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San Antonio Real Estate Investment

If you use Google Maps to check out the San Antonio area, you’ll first notice that there are two main highway loops circling its downtown area. The inner loop has the 410, with the outer loop having the 1604 highway.

Another important geographic marker you may want to remember is the I35 which runs from the northeast corner of the city going all the way to Austin, located about an hour’s drive away. While at it, you’ll also see the third marker in the form of Highway 10/ route 90.

Many investors tend to prefer neighborhoods that lie between the 410 and 1604 loops. Others prefer those that are north of Highway 10/ route 90. An aerial look at our target locations shows them forming a rainbow shape over San Antonio.

Our recommendations vary depending on your preferred asset type and investment location. However, most of the investors we have dealt with have ended up buying rental properties within the downtown area or directly to its east. This is something we will discuss during our call.

Arial view of a district in San Antonio Texas

Real Estate Investing Performance In San Antonio

Any of our conventional lenders can help in San Antonio. You will also notice a larger number of owner-financing options in this market. Below is a table providing a detailed breakdown of what to expect when it comes to San Antonio rental properties.

Avg Purchase Price Avg Cap Rate Avg Cash on Cash Return Avg Cash Needed to close
Commercial 5+ units LTR 125k - 200k per door 4% - 7% 0%-5% (assumes 25% down payment) $45,000 per door
Short Term Rental (SFH) 350k - 550k 7% - 9% 8% - 12% $92,500 (furnished)
STR (2-4 Units) 175k - 225k per door 8% - 10% 9% - 13% $51,500 per door (furnished)
Long Term Rental (2-4 Units) 150k - 200k per door 3% - 5% 0% - 5% $48,000 per door
Long Term Rental (SFH) 275k - 350k 0% - 4% 0% - 4% $71,500
Househack (2-4 Units) 150k - 200k per door n/a n/a $12,250 per door
Househack (SFH) 300k - 400k n/a n/a $17,500
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Investment Tips for San Antonio Real Estate

Some of the hotspots you should target include those sitting to the northern and western areas of the Lackland Airforce base, located on the western side of the metro. This is where you can expect to find new construction single-family homes and great opportunities for rentals.

Many of the rentals located here are short- and mid-term rentals. Moving on, you may also want to consider the medical district situated on the northwest side of downtown, which is home to some of the largest employers in San Antonio, e.g., USAA (20,000 employees).

Another factor that makes it a hot target is the number of health service providers, hospitals, and clinics scattered across the campuses in the area. Its variety of employers and close proximity to downtown make it a favorite with most tenants.

When giving you tips on investing in San Antonio real estate, we would be remiss if we failed to mention the huge military presence in the city. Fort Sam Houston is a staple of the local economy, and you can do well to provide active-duty personnel with affordable housing.

As far as the schooling system goes, the best and highest-rated school systems are found directly north of downtown, Timberwood Park, and Alamo Heights. If you drive north along 281, you’ll come across great investment opportunities coupled with long-term tenant bases.

Main Activities/Attractions in San Antonio

San Antonio has all the six major tenant draws we consider when recommending an investment market. For starters, the city feels undervalued compared to its neighbors, given that it’s yet to experience a double-digit run in its appreciation rate.

Here, you’ll find an established military base, major universities, a major medical district, an international airport, Fortune 500 companies, and a vibrant downtown tourism industry. Examples of local universities are:

  1. University of San Antonio
  2. St. Mary’s University
  3. Trinity University
  4. San Antonio College

Combined, these four universities support 60,000+ undergraduate and graduate-level students. Moving on, we have the Lackland Airforce Base and Fort Sam Houston, which support 36,000 active duty personnel, 48,000 family members, and 76,000 retirees.

Additionally, there are 39,000 airmen who graduate from BMT each year and who have to stay in San Antonio, as JBSA-Lackland is the only site approved for basic training. Each week, 800 airmen and their families participate in graduation ceremonies at the facility!

The San Antonio International Airport is another top attraction that witnesses 250+ departures per day from its 24 gates. It serves as a home to 12 different airlines servicing Mexico and 53 other domestic locations.

Before the onset of the pandemic, the San Antonio International Airport served up to 10 million travelers annually. However, this number fell to around 4 million travelers at the height of the pandemic , and then rose to 7.5 million by the end of 2021.

It’s expected that the previous record of 10 million travelers will be surpassed in 2022.

When it comes to tourism matters, Downtown San Antonio easily takes up the mantle. All this is thanks to the area surrounding The Pearl District having experienced accelerated development in recent years. It boasts a vibrant nightlife, mixed-use development, historic hotels, and restaurants.

As you head to the northwest part of the city, you’ll find several healthcare providers, clinics, and hospital systems, with nearly 50,000 workers traveling here daily. Many of these work in the local medical campuses.

Last but not least is the San Antonio corporate presence, which has managed to attract revered employers such as Rush Enterprises, USAA, and Valero Energy. Other major employers include HEB and JBSA, which we mentioned earlier.

