No single ticker was named. Rates & bonds ETFs are one way for retail investors to get exposure. Not a recommendation.
Multifamily value-add opportunities in distressed San Antonio
The guest argued that the current cyclical downturn in San Antonio's multifamily market presents attractive entry points for value-add acquisitions despite high vacancy rates and oversupply.
The argument
The guest noted that San Antonio is experiencing a bust cycle characterized by high concessions, low occupancy, and distressed lender-owned (REO) properties. However, because renters in San Antonio are less rent-burdened than in markets like Tampa, and high interest rates make buying a home significantly more expensive than renting, long-term demand remains structurally sound.
The thesis, stress-tested
✓ What validates it
- ✓Stabilization of occupancy rates in the San Antonio metro area
- ✓Reduction in rental concessions offered by competing properties
▸ Risks discussed
- ▸High vacancy rates and concessions in the short term
- ▸Oversupply of multifamily units due to cheap historical debt
- ▸Risk of tenants leaving to purchase homes if affordability dynamics shift
Hear it yourself
"But I think we all agree, like, they're gonna be there, and they're gonna come they just keep getting more options with REO and and what lenders wanna take back or when people's debt cycle is over."
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