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Airbnb Investment All About Airbnb

Best Places to Airbnb nearby San Antonio, Texas in 2023

Best places to Airbnb in Texas

Key Takeaways
  • San Antonio’s overall affordable cost of living, low unemployment rates, and high occupancy rates are some of the major reasons why property investors prefer this city in Texas.
  • Discover the top 10 Areas for Airbnb nearby San Antonio, Texas. The essential Airbnb data including median property prices, Airbnb annual revenue, and gross rental yield among others will be revealed.
  • Those who plan to invest in an Airbnb property, will learn about the profitability of San Antonio investment properties and choose among the most recommended property types with the highest gross rental yield.

Introduction

When looking for a city to start an investment property in, it’s always recommended to look at all the options first. If you’re looking to target Texas, to begin with, then you have to look at each nearby city’s Airbnb data and historical trends. This is also while considering which particular neighborhood can bring the most return and profit. 

Airbtics’ data shows that an Airbnb host can earn the highest monthly revenue in San Antonio, compared to other Texas cities. Since there are various job opportunities and a diverse landscape of culture, some property investors prefer to start with San Antonio among others.

However, how can property investors like you have the assurance that the market you plan to aim for will bring long-term profitability? What if your financial goals aren’t met as anticipated? And where is the best place to buy a rental property in San Antonio?

The short answer is using an Airbnb income calculator to get backed up with accurate data. In this article, we’ll show you where the best areas for Airbnb near San Antonio are located. You will also learn some of the expert tips for property investors and make the wisest investment decisions moving forward. Continue reading and unlock new knowledge!

Is Airbnb Profitable in San Antonio?

Airbtics confirms that Airbnb is certainly profitable in San Antonio. This varies according to your target location, property type, amenities, and hosting skills among the rest.

Airbtics’ data confirm that Austin City has the highest Airbnb annual revenue of nearby cities in San Antonio. An Airbnb host can expect to earn an average annual revenue of $217,866 for a 5-bedroom property.

Why invest in an Airbnb in San Antonio?

There are several San Antonio investment properties for sale that can be found online. You can even visit properties and drive around to check in! But why invest there in the first place? San Antonio is known for its deep musical history and tourist attractions. However, there are other major reasons why property investors prefer to purchase properties in San Antonio:

  • Affordability of Properties & Low Cost of Living

If you ask other property investors, these are both great combinations for a successful investment! San Antonio’s affordable cost of living and low property prices symbolize a good headstart. In fact, Home City declares that San Antonio is a perfect seller’s market due to its low inventory and rising demand for housing.

  • High Appreciation Rate

Another primary reason for investing in real estate in San Antonio is property appreciation. This city is also anticipated to outperform the rest of Texas cities with home prices to increase by 3.5% in 2022.

  • Rental Growth

San Antonio is not only known for its affordability, but also for its rental growth. This city is even one of the fastest-rising rents in the US! Its single-family home rents are commonly in demand, making it a haven for property investors.

Best places to Airbnb in Texas

Top 10 Best Areas to Airbnb nearby San Antonio

So it boils down to the question, where is the best place to buy a rental property in San Antonio? Using Airbtics’ Discovery Tool, we discovered the nearby cities & best places to Airbnb in Texas: 

1. San Antonio
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $191,940
  • Airbnb Annual revenue: $37,679
  • Gross rental yield: 19.63%
  • Located 11 miles from San Antonio City Center (7 mins drive)

 

2. New Braunfels
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $358,676
  • Airbnb Annual revenue: $72,283
  • Gross rental yield: 20.15%
  • Located 30 miles from San Antonio (36 mins drive)
3. Canyon Lake
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $301,795
  • Airbnb Annual revenue: $44,735
  • Gross rental yield: 14.82%
  • Located 34 miles from San Antonio (55 mins drive)
4. Fredericksburg
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $514,936
  • Airbnb Annual revenue: $73,255
  • Gross rental yield: 14.23%
  • Located 63 miles from San Antonio (1 hour and 6 mins drive)
5. Austin
  • Best bedroom size: 5 bedrooms
  • Median property price (5 bedrooms): $1,188,690
  • Airbnb Annual revenue: $217,866
  • Gross rental yield: 18.33%
  • Located 74 miles from San Antonio (1 hour and 26 mins drive)

