Investing in San Antonio: Watch out for goats

This week, we head to Alamo City to hear from Daniel Cabrera at Sell My House Fast TX.

Average home price: $245,251 (Down 3% YoY)
Homes that sell over list price: 13.2%
Homes that sell under list price: 64.3%
Average rent: $1,620/month

The pros: “San Antonio is a great spot for investors: We’ve got a steady flow of people moving here and jobs popping up thanks to strong demand drivers like [Air Force base] Joint Base and our main job sectors of healthcare, education, and logistics,” says Cabrera. “Plus, entry-level prices are still reasonable.” He recently bought a single-story 1970s home in Northeast San Antonio for $210,000 and spent $34,000 fixing it up. It’s now rented for $1,950 a month.

The cons: Older homes can get hit with curveball hikes in insurance and taxes that can impact underwriting. Some properties are so run-down, they’re more trouble than they’re worth. Cabrera recalls one foreclosure he bought for $175,000, where the homeowner refused to leave—and kept an ornery goat on guard. “When I saw the goat, I was like, ‘Oh, s--t,’” he says. It took him five months to evict the owner and her many animals, goat included.

His advice: “Underwrite conservatively and definitely get a sewer inspection for any home built before 1980,” Cabrera says. “Properties can linger on the market for a while, so you’ve got to be realistic with pricing and open to making some concessions.”

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