If you’ve been keeping up with San Antonio real estate news in the last several years, you know that the market is heating up! Real estate investors around the nation are turning their eyes on San Antonio as over 30K houses were sold in the city last year alone – that is a 4% increase from the previous year! If you’re thinking of buying an investment property to rent out in San Antonio, we highly recommend making it a short-term Airbnb rental rather than a long-term traditional rental property. How come? Keep reading to find out!
Why Invest in Airbnb San Antonio Real Estate Market
1) Airbnb Friendly
Like many cities in the Texas real estate market, San Antonio welcomes Airbnb real estate investors with open arms. The city continues to rank among the best cities for Airbnb rentals in the US since 2015. The #1 reason for the success of Airbnb investments in the San Antonio real estate market is the city’s short-term rental regulations – or, to put it more accurately, its lack of.
While some cities across the US housing market have minimal restrictions on Airbnb real estate investors and others consider Airbnb illegal, San Antonio is among the “silent cities.” There is no legal framework in place for short-term rentals in these cities, meaning they neither allow nor prohibit Airbnb investments. Only time will tell whether these cities will choose to support or restrict Airbnb rental properties. Thus, San Antonio real estate investors should check the Airbnb laws and regulations before buying an investment property to rent out on the site.
2) Attractive Tourism Destination
Part of San Antonio’s Airbnb success comes from its tourism industry. The city is a cultural hub rich in history – it is home to The Alamo (one of the most important historical sites in the United States), the Roman Catholic San Fernando Cathedral (one of the oldest cathedrals in the US), and the Natural Bridge Caverns (the largest commercial caves in Texas). These are only some of San Antonio’s greatest tourist attractions.
As you know, tourists are the main tenants of short-term investment properties, and San Antonio is a top city for tourists visiting Texas, with more than 34 million people visiting each year! Moreover, most of these tourists are families who would prefer renting out a house than staying in a hotel suite. This is another reason why the San Antonio real estate market is a top market for Airbnb investments!
To start looking for and analyzing the best investment properties in your neighborhood of choice in San Antonio, click here.
3) San Antonio is Very Affordable
Although property prices in the San Antonio real estate market have been rising recently, they’re still lower compared to other cities in Texas like Austin, Houston, and Dallas. The cost of living is another factor to consider, and even as the 7th largest city in the country, San Antonio’s cost of living is still 9.2% below the national average! In addition, other reasons that make investing in San Antonio appealing to many real estate investors are the low down payments, stable mortgage prices, and low interest rates. As you can see, the San Antonio real estate market is one of the best places to buy a rental property in 2018. Our advice is to buy now before prices rise!
To find the best rental properties to buy in San Antonio, use our Property Finder! This tool gives you a list of the best properties to choose from for real estate investing purposes. Using different filters, you can set your criteria and, within minutes, see which properties meet your needs and have the highest potential return on investment.
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San Antonio Real Estate Market Statistics
- Median Property Price: $293,510
- Price Per Sqft: $131.39
- Traditional Rental Income: $1,551
- Airbnb Rental Income: $2,294
- Traditional Cash on Cash Return: 0.94%
- Airbnb Cash on Cash Return: 2.84%
- Traditional Cap Rate: 0.94%
- Airbnb Cap Rate: 2.84%
- Airbnb Occupancy Rate: 44.39%
As you can see, Airbnb is clearly the optimal rental strategy in the San Antonio real estate market this year! These numbers are computed using Mashvisor’s investment property calculator – yet another tool that we provide to add efficiency to your real estate investing career. This tool gives you projections of necessary data including the cap rate, cash on cash return, rental income, and occupancy rate of investment properties in almost every city and neighborhood across the US housing market. Thus, you can easily analyze different properties in different locations to identify the best places to find a profitable rental property. To start using this tool and others, sign up for Mashvisor!
The Best Neighborhoods for Airbnb Investments in San Antonio Real Estate Market
- Median Property Price: $409,721
- Price Per Sqft: $132.36
- Airbnb Rental Income: $4,847
- Cash on Cash Return: 7.13%
- Cap Rate: 7.13%
- Airbnb Occupancy Rate: 50.33%
- Median Property Price: $170,034
- Price Per Sqft: $102.41
- Airbnb Rental Income: $2,627
- Cash on Cash Return: 7.09%
- Cap Rate: 7.09%
- Airbnb Occupancy Rate: 60.94%
- Median Property Price: $216,665
- Price Per Sqft: $108.43
- Airbnb Rental Income: $2,644
- Cash on Cash Return: 5.91%
- Cap Rate: 5.91%
- Airbnb Occupancy Rate: 56.23%
The Heights at Stone Oak II
- Median Property Price: $418,038
- Price Per Sqft: $143.46
- Airbnb Rental Income: $4,363
- Cash on Cash Return: 5.69%
- Cap Rate: 5.69%
- Airbnb Occupancy Rate: 46%
- Median Property Price: $236,908
- Price Per Sqft: $106.09
- Airbnb Rental Income: $2,529
- Cash on Cash Return: 4.93%
- Cap Rate: 4.93%
- Airbnb Occupancy Rate: 45.17%
- Median Property Price: $250,511
- Price Per Sqft: $110.55
- Airbnb Rental Income: $2,013
- Cash on Cash Return: 2.22%
- Cap Rate: 2.22%
- Airbnb Occupancy Rate: 51.5%
Don’t think that 2.22% is a good cap rate? We suggest reading this: Forget Everything You’ve Heard About What Is a Good Cap Rate
The Bottom Line
Owning an Airbnb rental property in the San Antonio real estate market is an opportunity you do not want to miss! If you’re ready to start searching for an investment property in the city, use Mashvisor to find, analyze, and compare different properties to determine the best property to invest your money in and start generating profits. To start out your 14-day free trial with Mashvisor, click here.
To learn more about how we help property investors make faster and smarter real estate investment decisions, click here.