6. Burnet
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $262,732
  • Airbnb Annual revenue: $41,051
  • Gross rental yield: 15.62%
  • Located 96 miles from San Antonio (1 hour and 26 mins drive)
7. Corpus Christi
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $156,674
  • Airbnb Annual revenue: $51,332
  • Gross rental yield: 32.76%
  • Located 134 miles from San Antonio (2 hours & 3 mins drive)
8. Port Aransas
  • Best bedroom size: 4 bedrooms
  • Median property price (4 bedrooms): $882,056
  • Airbnb Annual revenue: $112,807
  • Gross rental yield: 12.79%
  • Located 140 miles from San Antonio (2 hours and 42 mins drive)
9. Waco
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $218,326
  • Airbnb Annual revenue: $60,679
  • Gross rental yield: 27.79%
  • Located 167 miles from San Antonio (2 hours and 48 mins drive)
10. Houston
  • Best bedroom size: 4 bedrooms
  • Median property price (4 bedrooms): $324,257
  • Airbnb Annual revenue: $66,483
  • Gross rental yield: 20.5%
  • Located 190 miles from San Antonio (3 hours and 10 mins drive)

Conclusion

Nearby cities in San Antonio have several exciting property investment opportunities. Real estate investment San Antonio can bring exceptional rental yields and annual revenue, so it’s best to explore them now! The best investment property in San Antonio, Texas, can be discovered in one click.

Now that you have an overview of the best places to buy rental properties in San Antonio, take a look at Airbtics’ Airbnb profit calculator and stand out among the rest. It’s built to help you maximize profitability and find long-term profitable investments. Get ahead of your competitors now and look at other San Antonio investment real estate opportunities!

Explore The Most Profitable Airbnb Locations Near San Antonio

Categories
Airbnb Investment All About Airbnb

Is Airbnb property investment profitable in San Antonio, Texas?

airbnb property investment San Antonio

San Antonio is commonly known for its Spanish architecture and Hispanic culture, which makes it perfect if you’re also into Tex-Mex cuisine. Some of the tourist attractions in San Antonio include The Alamo, Market Square, and Mission San Jose. If you are looking for a sign to invest in a property where you can maximize profitability, then San Antonio is the right answer! 

Did you know that San Antonio is also one of the best cities to start Airbnb? Despite this fact, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in San Antonio.

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Investors have been flocking to San Antonio and it’s no surprise. Considering the incredible weather and vibrant community San Antonio has to offer, it’s a great place to live as well as invest.” 

San Antonio Property Management

While rental arbitrage in San Antonio is fairly popular and does not require you to purchase a property, it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable.

Airbnb occupancy rates by city state that an average host in San Antonio can earn up to $24,720 during the peak seasons of June – July. With over 3,525 Airbnb listings in San Antonio, it’s certainly a catch for property investors! 

Here’s an interesting fact: upon comparing the Airbnb occupancy rates in Texas cities, San Antonio ranked the occupancy rate at 64%. 

Not yet convinced? Listen to one of the Airbnb hosts featured in our podcast, Into The Airbnb, who shares her hosting experience in San Antonio. Listen for more Airbnb hosting tips in San Antonio:

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment, defining property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Why Should You Consider Buying An Airbnb in San Antonio?

Some of the attractive features that San Antonio has to offer include many famous architectural monuments, a varied list of entertaining leisure activities and delicious gastronomy!  Aside from the fact that San Antonio is fairly affordable compared to other cities, it’s certainly perfect for a property investor who wants to enjoy these rewards while earning a passive income through Airbnb. Not yet convinced? Here are some of the major reasons why you should consider buying a property for Airbnb in San Antonio :

1. Affordable housing market

The real estate market is an important factor to consider when looking to buy an Airbnb property. Investors will surely find San Antonio’s market attractive because it is fairly affordable. Based on Zillow index, the median house price is $299K and it’s trending up 13% yearly.

2. Low cost of living

Aside from having an affordable housing market, San Antonio also has an appealing cost of living, which 9% less expensive than the national average.

airbnb property investment San Antonio

Source: PayScale

3. The tourist market is great!

It’s a given fact that San Antonio has something for everyone and many travelers arrive in this city looking to experience the city’s vibrant atmosphere. According to San Antonio report, the city welcomes around 31,7M annually.

What are the cons of buying an Airbnb property in San Antonio?

Now that we know the advantages of investing in San Antonio, let’s move on and take a quick look at the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High property taxes

While there’s no State income tax in San Antonio, the property tax bills are among the highest in the nation. The average tax rate in Bexar County is 2.35%, which is above the national average of 0.99%

2. High crime rate in specific areas

Safety is a factor of great importance that you should consider when looking for a place to invest it. One of the downsides of San Antonio is that, like any other big city, it also experiences a high crime rate which is 62% higher compared to other cities in Texas. In addition to this, the chance of becoming a victim of a property crime is one in 24 according to NeighborhoodScout, thus, you should consider also looking for a reliable home security system.

