San Antonio Real Estate Investing

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Contributor, Benzinga
July 30, 2020

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As 1 of the fastest-growing cities in the country., San Antonio proves to be a trendsetter for real estate investors. The city is full of potential as a central economic hub of Texas and home to many Fortune 500 companies. 

Check out our guide to San Antonio real estate investing to learn how the city can be your next investment opportunity. 

Why Invest in San Antonio?

San Antonio is home to 1.5 million people. It is mainly occupied by industrial companies from the military, tourism, healthcare and insurance sectors. 

More than 34,430 single-family houses were sold in San Antonio during 2019. The number has grown by 7% from 2018 and is expected to maintain momentum in 2020. The annual property appreciation rate in San Antonio is projected at 7.8%, so you can expect positive returns on your real estate investments

The cost of living is lower than in other metropolitan cities like New York. You can buy a single-family home in San Antonio for an average price of $281,353. And you can plan to rent out your investment home to earn solid revenue. A single-family home could earn you a rental income of $1,508 per month. 

With these financial prospects in place, real estate properties in San Antonio are hot sellers. Here are our top reasons to invest in the city:

  • Low unemployment rates 
  • Among 20 fastest-growing cities in the U.S.
  • Corporate headquarters of iHeartMedia, Valero Energy, Rackspace, Datapoint, NuStar Energy and Whataburger
  • Safer neighborhoods due to heightened military presence
  • Steady annual increase in land appreciation rates 

San Antonio Real Estate Market Forecast

The growing economy of San Antonio has been a draw for people from rural areas. Thousands of job opportunities are created every month. Tech companies and military facilities stationed in San Antonio have increased the percentage of renters to 45%. 

New construction contracts and developments have been issued to fulfil the demands of the increasing workforce of San Antonio. The city has thousands of homes for sale at any time. And the foreclosure rate in San Antonio is 1.6%. This is slightly higher than the national rate of 1.1%. These foreclosures are either due to default, owners auctioning homes or bank-owned properties.  

Check out these prime locations in San Antonio for investing in real estate.

Denver Heights

Located close to the King William area, Denver Heights is filled with historic appeal. It is an urban neighborhood and is surrounded by venues such as Alamodome, AT&T Center and Freeman Coliseum. 

Residents can often be seen playing indoor games at the Denver Heights Community Center. It is within the San Antonio Independent School District, which includes schools like the Pickett Academy and Healy-Murphy Center High School.

Thunderbird Hills

Located northwest of downtown San Antonio, Thunderbird Hills offers a wide variety of family-friendly homes to invest in. The Ingram Mall is a frequently visited hotspot that delivers access to restaurants and retail stores. 

Entertainment venues such as the Tower of Americas, Majestic Theatre and Ripley’s Believe It or Not are at a walking distance. The St. Mary’s University and University of Texas Health Science Center are also nearby to Thunderbird Hills. 

Tobin Hills

Tobin Hills is 1 of the most vibrant parts of San Antonio. Residents are a good mix of families and individual artists. The Pearl Brewery commercial complex has a thriving farmer’s market, fine dining restaurants, clubs and shops in the vicinity. 

The Tobin Hills Center for Performing Arts is home to the iconic San Antonio Symphony. It also regularly hosts art galleries to showcase the works of contemporary artists. The Hawthorne Academy and Fox Technical High School are prominent schools in Tobin Hills. 

Canyon Creek Bluffs

Canyon Creek Bluffs is a suburban community to the north of San Antonio. It has quiet neighborhoods with 2 hospitals nearby for medical care. The Vineyard Shopping Center has many stores that cater to your everyday needs. 

Camp Bullis is a military facility stationed at Canyon Creek Bluffs. Grocery, shopping and restaurant options like Whole Foods Market, Applebee’s and Target are also close by. SilverHorn Golf Club and Canyon Springs Golf Club draw residents to the area, and the Blatmann Elementary School and Hidden Forest Elementary School are notable education institutes in Canyon Creek Bluffs. 

Investing Passively in San Antonio

Passive real estate investment means you can earn a regular income from properties without the hassles of management. There are 2 major categories of passive real estate investing: REITS and crowdfunding.

REITs

You can buy shares of multi-million dollar residential and commercial properties through real estate investment funds (REITs). These are a bit different from real estate stocks but can be found listed on major stock exchanges and offer high returns. 

REITs have real estate agencies develop and manage rental properties occupied by families and businesses on rent. The rent collected is distributed to its shareholders as quarterly or annual dividends. Unlike buying or selling properties, you can easily trade your shares at any time on the stock market. 

If you’re new to real estate investing, you can check out our guide on how to invest in REITs

Crowdfunding

Crowdfunding platforms invest in real estate properties by pooling money from online investors. Unlike REITs, you can directly choose the properties you want to invest in on their website. In turn, these real estate firms guarantee a fixed rate of return on your investments. Diversyfund is a popular crowdfunding platform that offers a high return of up to 18%.   

You have complete transparency on all transactions made on the crowdfunding platforms. You can conveniently manage your account and research details such as the location, rental rates and occupancy rates before making an investment.   

Best Passive Real Estate Investing Platforms

Passive real estate investing platforms give you plenty of room to diversify your portfolio. You can browse through dozens of listed residential and commercial properties at the click of a button. 

Here are some of the best real estate investing platforms on the market. 

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  • CityVest
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    Must be accredited investing a minimum of $25,000.

  • Fundrise
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  • First National Realty Partners
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  • CalTier
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  • LEX Markets
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  • Arrived Homes
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  • Realty Mogul
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Own Affordable Assets in San Antonio

The historic architecture of San Antonio and its artistic avenues have triggered a massive interest from real estate investors. The low cost of living and high-income rates are driving many people to the city. Cash-in on the opportunity and earn profits from rent generated through reliable real estate assets. 

Accelerate Your Wealth

Arrived Homes allows retail investors to buy shares of individual rental properties for as little as $100. Arrived Homes acquires properties in some of the fastest-growing rental markets in the country, then sells shares to individual investors who simply collect passive income while waiting for the property to appreciate in value over 5 to 7 years. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. Offerings are available to non-accredited investors. Sign up for an account on Arrived Homes to browse available properties and add real estate to your portfolio today.