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.”

Investor

Logan Hicks

Strategy

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!

Investor

Janeth Quintero

Strategy

Long Term Rental

San Antonio Real Estate Investment Strategies

Image showing cars parked on the street in a San Antonio neighborhood

Every real estate market out there comes with varied management strategies, hotspots, and asset types. The one thing they all have in common is the fact that they all play to the strengths of the local community.

In the case of San Antonio, the most prevalent economies are universities, the military, and healthcare providers. As a result, mid-term rental strategies tend to do best in this town, which is why we recommend buying multi-family (2-4 doors) properties.

Such an investment will allow you to cater to the needs of seasonal and contract workers who are in large supply. Single Family Rentals also do quite well and are in great demand in the communities surrounding Barkey Springs and Luckey Ranch.

 

Is San Antonio a Good Real Estate Investment?

San Antonio, Texas, is considered a good market for real estate investors for several reasons, including:

Growing Population: San Antonio has experienced significant population growth in recent years, and is projected to continue to grow in the future. This growing population has created a strong demand for housing, and has helped to support the local real estate market. As of 2021, the estimated population of San Antonio is over 1.5 million people, making it the second largest city in Texas and the seventh largest city in the United States.

Affordability: San Antonio is known for its relatively affordable housing options compared to other major cities in the United States, making it an attractive option for first-time homebuyers, families, and real estate investors. According to Zillow, the median home value in San Antonio was approximately $205,000 in February 2023, which represents a significant increase from the median home value of around $151,000 in 2013. However, it’s important to note that home prices can vary widely depending on the location and type of property, so it’s best to research specific neighborhoods and properties in more detail to get a better understanding of the local market.

Strong Economy: San Antonio has a diverse economy, with a significant presence in healthcare, military, tourism, and technology. This strong economy has helped to create jobs and drive population growth, which in turn has helped to support demand for housing. Some of the largest employers in the city include:

USAA – a financial services company that provides insurance, banking, investment, and retirement products and services to military families and veterans. USAA was founded in 1922 and employs over 30,000 people in San Antonio.

H-E-B – a retail grocery chain that was founded in 1905. H-E-B is the largest private employer in Texas, with over 100,000 employees, including thousands in San Antonio.

UT Health San Antonio – a public health university that was established in 1959. UT Health San Antonio employs over 11,000 people, making it one of the largest employers in the city.

Bexar County – the county government of Bexar County, which includes San Antonio. Bexar County employs over 9,000 people in a variety of roles, from public safety to healthcare to administration.

Rackspace – a cloud computing company that was founded in 1998. Rackspace employs over 6,000 people in San Antonio, making it one of the largest technology employers in the city.

Proximity to Major Cities: San Antonio is located in central Texas and is within a few hours’ drive of major cities like Austin and Houston. This proximity to these major cities, combined with its strong local economy and relatively affordable housing options, makes San Antonio an attractive place to live, work, and invest. Some of the larger and more well-known communities within San Antonio include Alamo Heights, Terrell Hills, Stone Oak, and the North Central area, which includes neighborhoods such as Olmos Park, Castle Hills, and Balcones Heights. Other notable communities in San Antonio include Helotes, Boerne, New Braunfels, and Seguin. Each of these communities has its own unique history, attractions, and amenities, and they offer a diverse range of housing options, from single-family homes to apartments and townhouses. Additionally, San Antonio is surrounded by many smaller cities and towns, such as Schertz, Live Oak, Converse, and Universal City, that offer their own unique amenities and attractions.

 

Is it a Good Time to Invest in San Antonio?

It is a great time to invest in San Antonio real estate!

San Antonio, Texas has seen many new and exciting developments in recent years that have impacted the real estate market. Some of these developments include:

The expansion of the city’s downtown area, with new high-rise residential and commercial buildings being constructed, providing more housing options and job opportunities in the city center.

The creation of the San Antonio River Walk, which has helped to revitalize the city’s downtown area and provide new recreational opportunities for residents and visitors.

The growth of the city’s technology sector, with major tech companies such as Rackspace, Google, and Amazon establishing offices in the city.

The development of new master-planned communities, including Alamo Ranch and Stone Oak, which offer a mix of residential, commercial, and recreational facilities.

The opening of new shopping centers, such as the Shops at La Cantera, which provide residents with more shopping and dining options.

 

Best Neighbourhoods to Invest in San Antonio

The most popular neighborhoods in San Antonio, Texas with good schools can vary based on a number of factors, including location, proximity to amenities, schools, and home prices. However, some of the neighborhoods in San Antonio that are considered to have good schools and are popular with families include:

Alamo Heights

Alamo Heights is a neighborhood located near downtown San Antonio, offering a range of homes, parks, and a convenient location near amenities and attractions, as well as several highly rated schools.

Stone Oak

Stone Oak is a master-planned community located in the northern part of San Antonio, offering a range of homes, parks, and a convenient location near amenities and attractions, as well as several highly rated schools.

