http://www.trulia.com/voices/Home_Buying/BEST_PLACE_TO_BUY_AN_INVESTMENT_RENTAL_HOME_IN_SAN-134657en-ushttp://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-70675/http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-70675/Rav, I enjoyed your post. Straight to the point w/ a little description of the rental equation. Thanks for the feedback.Mon, 22 Jun 2009 15:53:47 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-214582/http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-214582/This is a great question and is asked often by people I interact with. Numbers aside, which we will get into later, I think getting a duplex or a four plex is a great idea for investors who are starting out in this field. The main difference between single vs multi-family is CASH FLOW. Leverage is the key in real estate transactions. If you can own 2 or more units that are producing income, you net more and you REDUCE your risk (or share the risk) in case your tenants decide to leave. Please do your math and calculations and always figure out the following and arrive at what your NOI is (net operating income). This is the amount you will net minus your debt service to calculate your cash flow in an investment property. To help you do your numbers, use the following guidelines: POTENTIAL RENTAL INCOME - VACANCY = GROSS OPERATING INCOME - EXPENSES (taxes, insurance, payroll, utilities, maintenance, etc) = NET OPERATING INCOME - ANNUAL DEBT SERVICE = CASH FLOW Please consult with your CPA and your real estate adviser to make the numbers in the deal always work. Call me if you ever have any questions. Good luck!Sun, 21 Jun 2009 21:03:16 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-70675/http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-70675/Vivian, If you always remember the old adage, "the bigger the risk, the bigger the reward" you will have a better idea of which investment product you would like to use. It's very rare that investors selling multi-unit apartment buildings and other real estate that consist of more than one unit would sell if they are making wonderful profits on them. The skill level and pain threshold of buying single family vs. multi-family must be higher in order to be successful. We've seen personally several C- class properties that are cash flowing beauitfully, but they are dumps, tenants go month to month, high turn-over and can only sustain minimal repairs for a short time until major overhauls and capital investments are required to get them back up to par. Location is key as well as knowing the demographics and income levels you desire to work with. Perhaps you may desire to sit down w/ a real estate professional that is experienced in dealing with investors and knows how to narrow down your goals to find you that great investment vehicle you would be comfortable with.Tue, 09 Jun 2009 12:25:34 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-58575/http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-58575/Hi Vivian, If you are looking for a location which will ensure constant rentals, my suggestion is the northwest part of town. Also near Lackland, Randolph, Ft Sam and the universities. These all have "come and go" tenants who are going to remain because of their job/school/assignment. The ROI depends on several factors, not the least of which is the initial price paid. With our market being soft or a buyers' market, now is the time to buy residential income properties. The difference between a 4-plex and SFH for ROI is condition and maintenance. If you maintain the property it will increase the ROI. Being a landlord is not a get-rich-quick type of situation. You enter it for the long haul and then sell when the time or opportunity is right for you. My best suggestion is to use a competent property manager to handle all the details for you. Call me if you would like to discuss further. Best wishes, Dominick Dina, Broker/Owner Christian Realty San AntonioTue, 09 Jun 2009 06:09:44 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-244200/http://www.trulia.com/voices/profile/Real_Estate_Pro-San_Antonio_TX-244200/Vivian, I would look at areas around Lackland Air Force Base. It really depends on how much you want to spend and what you're looking to make on rent. Westcreek (the whole development, which is made of multiple subdivisions) and the Spring Vistas areas are popular for military personnel at the base and are typically nice homes in good condition (Westcreek's HOA is notorious for being very detail oriented so that the neighborhoods stay in good shape). There are always new people moving to the areas and because many military families live in there, they are often recommended neighborhoods for incoming personnel. For lower priced housing, areas in the Northwest Territories are popular. Of course there's a lot out on the east side of town as well. It really depends on how much you're willing to spend and what your ultimate long term goals are. I haven't heard many great things about multi-unit housing here in San Antonio. Although they do exist, I know the property manager in my office has had a tough time with them. Hope that helps! Matt Stigliano, Realtor® 210.240.6222 Exit Realty North-San Antonio http://www.RErockstar.com "Your all access pass to San Antonio real estate."Mon, 08 Jun 2009 18:06:52 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Schertz_TX-181061/http://www.trulia.com/voices/profile/Real_Estate_Pro-Schertz_TX-181061/Hello Vivian, There is not a "best place" to buy rental homes as it depends on the area. You can buy some near colleges or the military bases and you should, the key word here is "should" be able to rent them out. Rentals are all throughout San Antonio, it just depends on the price range of the rentals you are looking to buy. As far as multiplexs vs single homes, it's really the amount of income you have coming in and the expenses coming out, also the upkeep of a multiplex versus a single home. You have to look into whether or not you can maintain the properties expenses during the times you are without a tenant. With a mutiplex your expenses will be more during the vacancy times. I hope this answers your questions and I wish you well.Mon, 08 Jun 2009 18:03:57 -0700