The San Antonio Investor Deal Screener

What's inside

Eight local go/no-go rules — the same ones I use before writing an offer.

Every rule uses San Antonio + Texas Hill Country thresholds, so you're not underwriting on national defaults that are off by 15–25% on year-one cash flow.

1. 01

   Effective property tax load

   Underwrite 2.3%–2.9% of purchase price annually in Bexar / Kendall / Comal counties. Verify the ARB-assessed value, not list price.

   Why it matters — Texas has no state income tax — counties make it up on real estate. New investors who use national calculators with 1.1% defaults are off by 15–25% on year-one cash flow.

2. 02

   Insurance — wind, hail, wildfire

   Single-family: $1,800–$3,200/yr. Hill Country wood-frame: add 20–40%. Coastal-influenced or older roof: get a real quote before LOI.

   Why it matters — Hail belt + 2023–2025 carrier exits have repriced Texas insurance. National templates assume $900–$1,200 — that gap kills marginal deals.

3. 03

   Rent-to-price ratio (LTR)

   Target ≥ 0.8% monthly rent to all-in price for SA core. Suburbs and Hill Country typically screen 0.5–0.7% — appreciation play, not cash-flow.

   Why it matters — The classic 1% rule rarely clears in Texas right now. A clear-eyed ratio tells you which return profile you're actually buying.

4. 04

   Operating expense ratio

   Use 45–55% of gross rent for SFR; 50–60% for small multifamily; 30–40% for STR after cleaning/PM. Never underwrite below 40%.

   Why it matters — Most beginners forget capex reserves, leasing fees, and turnover. Conservative OpEx is the difference between cash flow and a slow bleed.

5. 05

   Debt service coverage (DSCR)

   DSCR ≥ 1.20 at today's rate to qualify for non-QM. Owner-financed and house-hack deals can stretch lower if you have W-2 cushion.

   Why it matters — Lenders price up sharply below 1.20 and won't quote below 1.00. If your screener shows < 1.10, the financing math is already telling you no.

6. 06

   Cash-on-cash return (year 1)

   Green ≥ 8%, Yellow 5–8%, Red < 5%. For appreciation submarkets (Boerne, Stone Oak, Alamo Heights, Fair Oaks), 4–6% can still be a buy if comps support 4%+ appreciation.

   Why it matters — Anchors the deal in cash you actually receive, not paper wealth. Forces you to subtract reserves and leasing fees from rosy listing pro formas.

7. 07

   STR / regulatory risk

   Verify city rules before underwriting STR income: San Antonio (Type 1/Type 2 permit + density caps), Fredericksburg (capped + zoned), Wimberley & Canyon Lake (HOA + county overlays), New Braunfels (active enforcement). When in doubt, underwrite as LTR and treat STR upside as bonus.

   Why it matters — STR pro formas are the #1 source of bad Hill Country deals. Rules change yearly — yesterday's $90k revenue can be tomorrow's $32k cap.

8. 08

   Exit liquidity & comps

   At least 6 arms-length sold comps within 1 mile / 90 days for SFR; 12 months for 2–4 unit; broker opinion + DOM trend for small commercial / land.

   Why it matters — If you can't model an exit, you can't size your risk. Thin comp pools (rural Hill Country land, niche commercial) demand a wider margin of safety.