Whether you’re already an investor in San Antonio’s real estate market, or you’re ready to make a move, you need to be able to identify the best possible investment opportunities. Determining the value and return on investment of any property can be a daunting task. If you overpay, it takes a long time for your investment to yield positive results. Hopefully, with a few guidelines, you can choose the best San Antonio investment properties available.
San Antonio is a Great Place to Invest
First of all, you’re not limited to purchasing real estate in the San Antonio area. Property management companies allow you the freedom to own property nationwide without having to be present for your endless landlord duties. Nevertheless, San Antonio has been and continues to be an excellent location for real estate investment, despite the confusion and uncertainty recently unleashed by COVID-19.
People continue to need a dwelling to live in, and the same dynamics that made San Antonio such a coveted location for living and working shouldn’t suffer from this global pandemic. Richly endowed in both history and culture, San Antonio has something to offer to almost everyone. It’s wonderfully diverse, and nearly everyone can feel at home.
Boasting a population of 1.3 million, San Antonio became the nation’s fastest-growing large city between 2015-16. Mild winters, a growing economy, and an affordable cost of living make San Antonio a desirable destination for young professionals determined to pursue the American dream. Patient investors with a vision are poised to reap long-term rewards in one of America’s most dynamic markets.
Look for Undervalued Properties
When seeking the right investment properties, focus your attention on the eventual ROI. Don’t look at a property in how it appeals to you. The most lucrative investments usually look shabby and need work. Their lack of aesthetic appeal lowers their attractiveness and their current market value. Use some of the money you save on the purchase price to rehabilitate your diamond in the rough.
However, be careful not to overspend on repairs and improvements. A lot of otherwise smart investors go overboard in trying to add value to their investment. Before spending your hard-earned money on the property, calculate the return it can provide. If the math doesn’t add up to positive cash flow in a reasonable amount of time, don’t invest your capital in the improvement.
Avoid Multiple Listing Service Listings (MLS)
Agencies such as Zillow are often unreliable sources of information for housing market value. While it can take a long time to develop an independent understanding of the San Antonio housing market, you won’t typically find the most undervalued properties on the listing services. Seek out houses that are owned by private individuals with equity in it and no bank involvement.
Estate sales can also provide superior values, especially when there are several children involved who wish to sell quickly. Real Estate Owned (REO) properties are houses on which a bank has foreclosed. Though MLS usually post REOs, sometimes, you have to search for them. If the house needs a lot of work, the bank might be willing to negotiate. Banks prefer cash sales in these situations, so use it if you have it.
Less Fashionable Areas Can Provide Better Returns
Unless you take pride in the location of your investment properties, less fashionable areas can often provide superior returns. Renters are less picky than buyers about their zip code, so the rental income to purchase price ratio favors the astute investor in a less prestigious neighborhood.
San Antonio has rewarded investors and landlords for years. It’s a growing metropolitan area with a high quality of life. While the current environment remains uncertain, the fundamentals of real estate investing stay the same. Buying undervalued investment properties has long been the road to financial independence.
