CAUTION ZONES

ZIP Codes to Avoid or Approach Carefully

Not every deal is a good deal. Learn which areas in San Antonio present higher risk and why.

Why This Matters

Getting a property under contract in a bad area means one of two things: (1) you can't find a buyer and the deal dies, or (2) you find a buyer who backs out after seeing the neighborhood. Either way, you've wasted time and damaged seller trust. Know your caution zones.

HIGH RISK

78207 - West Side / Prospect Hill

$95K

Median Price

$135K

Median ARV

45+ days

Days on Market

Why It's Risky:

High crime rates - property crime and violent crime both elevated
Limited buyer pool - most investors won't touch it
Slow appreciation - values have stagnated for years
Difficult tenant management - high turnover, evictions common
Insurance costs significantly higher

The Exception:

Some blocks near the Pearl District / Tobin Hill are gentrifying. But you need VERY specific street knowledge. When in doubt, skip it.

HIGH RISK

78228 - West Side / Culebra

$115K

Median Price

$160K

Median ARV

40+ days

Days on Market

Why It's Risky:

Very mixed neighborhood - good blocks next to bad blocks
School ratings are poor (2-3 out of 10)
Flippers avoid it - hard to sell renovated homes at ARV
Rent collection challenges reported by landlords
Older housing stock with deferred maintenance

The Exception:

Areas near Jefferson High School and closer to 410 have shown improvement. Experienced landlord buyers ONLY - not for flippers.

MODERATE RISK

78237 - Southwest / Lackland Area

$130K

Median Price

$175K

Median ARV

30 days

Days on Market

Why It's Tricky:

Military rental market - good demand but Section 8 heavy
Tight margins - low ARVs mean slim wholesale fees
Appraisal issues - hard to justify rehab costs
Flood zones near creek areas

When It Works:

Landlord buyers who specialize in Section 8 or military housing do well here. Market to your Section 8 buyer list specifically.

MODERATE RISK

78220 - East Side / Kirby

$140K

Median Price

$185K

Median ARV

35 days

Days on Market

Why It's Tricky:

Perception problem - East Side stigma limits buyers
Very pocket-specific - some blocks great, others not
Older infrastructure - sewer/plumbing issues common

When It Works:

Areas near Fort Sam Houston are improving rapidly. If you can verify military proximity and good schools, it can work for landlords.

How to Handle Calls from Caution Zones

Get the Exact Address

ZIP codes are too broad. The specific street matters enormously.

Check Google Street View

Look at the subject property AND surrounding houses. Bars on windows? Abandoned homes? Pass.

Run Comps BEFORE Making Offer

Don't get excited about a "cheap" property. Make sure recently SOLD comps support your ARV.

Ask the Team

When in doubt, flag it in the team chat. Someone may have experience with that specific area.

Key Takeaway

It's better to pass on 10 deals in bad areas than waste time on 1 that won't sell. Your time is valuable - spend it on properties your buyers actually want. When you see 78207, 78228, or deep West/East Side addresses, proceed with extreme caution or just move on to the next lead.

78245 Northwest

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