- Check the Type 2 permit cap for the census block before writing an offer.
- Downtown, Southtown, and Fort Sam-adjacent are the real cash-flow zones.
- Underwrite at 55–70% occupancy, not Airbnb's fantasy projections.
- DSCR loans qualify against projected rents , get the right lender up front.
- Spend more on durable furniture, less on decor that gets destroyed.
The permit thing everyone gets wrong
San Antonio's STR ordinance uses two permit types:
You live at the property. Easier to permit, virtually no location restrictions.
Pure investment. Subject to density caps by census block group , where investors get burned.
Neighborhoods that actually cash-flow in San Antonio
Not every San Antonio neighborhood makes sense for STR. The ones that consistently do:
- Downtown, Southtown, King William , Riverwalk & convention demand
- Alamo Heights adjacent , executive travelers, medical center demand
- Medical Center , 30–90 day corporate & medical extended stays
- Near Fort Sam Houston , TDY military mid-week occupancy
- New Braunfels (Schlitterbahn corridor) , summer weekend premium
- Boerne , Hill Country wedding & getaway demand
Neighborhoods I steer investors away from: pure suburban HOA communities where STR is banned outright, and outer-loop areas where the nightly rate ceiling is too low to cover operating costs.
The real cash-flow math
The mistake I made on my first STR: I underwrote using Airbnb's own "projected" earnings tool. It was fantasy. Here's the framework I use now on every deal:
- 01Gross revenueNightly rate × realistic occupancy (55–70% for most San Antonio STRs).
- 02Operating costsUtilities, WiFi, streaming, partial cleaning fees, supplies, dynamic-pricing tools, maintenance reserve.
- 03Debt serviceMortgage PITI. Investor loans typically require a projected DSCR of 1.15+.
- 04Capex reserve5–8% of gross for the roof, HVAC, and appliances that will eventually need replacement.
"If the deal only pencils at 80%+ occupancy, it's not a real deal. Underwrite conservatively and let the upside surprise you , not the downside."
Financing an STR in San Antonio
Traditional conventional lenders will treat STR income as "$0" for qualification purposes unless you have a 2-year track record. This means most first-time STR investors either buy with a second-home loan, use a DSCR loan (which qualifies against projected rents), or house-hack a small multi-family with FHA.
The mistakes I made (so you don't have to)
I now check HOA docs and any pending amendments before every offer.
Margins were 30% lower than my spreadsheet said. I now build a real operating model with actual local cleaner quotes.
Replacement costs in year 2 wiped out the savings. Spend more up front on durable furniture and rugs.
"The best STR is a boring STR. Consistent 5-star reviews, minimal maintenance calls, steady occupancy. Chasing the flashy deal is how you lose your shirt."
Ready to underwrite something?
Send me the address or your criteria. I'll pull comps, real STR revenue data from my own tools, and a conservative cash-flow model. We'll figure out together whether the deal actually works before you spend money on inspection or appraisal.
Born and raised in San Antonio. Six years, $75M+ closed, 300+ families helped, and 5+ short-term rentals of my own. I write from what I've actually done, never from what a blog template told me to say.