I recently showed a small sample of potential single-family rental homes in northwest San Antonio near the Medical Center, USAA, UTSA, and west towards Lackland AFB, Sea World, and the financial and data centers off Highway 151. My client was only in town for the afternoon, and had been delayed to boot. I only had time to show a sampling of homes out of the list of candidates I had made in the representative neighborhoods that I drove through.
I only included homes and neighborhoods that attract tenants who can afford to pay from $1,000 to $1,400 in rent. Less than that, and there can be income issues. More than that, and homes take longer to rent, since that rental rate is the "sweet spot" for these properties. If you buy a ready-to-lease house in northwest San Antonio for $200,000 you are not going to get a whole lot more rent than for one that cost you $150,000. My preferred price range is from $120,000 to $165,000. In this price range you should be able to break even, depending on your financing, of course. You can get a great home in a stable, popular neighborhood that will hold its value in the long term. Furthermore, you can get a home that has the features that will attract good tenants who will take care of it!
Some things to keep in mind: 4-bedrooms get higher rent, usually around $100 in this price range, than 3-bedrooms. Homes in gated communities can command a slightly higher rent, too--typically $50 more a month. Size doesn't matter (in this case), but I don't usually like to go under 1,600 square feet or over 2,800. Tenants want an attractive fenced back yard, open kitchen/living area, and a big master bedroom. a deck or patio (preferably covered). And a garage is a must.
So here are the 20 listings I wanted to show, but didn't have time for in one crazy afternoon of racing around. The link will be good for 30 days, so if you want an update next month, just let me know. I'm sure I will have seen some more by then!
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