Historic homes have an appeal that no new home can match. There are buyers that will only consider homes built from 1800-1940's. There is an amazing 1870's home that just sold in Austin for $825K. The demand is there.
San Marcos is still very affordable and lends itself easy access San Antonio and even easier to Austin, making it a great place to live/commute from. The demographics indicate a split between students and retired people as the larger groups there. If you purchase a home that is designated Historical, there are certainly significant tax benefits. If you are looking for investment property, there are plenty of students to cater to, and the enrollment at Texas State continues to increase, indicating a good for return on the investment when you sell.
Keller Williams Realty