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San Antonio Real Estate Investing

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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. 

Minimum Investment
$500
Fees
No management fees
Get started securely through Diversyfund’s website
Minimum Investment
$500
Fees
No management fees
1 Minute Review

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For
  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros
  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons
  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT
Minimum Investment
$10,000
Fees
1% – 1.75%
Get started securely through CrowdStreet’s website
Minimum Investment
$10,000
Fees
1% – 1.75%
1 Minute Review

CrowdStreet is a commercial real estate investing platform where people can invest directly in commercial projects. Unlike a brokerage firm, CrowdStreet isn’t a middleman. Instead, the platform acts as a marketplace where investors can pick and choose the best deals for their time horizon and strategy.

Available investments range from family living spaces to office buildings to storage facilities and investors can sign up for a free membership. Your investment options are limited to what’s live on the Marketplace and you’ll need capital to build a diverse real estate portfolio. Only accredited investors can access deals through CrowdStreet.

Best For
  • Investors looking for diversification away from stocks
  • Real estate investors interested in new opportunities
  • Accredited investors with lots of capital at their disposal
Pros
  • Unique opportunities available
  • Makes real estate accessible and understandable
  • Investors can devote capital to both debt and equity offerings
  • Offers quality education materials and answers to FAQs
Cons
  • Real estate is highly illiquid
  • Most properties require a minimum $25,000 investment
  • You’re limited to what’s on the CrowdStreet Marketplace
Minimum Investment
$1,000
Fees
2% – 3%
Get started securely through stREITwise’s website
Minimum Investment
$1,000
Fees
2% – 3%
1 Minute Review

Looking to diversify your portfolio and get into real estate? A real estate investment trust (REIT) that owns income-producing real estate may be a great place for you to start. Streitwise is a REIT that specializes solely in commercial real estate and has a low entry investment requirement of $1,000. Based in Los Angeles, Streitwise was created in 2017 by three veteran real estate investors who were frustrated that there wasn’t a good option for unaccredited investors to get into the commercial real estate market.

Streitwise focuses on investing in low-risk rental commercial real estate aimed at providing clients with consistent high-yield returns. The team invests in markets that are steadily growing and offer low-risk potential outcomes. While they’re still young and growing, the founders have built their business based on solid experience coupled with a vision for the future of investing. If you’re looking to diversify your current investment portfolio but feared real estate was too lofty a goal, Streitwise is worth exploring.

Best For
  • Investors looking to diversify
  • Investors with less than $200k in annual income
  • Passive traders
Pros
  • Consistent quarterly dividends
  • Low, transparent fees
  • Low investment minimum
  • Convenient and easy to use
Cons
  • Young company
  • Projections are uncertain
  • Limited portfolio
  • Limited technology
Minimum Investment
$500
Fees
0.85% asset management fee per year
Get started securely through Fundrise’s website
Minimum Investment
$500
Fees
0.85% asset management fee per year
1 Minute Review

Fundrise, a real estate investment platform, allows small investors to gain exposure to a diversified portfolio of real estate projects hand-picked by the Fundrise team. Investors can choose between a starter plan and three advanced plans, all designed to meet certain investing goals. Each plan gives you an exposure to a specific portfolio which comes in a form of eREITs and eFunds, custom-made products which are not traded on security exchanges.

Best For
  • Small real estate investors
  • Passive investors
  • Long-term investors
  • Beginners
Pros
  • Allows small investors to get exposure to commercial real estate
  • Diversification in the real estate sector
  • Goal-oriented investing
  • Relatively low fees
  • 90-day guarantee
Cons
  • Liquidity issues as eREITs and eFunds are not exchange traded
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price.
Get started securely through Roofstock’s website
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price.
1 Minute Review

Roofstock is a registered real estate broker and marketplace specializing in single-family rental properties. Unlike its competitors, Roofstock isn’t selling shares of properties through trusts or LLCs — they’re connecting buyers and sellers directly. Roofstock properties are carefully vetted by a qualified home inspector and come with a rental income guarantee. That’s right, Roofstock will pay you rent even if your property stays vacant.

Financial data on each property is available even to those who are not clients and nonaccredited investors are welcome to join free of charge. Cash and financing options are available when making a purchase, but Roofstock will tack on their own fees in addition to closing costs.

As the solitary owner of your property, you’ll be expected to fund repairs out of your own pocket. Still, Roofstock is a great way to get a foot in the door of the real estate industry and their fees are much lower than most of the competition.

Best For
  • Nonaccredited investors
  • Real estate investors with limited capital
  • Investors looking for income through rental properties
Pros
  • Free to sign up
  • No investment minimum
  • Ownership of real assets
  • Low fees 30-day money back guarantee
Cons
  • Single-family homes only
  • Need to finance repairs yourself
  • Requires down payments

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. 

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