How to Buy San Antonio Investment Property in 2025
Considering a San Antonio investment property?
If so, you’re in good company.
While other cities in Texas have been in the limelight, San Antonio is quietly experiencing significant growth, making it a promising investment destination.
A report recently released by the National Association of Realtors identifies the “top 10 hot spots” projected to thrive in the 2025 housing market, based on key economic, demographic, and housing trends relevant to real estate. The San Antonio-New Braunfels metro area earns a prominent spot on this list, highlighted in the report titled “Housing Hot Spots for 2025: Top Markets Amid Stabilizing Rates.”
This 2025, San Antonio, Texas, offers several compelling reasons for real estate investment, especially for those targeting long-term rental income or fix-and-flip opportunities.
In this San Antonio investment property guide, we’ll cover:
San Antonio real estate market trends for 2025.
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, Saueressig 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. The 720,000-square-foot $500 million JCB factory located on the South Side will produce telescopic handlers and mobile elevating work platforms starting in 2026. JCB plans to start recruiting for the 1,500 jobs on site in mid-2025.
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 is one of the fastest-growing cities in the U.S., with a population that continues to expand due to job opportunities, affordability, and a high quality of life. This growth creates steady demand for housing, both for buyers and renters. Recent data reveals that San Antonio's population has grown to 1,513,974 in 2024, reflecting an annual growth rate of 1.25%.
This steady increase represents a 5.19% rise since the last census, underscoring the city's vibrant growth and its role as a thriving hub of opportunity and diversity.
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.
The city is home to Joint Base San Antonio, a massive military hub. Military personnel, contractors, and support staff often require short- and long-term housing, creating a consistent pool of renters.
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
As of December 2024, the San Antonio housing market has seen a modest dip in home prices, with the median sale price dropping to approximately $285,400—a 2.79% decrease compared to November.
This shift indicates a cooling market, with properties staying on the market longer than they did the previous year.
The San Antonio rental market remains strong, with median rent at $1,495 according to Zumper.
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.
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.
In 2023, it had the second-largest population boom in the United States with a 12.49% increase in population. Its 5-year change in total population stands at 29.68%, and over the past decade, it has increased by a whopping 56%!
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:
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.
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