← Back to all articles

How to Buy San Antonio Investment Property in 2024

Considering a San Antonio investment property?

If so, you’re in good company. 

While Austin has been in the limelight, San Antonio is quietly experiencing significant growth, making it a promising investment destination. 

In this San Antonio investment property guide, we’ll cover:
  • San Antonio real estate market trends for 2024. 
  • Popular neighborhoods to keep your eye on.
  • Where to find the best investment properties (and how to finance them).
As you’ll see, for certain types of investors, San Antonio may offer even more opportunities than Austin. 

Let’s dive in.
San Antonio downtown skyline

Why invest in San Antonio real estate?

While the majority of tech titans are relocating to Austin, San Antonio is attracting a growing number of companies, including giants like USAA, Toyota, GM Financial, Boeing, Wells Fargo, and Caterpillar. New additions such as Pabst Brewing, Nissei America, Sauressig Engineering, and Skipcart, as well as the DeLorean Motor Company's comeback, contribute to job growth and economic prosperity.

JCB, the world’s largest privately owned manufacturer of construction and agricultural equipment, announced that San Antonio will be home to the company’s second and largest North American manufacturing facility, the greatest economic development infusion in the region in 20 years with an expected $30 billion economic impact over the next 10 years and the creation of more than 1,500 jobs.

There are also a number of huge projects opening up in San Antonio in 2024, among which is the 300,000sq.ft. Microsoft Data Center in Medina County, just west of the city of San Antonio. The data center. 

The rise in remote work is also boosting San Antonio’s real estate market. A recent study ranked San Antonio as one of the top cities for remote workers. As remote workers pour in, competition for housing heats up.

This population growth is more than just a response to COVID-19 — it’s been on the rise long before the pandemic started, and it’s expected to continue growing long after. 

San Antonio has been experiencing steady population growth, driven by factors such as job opportunities, a relatively lower cost of living compared to other major cities, and a vibrant cultural scene. The increasing population creates a consistent demand for housing, making it an attractive market for real estate investors. In the recent US Census, San Antonio is listed as the 7th largest city nationwide in terms of population. 

More importantly, San Antonio’s population has a stable foundation. It’s known as Military City USA, home to four major military installations, over a dozen Veterans Administration hospitals, and one of the largest active and retired military populations in the nation.

Unlike tech companies, major military bases don’t usually pack up and move cities. Since this portion of San Antonio’s population is relatively fixed, your investment is safe from a San Francisco-like mass exodus.

San Antonio real estate market trends

Realtor.com’s 2024 real estate market forecast says that San Antonio’s housing prices are expected to drop by 9.4%. The median home price in the San Antonio area sat around $319,420, according to the San Antonio Board of Realtors. Despite cautious predictions, several indicators continue to point positively for San Antonio. 

The San Antonio rental market remains strong, with median rent at $1,695 according to Zillow. 

In the recently released Emerging Trends in Real Estate report by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), San Antonio makes its first appearance in the top 10 as it ranked #8 in the Markets to Watch list. 
Hot neighborhoods for investing in San Antonio real estate
TX hill country views common on the north side of the city

Northwest Side

The Northwest Side is a great neighborhood for investors looking for rental properties in San Antonio.

Home to the University of Texas at San Antonio and UT Health San Antonio, the area has a constant stream of students who need housing.

The business sector includes the corporate offices of Valero, NuStar Energy, and USAA — one of San Antonio’s largest employers. These companies attract thousands of young professionals who add more competition to the rental market.

During the pandemic, many USAA employees went remote. And if they start returning to the office, the neighborhood could heat up even more.  

Denver Heights

Once known as a crime-riddled historic neighborhood on the East side, Denver Heights is making a comeback.

Investments and renovation projects in the area have completely transformed the area over the past five years. And more projects — including a proposal for a new outdoor entertainment venue — are adding even more value to the neighborhood.

According to MYSA, these new developments are turning Denver Heights into one of the trendiest neighborhoods in San Antonio.