Best Neighborhoods for Airbnb in San Antonio

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in San Antonio. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

airbnb property investment San Antonio

1. Vista Verde South
  • Annual Revenue: $46,032
  • Occupancy Rate: 80%
  • Average Daily Rate: $142
2. Highland Hills
  • Annual Revenue: $24,679
  • Occupancy Rate: 79%
  • Average Daily Rate: $78
3. Stone Oak
  • Annual Revenue: $28,279
  • Occupancy Rate: 76%
  • Average Daily Rate: $91

airbnb property investment Niagara Falls

Is Property Investment Profitable in San Antonio City Centre?

Using a short-term rental calculator, it was discovered that a 3-bedroom apartment in San Antonio City Centre can generate an annual revenue of $73,223 with a steady occupancy rate of 71% and a nightly rate of $212.

airbnb property investment San Antonio

airbnb property investment San Antonio

Profitable Properties for Sale in San Antonio City Centre

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in San Antonio City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment San Antonio
airbnb property investment San Antonio

1 Towers Park Ln Apt 1704, San Antonio, TX 78209

1. Studio-type Property for Sale San Antonio
  • Near Harry Wurzbach Rd 
  • Asking Price: $55,000
GROSS RENTAL YIELD 30.87%
ANNUAL REVENUE $16,981
CASH ON CASH RETURN 66.86%
airbnb property investment San Antonio
airbnb property investment San Antonio

1 Towers Park Ln Apt 2203, San Antonio, TX 78209

2. 1-Bedroom Type Property for Sale San Antonio
  • Near Harry Wurzbach Rd
  • Asking Price: $60,000
GROSS RENTAL YIELD 28.70%
ANNUAL REVENUE $17,218
CASH ON CASH RETURN 60.32%
airbnb property investment San Antonio
2-bedroom SanAntonio

1 Towers Park Ln Apt 1206, San Antonio, TX 78209

3. 2-Bedroom Type Property for Sale San Antonio
  • Near Harry Wurzbach Rd
  • Asking Price: $83,000
GROSS RENTAL YIELD 26.25%
ANNUAL REVENUE $21,788
CASH ON CASH RETURN 52.98%
3-bedroom SanAntonio
3-bedroom SanAntonio

7494 Golf Vista Blvd Lot 234, San Antonio, TX 78244

4. 3-Bedroom Type Property for Sale San Antonio
  • Near Woodlake Trail
  • Asking Price: $109,995
GROSS RENTAL YIELD 26.82%
ANNUAL REVENUE $29,502
CASH ON CASH RETURN 54.70%
4-bedroom SanAntonio
4-bedroom SanAntonio

5751 Broken Lance St, San Antonio, TX 78242

5. 4-Bedroom Type Property for Sale San Antonio
  • Near Broken Lance St
  • Asking Price: $150,000
GROSS RENTAL YIELD 28.69%
ANNUAL REVENUE $43,040
CASH ON CASH RETURN 60.31%

Conclusion

Conducting market research in San Antonio is helpful for accuracy and knowing the potential profitability. With its low cost of living, lively atmosphere and great activities that attract many people to San Antonio and an affordable housing market, it can certainly generate a nice cash flow for property investors. 

As long as the potential revenue is calculated using an Airbnb profit calculator, it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you won’t regret.

Categories
Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage San Antonio

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    Introduction

    While San Antonio offers a low cost of living, that should not stop you from adding another stream of income. What if we tell you that you can earn easy money by renting out a property without actually owning it? Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

    In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in San Antonio to help you make the best investment decisions. Stoked to learn more? Continue reading!

    What is Rental Arbitrage?

    Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

    Rental arbitrage in San Antonio is applicable to any type of residential real estate. These can be multi-room apartments, houses, condo units, duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. 

    Assuming you are renting a duplex in San Antonio for $1,800/month. You are living by yourself on either side and you decide to sublease the other on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approximately $2,600 per month in revenue. Not only will it fully cover your rent, but it will give you a profit of $800. This, in a nutshell, is called rental arbitrage.

    Learn more about corporate lease through this ultimate guide for STR investors!

    Is Airbnb legal in San Antonio?

