area around UTSA (zipcode 89249) good investment? (Alamo, Terrell: apartments, leasing, houses)

[blueamber]

For the area around UTSA with zip code 79249, do you think it would be a good investment if buying a say 2000 sq ft house (say $200k - $250k) there? I'm thinking living in the house for 3-4 years, during which I can pay off my mortgage. Then it becomes a rental property, and I'll buy a large house in a nicer district as primary residence.

Any thoughts? More importantly, given my plan, any good areas to suggest?

[TXEX06]

You would be much better off investing in the Southtown area (Lavaca neighborhood) or uptown area (Tobin Hill, Alta Vista, Monte Vista). I would even look at Terrell Heights.

[blueamber]

Thanks, TXEX06. I had no idea about these areas. I'll do some research, but can you tell me briefly why they are better than USTA area?

[Danbo1957]

Those areas are not "better", just other (very different) options; though, you will not find anything around $200-250K, double or triple that price.

Your $200-250K investment in 79249 will increase in value, and you will have no shortage of qualified renters to choose from. One thing though, don't buy anything less than a three bedroom, two and a half bath, with garage, and a decent backyard. One and two bedroom apartment rentals close to UTSA are expensive for individual students, so you see a lot of roommate-situations leasing houses (just above the same monthly rental price as those smaller apartments)-- figure renting your house in the $1100-1400 range.

[elnina]

Is that 79249 or 78249?

[blueamber]

Sorry, typo,it should be 78249

[TXEX06]

Originally Posted by Danbo1957

Those areas are not "better", just other (very different) options; though, you will not find anything around $200-250K, double or triple that price.

Home values in the areas I mentioned are appreciating quicker then homes around UTSA. When the housing market crashed, home values around UTSA and the NW side of town deceased significantly. In the areas I mentioned, home values actually kept increasing during the housing market crash. And you can find homes in the areas I mentioned in her price range. Just don't expect a mcmansion.

[ashbeeigh]

I don't think 78249 has seen much of a change in the prices. I lived there for a good 22 years and don't feel as though much changed as far as prices are concerned. Like someone else mentioned, it's a good area so you'll always have renters, but you won't be making the money you could make in say, Alamo Ranch with that type of home.