Terrell Hills

Terrell Hills is a neighborhood located near downtown San Antonio, offering a range of homes, parks, and a convenient location near amenities and attractions, as well as several highly rated schools.

North West Crossing

North West Crossing is a master-planned community located in the northwestern part of San Antonio, offering a range of homes, parks, and a convenient location near amenities and attractions, as well as several highly rated schools.

Olmos Park

Olmos Park is a neighborhood located near downtown San Antonio, offering a range of homes, parks, and a convenient location near amenities and attractions, as well as several highly rated schools.

Lackland Terrace

Lackland Terrace is a neighborhood located in the southwestern part of San Antonio, offering a range of affordable homes and a convenient location near Lackland Air Force Base and SeaWorld San Antonio.

Harlandale

Harlandale is a neighborhood located in the southern part of San Antonio, offering a range of affordable homes and a convenient location near downtown San Antonio and the San Antonio International Airport.

Government Hill

Government Hill is a neighborhood located near downtown San Antonio, offering a range of affordable homes and a convenient location near amenities and attractions, such as the San Antonio River Walk, the Alamo, and the Pearl District.

 

Financing Information for San Antonio 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.

Positive Cashflow in Appreciating Markets

Ready to invest in central Texas real estate?

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Frequently asked questions

Is San Antonio a Good Real Estate Investment?
San Antonio, Texas, is considered a good market for real estate investors for several reasons, including: Growing Population: San Antonio has experienced significant population growth in recent years, and is projected to continue to grow in the future. This growing population has created a strong demand for housing, and has helped to support the local real estate market. As of 2021, the estimated population of San Antonio is over 1.5 million people, making it the second largest city in Texas and the seventh largest city in the United States. Affordability: San Antonio is known for its relatively affordable housing options compared to other major cities in the United States, making it an attractive option for first-time homebuyers, families, and real estate investors. According to Zillow, the median home value in San Antonio was approximately $205,000 in February 2023, which represents a significant increase from the median home value of around $151,000 in 2013. However, it's important to note that home prices can vary widely depending on the location and type of property, so it's best to research specific neighborhoods and properties in more detail to get a better understanding of the local market. Strong Economy: San Antonio has a diverse economy, with a significant presence in healthcare, military, tourism, and technology. This strong economy has helped to create jobs and drive population growth, which in turn has helped to support demand for housing. Some of the largest employers in the city include: USAA - a financial services company that provides insurance, banking, investment, and retirement products and services to military families and veterans. USAA was founded in 1922 and employs over 30,000 people in San Antonio. H-E-B - a retail grocery chain that was founded in 1905. H-E-B is the largest private employer in Texas, with over 100,000 employees, including thousands in San Antonio. UT Health San Antonio - a public health university that was established in 1959. UT Health San Antonio employs over 11,000 people, making it one of the largest employers in the city. Bexar County - the county government of Bexar County, which includes San Antonio. Bexar County employs over 9,000 people in a variety of roles, from public safety to healthcare to administration. Rackspace - a cloud computing company that was founded in 1998. Rackspace employs over 6,000 people in San Antonio, making it one of the largest technology employers in the city. Proximity to Major Cities: San Antonio is located in central Texas and is within a few hours' drive of major cities like Austin and Houston. This proximity to these major cities, combined with its strong local economy and relatively affordable housing options, makes San Antonio an attractive place to live, work, and invest. Some of the larger and more well-known communities within San Antonio include Alamo Heights, Terrell Hills, Stone Oak, and the North Central area, which includes neighborhoods such as Olmos Park, Castle Hills, and Balcones Heights. Other notable communities in San Antonio include Helotes, Boerne, New Braunfels, and Seguin. Each of these communities has its own unique history, attractions, and amenities, and they offer a diverse range of housing options, from single-family homes to apartments and townhouses. Additionally, San Antonio is surrounded by many smaller cities and towns, such as Schertz, Live Oak, Converse, and Universal City, that offer their own unique amenities and attractions.
Is it a Good Time to Invest in San Antonio?
It is a great time to invest in San Antonio real estate! San Antonio, Texas has seen many new and exciting developments in recent years that have impacted the real estate market. Some of these developments include: The expansion of the city's downtown area, with new high-rise residential and commercial buildings being constructed, providing more housing options and job opportunities in the city center. The creation of the San Antonio River Walk, which has helped to revitalize the city's downtown area and provide new recreational opportunities for residents and visitors. The growth of the city's technology sector, with major tech companies such as Rackspace, Google, and Amazon establishing offices in the city. The development of new master-planned communities, including Alamo Ranch and Stone Oak, which offer a mix of residential, commercial, and recreational facilities. The opening of new shopping centers, such as the Shops at La Cantera, which provide residents with more shopping and dining options.
Positive Cashflow in Appreciating Markets

Ready to invest in central San Antonio real estate?

Schedule a call