    Yes! Investors just need to apply for a short-term rental permit for Airbnb operations in San Antonio.  You can expect to receive your permit within 5 business days. This non-transferrable permit is required for each Airbnb property and is valid for 3 years.

    2 Types of Short-Term Rentals in San Antonio:

    San Antonio defines a short-term rental as a property for rent out to overnight guests for less than 30 consecutive days. San Antonio has 2 types:

    • Type 1 Short-Term Rental Permit is subject to the following conditions:
      • The primary house of the owner or operator is on the property.
      • There are no density restrictions.
    • Type 2 Short-Term Rental Permit i is subject to the following conditions:
      • The property is not occupied as the owner’s or operator’s principal house.
      • It is permitted by right but with density restrictions of up to 12.5% of units on a block face.
      •  If the property is in a multi-family structure, it cannot be more than 12.5% of the total number of units on the property. However, you request a special permit from the Board of Adjustment if your Airbnb business will exceed this percentage.
    Requests for permits

    For both types of STR licenses, you must produce proof of ownership documents. You’ll also need to show that the listing is your principal house for Type 1.

    • A $100 application fee, which is payable online by credit card or e-check
    • A floor plan sketch that shows sleeping spaces, the most number of visitors, any escape routes, and the location of fire extinguishers
    • Owner authorization. For rental arbitrage, please a notarized authorization from the owner.
    • The exception grant from the Board of Adjustment (if applicable)

    How do I get into rental arbitrage?

    1. Convince the landlord

    Let’s say you want to get into rental arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your rental arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

    You need to be prepared and well-researched about the Airbnb demand in your area. Good communication skills will also come in handy here. Another thing to always keep in mind: never sublease without informing the landlord! There will be a huge number of people coming in and out when you’re sub-renting. It will only be a matter of time before the landlord figures out what you’re up to, and you might end up getting in trouble. 

    For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

    Points to tell an indecisive landlord.
    • Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
      They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
    • You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. 
      Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
    • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

    In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

    2. Ensure the property and gain the landlord’s trust

    Being on the safe side is always a good idea. Use the right tools to ensure the property is safe, and the neighbors can go on with their lives happily while you do rental arbitrage. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints, and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement: 

    • SimpliSafe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
    • Auto host – Automatically screens problematic tenants.
    • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
    • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
    • Airbnb Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

    Pros and Cons

    Be prepared for what you can expect from rental arbitrage in San Antonio:

    • Pros
      • No purchase of property required
      • Low upfront costs
      • Opportunity to repeat and scale easily
      • Generate profit for other investments or business
    • Cons
      • Invest money and time in furnishing the property

    AIRBNB OCCUPANCY RATES IN USA CITIES?

    We conducted in-depth research & utilized our Airbnb occupancy rate calculator to feature the occupancy rates of major cities!

    how much can you make on airbnb

    How much does it cost to start arbitrage?

    You can expect to spend anywhere between $3,000 to $5,000. This cost includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

    But doesn’t this contradict the low upfront cost of rental arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

    Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

    But this doesn’t mean that rental arbitrage can be done with zero or on a very tight budget. There will be some upfront costs that you will have to prepare for by having some extra cash on hand. It will help pay off the lease during the off-season.

    Expense 1: Rental Deposits

    A rental deposit is going to be your first major expense. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit for your first and previous month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

    Expense 2: Furnishing

    Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

    If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

    Expense 3: Photography

    It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option. 

    Expense 4: Cleaning Services

    This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

    If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

    Expense 5: Legal Consultation

    Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

    They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

    Best areas for Rental Arbitrage San Antonio

    Some of the obvious places that you can think of in San Antonio are  Downtown, Southtown, and First Woodlawn Lake. But two of the best choices for rental arbitrage top our list. The first one is:

    1. Tobin Hill
    Rental Arbitrage San Antonio

    According to Airbtics Dashboard, Tobin Hill is the top market to start your rental arbitrage business. There are more than 358 Airbnb listings with an average annual revenue of $31,291 and an occupancy rate of 56%.

    2. Mission del Lago
    Rental Arbitrage San Antonio

    According to Airbtics Dashboard, Mission del Lago is the second-best market to start your rental arbitrage business in San Antonio. There are more than 16 Airbnb listings with average annual revenue of $28,738 and an occupancy rate of 58%.

    Conclusion

    In summary, rental arbitrage in San Antonio can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners trying to be real estate players without spending millions.

    Leverage your rental arbitrage opportunities by using a free Airbnb Profit Calculator and determine the best areas that will bring long-term profitability!

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