong economy have helped to create strong demand for rental properties. This can make investing in rental properties in New Braunfels a good opportunity for investors looking to generate passive income.
Is it a Good Time to Invest in New Braunfels?
Right now is an excellent time to invest in New Braunfels Texas.
New Braunfels, Texas has experienced a number of developments over the last 5 years that have helped to further grow and diversify the city’s economy. Here are a few of the most notable developments and major employers that have moved into the area:
Growing healthcare sector: New Braunfels has experienced significant growth in its healthcare sector over the last 5 years, with a number of new healthcare facilities and providers moving into the area. This has helped to create jobs and improve access to healthcare for residents.
Expansion of tourism industry: New Braunfels is a popular tourist destination, and the city’s tourism industry has continued to grow over the last 5 years, with the addition of new attractions, hotels, and restaurants. This has helped to create jobs and stimulate economic growth in the area. Here are a few of the most popular tourism attractions in New Braunfels:
Schlitterbahn Water Park: Schlitterbahn Water Park is one of the most popular attractions in New Braunfels, offering a range of water-based activities, including slides, wave pools, and lazy rivers.
Landa Park: Landa Park is a large park located in New Braunfels, offering a range of outdoor activities, including hiking and biking trails, picnic areas, and a spring-fed pool.
Comal River: The Comal River is a popular destination for tubing, swimming, and fishing, and is considered one of the clearest rivers in Texas.
New Braunfels Farmers Market: The New Braunfels Farmers Market is a weekly market that features a range of local vendors selling fresh produce, baked goods, and handmade crafts.
Gruene Historic District: The Gruene Historic District is a historic neighborhood located in New Braunfels, offering a range of shopping, dining, and entertainment options, as well as a number of historic buildings and homes.
Growth of technology and innovation sector: New Braunfels has also seen growth in its technology and innovation sector over the last 5 years, with a number of startups and technology companies moving into the area. This has helped to create high-paying jobs and further diversify the city’s economy.
As for major employers that have moved into the New Braunfels area over the last 5 years, a number of large corporations have established a presence in the city, including H-E-B Grocery, Amazon, and FedEx. Additionally, the city’s growing healthcare and tourism sectors have helped to create a number of new jobs in the area.
Best Neighbourhoods to Invest in New Braunfels
The most desirable neighborhoods in New Braunfels, Texas can vary based on a number of factors, including location, proximity to amenities, and home prices. Some of the most popular and sought-after neighborhoods in New Braunfels include:
Gruene
Gruene is a historic neighborhood located in the heart of New Braunfels, offering a range of shopping, dining, and entertainment options, as well as a number of historic buildings and homes.
Creekside at Gruene
Creekside at Gruene is a newer neighborhood located near the Gruene Historic District, offering a range of newer homes and amenities, including parks, trails, and a community pool.
Comal Heights
Comal Heights is a neighborhood located in the hills above New Braunfels, offering scenic views, spacious homes, and a convenient location near amenities and attractions.
As for the most affordable neighborhoods in New Braunfels for real estate investors, some of the more budget-friendly areas in the city include:
Walnut Springs
Walnut Springs is a neighborhood located in the northern part of New Braunfels, offering more affordable homes and a convenient location near amenities and attractions.
River Chase
River Chase is a neighborhood located in the southern part of New Braunfels, offering more affordable homes and a convenient location near amenities and attractions.
Garden Ridge
Garden Ridge is a neighborhood located just outside of New Braunfels, offering more affordable homes and a convenient location near amenities and attractions.
Financing Information for New Braunfels Real Estate Investors
If you’re looking for financing, you’ll be glad to learn that JJVM can finance owner-occupied loans for single-family or house hackers’ investments. Such a loan will attract a 20% down payment.
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