The neighborhood has 100-year-old houses in need of TLC, making it a great opportunity for fix-and-flippers.
I-35 along the Guadalupe River in New Braunfels, which links Austin and San Antonio

New Braunfels

New Braunfels is not only an attractive suburb within the San Antonio metro, but it’s also ranked one of the hottest towns in the entire nation.

The small town’s population inflated 56.6% from 2010 to 2020, making it the third-fastest growing town in the U.S. (of towns greater than 50,000 residents).

And with good reason. 

Time Magazine
named it one of the best places to live in 2020, and its proximity to both San Antonio and Austin makes it a popular spot for in- and out-of-state migrants to settle. 

In the coming years, interest and development in the area are only going to increase. 

The Austin-San Antonio Corridor

The Austin-San Antonio Corridor runs along Interstate 35 connecting the two cities. 

This includes New Braunfels — which steals much of the attention — but the entire corridor is poised for explosive growth. 

At the current rate of development, some experts predict that San Antonio and Austin will combine to form a mega-metro within the next 50 years.

That means the value of any property situated between the two cities is primed for serious growth in the years to come. 

How to buy an investment property in San Antonio, Texas

The process for investing in San Antonio real estate can be broken into five steps:

1. Choose an investment strategy

There are many ways to build wealth with real estate. And before you start property-hunting, you need to pick your poison.

Whether that be a fix-and-flip, BRRRR, turnkey rental property, or other real estate strategy — choosing ahead of time will help you narrow your search.

You can then laser in even further by determining what type of property best fits your needs (single-family home, residential multi-family home, commercial, new construction project, etc.).

2. Weigh your financing options

You also want to have an idea of how you’re going to fund your project. 

Thanks to San Antonio’s housing supply shortage, profitable investment properties don’t last long on the market. That means when you find a winner, you need to act fast. If you still have to figure out how you’re going to finance the project, someone else might snatch it up from under your nose.

Your three main financing options are:

  • A conventional loan. Banks and traditional lenders usually offer the lowest rates, but you must meet strict requirements and the underwriting process can take months.
  • A hard money loan. Hard money lenders in San Antonio (or elsewhere in Texas) have more flexible requirements and can fund projects in as little as 48 hours.
  • A joint venture. A joint venture is a more advanced funding strategy that pools money from multiple investors.
No matter which method you choose, take time to build relationships with potential lenders before you start your property search.

3. Hunt for investment properties

It’s possible to do your homework, study the markets, and find investment properties all by yourself. But to maximize your odds of success, talk to wholesalers and agents specialized in your preferred neighborhoods.

They might be able to use their connections to find off-market opportunities, and they can give you advice on what types of properties perform best in the area.

When comparing your options, make sure to consider:
  • Job markets
  • Population growth
  • Ratio of renters to owners
  • New development projects
  • Neighborhood vacancy rates
  • Household size demographics
  • Crime, schools, and public transportation data

For an easier side-by-side comparison, create a spreadsheet to record information about each potential property.

4. Finance your project

Once you find a San Antonio investment property for sale that meets your requirements, get the ball rolling with your lender as soon as possible. 

With conventional lenders, you’ll need to submit piles of paperwork, schedule appraisals and inspections, and wait for the lengthy underwriting process. 

Hard money lenders won’t have as many hoops to jump through, but you must prove to them why the property is a good investment. From there, choose whether you’d like a bridge loan or a long-term rental loan.

5. Refinance (if needed)

If there are multiple interested buyers, you may need to use a bridge loan to snag the property before anyone else.

Bridge loans are temporary loans that usually need to be refinanced within 6 to 24 months — either with a long-term rental loan or a conventional mortgage (if you qualify).

At Longleaf, we can save you fees by bundling your bridge loan together with your refinance.

Need financing for a San Antonio investment property?

Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.

Is your project profitable?

Use our hard money loan profit calculator and estimate your project's potential - it only takes 30 seconds.

Quick form
Input core assumptions about your project using our short form.
Review your profit
Within minutes, you'll receive your project's numbers and a sample term sheet for the deal from Longleaf Lending.

Apply today.
Fast track your funding.

Submit your next loan request in 60 seconds. Our streamlined process gets you on the path to funding with minimal hassle.