Your Daily Dose Of Knowledge! November 19, 2024 - #203

Today's New Post - Real Estate - Stock Market - Start Your Business - Boost Your Knowledge - More

Welcome Back,

Hi there, today we are back discussing another potential real estate market to invest in. We will also talk about the deal of the day and go into all the details you need to determine if the market is right for you. Enjoy!

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Real Estate Investing

Market Snapshot:

San Antonio, Texas
The San Antonio real estate market continues to show resilience and growth, with the median home price currently at $301,000, down 0.4% year-over-year. Active listings have surged by 9% YoY, offering buyers more options in this increasingly competitive market. San Antonio’s economy benefits from strong military, healthcare, and tech industries, drawing in new residents. Additionally, the city’s cost of living remains 14% below the national average, making it an attractive option for first-time homebuyers and investors alike. However, higher interest rates are slightly slowing sales in higher price brackets.

Median Home Price: $301,000
YoY Price Growth: -0.4%
Active Listings: 8,400 (up 9% YoY)

Deal Of The Day:

Multifamily Complex in San Antonio, TX
Price: $1,200,000
Units: 8(2-Bed, 2-Bath)
Monthly Rental Income: $11,200
Cap Rate: 8.7%

This 8-unit multifamily property, situated near Longhorn, offers strong cash flow with room for rental growth. The area has a decently high demand, not nearly as much as downtown San Antonio, but shows great future growth. This property brings in an annual rental income of $134,400. This property shows great potential for either a fix and flip or fix and hold.

Deal Rating: 8/10

This property right off the bat is a pretty great deal. The only downside I can see with this property is the less than great appreciation rate compared to other areas in San Antonio. This property holds significant potential for renovation. I could see a potential ARV of $1.6M to $1.8M.

Real Estate Tip:

Investment Strategy:

BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat)
The BRRRR strategy allows investors to recycle their capital by purchasing undervalued properties, rehabilitating them, and refinancing once their value increases. For instance, if you purchase a home for $180,000, spend $30,000 on renovations, and refinance at $280,000, you can extract equity to reinvest. This approach works especially well in emerging neighborhoods like those in East San Antonio, where values are on the rise.

Current Interest Rates:

San Antonio, Texas
30-Year Fixed Residential: 6.9%
15-Year Fixed Residential: 6%
Commercial Rates: Starting at 6.1%

Residential mortgage rates in San Antonio are hovering around 6.9%, slightly above the national average. While higher rates are deterring some buyers, they’re creating more opportunities for investors targeting rental properties. Commercial rates, slightly lower, remain an attractive financing option for larger investments like multifamily complexes.

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Economic Conditions

San Antonio’s economy is thriving, with job growth of 3.1% YoY, fueled by the healthcare, defense, and tech sectors. The unemployment rate stands at 3.4%, below the national average, reflecting strong workforce demand. However, inflationary pressures are affecting construction costs, which have risen 4% over the past year. Despite this, San Antonio remains an affordable and appealing market for investors, with consistent population growth driving housing demand.

Overall Market Rating: 6/10

I would rate this market an 6/10 mainly because of the dwindling housing market and a depreciation in housing prices over the past couple years. This market may see a bounce back in the next few quarters but I personally would not invest in this market as other Texas markets seem to be getting the majority of growth.

How to Profit from Properties in Growing Military Markets

Military installations like Joint Base San Antonio provide a steady stream of renters, from enlisted personnel to contractors. Investors can benefit by focusing on properties close to bases. For example, purchasing a duplex near a military facility ensures high occupancy rates and reliable rental income. Additionally, VA loans make homeownership accessible for service members, ensuring sustained housing demand in these areas.

Key Takeaways:

  • San Antonio Market Update: Median home price is $301,000, down -0.4% YoY, with active listings rising.

  • Deal of the Day: A $1,200,000 multifamily property in San Antonio generating $11,200/month in rental income.

  • Tip: Leverage local tax incentives and opportunity zones to boost profitability.

  • Investment Strategy: The BRRRR method offers scalable growth in emerging neighborhoods.

  • Interest Rates: Residential mortgages at 6.9, with commercial rates starting at 6.1%.

  • Economic Impact: Job growth of 3.1% YoY and low unemployment drive strong housing demand.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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