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Updated 13 days ago, 12/13/2024
Is Killeen a good place to buy small multi-family rental?
I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.
Also, if there are other markets like or better than Killeen, can you please share?
Thank you.
Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town
Quote from @Steve Tse:
Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town
Thank you, Steve. That's very helpful. Do you have any suggestions on the right/wrong area in Killeen? I am specifically looking at zip codes 76543 and 76549. Thank you.
I am out Out of state investor so don't want to give you wrong information, my best advise is to find a local agent who knows the area and can help you better than me.
Killeen certainly has good investment potential. I work as a property manager in the area. Spanning from Copperas Cove to Killeen to Temple. My team and I manage 1,800 units which tells you there's good rental demand. We have access to all the maintenance contractors one might need during tenancy.
Now appears to be the start of a tipping point where people want to sell, but there aren't many buyers. As any savvy business person knows, when demand is low, prices should be low. I expect there to be excellent deals to be had in our market for those with the ability to buy. Finally, make sure to do your due diligence before purchasing in Killeen. Visit the location and ask questions to a property manager who will give you honest feedback.
Quote from @Steve Tse:
I am out Out of state investor so don't want to give you wrong information, my best advise is to find a local agent who knows the area and can help you better than me.
Understood, and much appreciated. Thank you, Steve.
Hi Jordan - we have heard great things about Memphis as a real estate market. Given our experience level, we are not ready to make an investment in a place that far away from home. Even Killeen seems too far, tbh. LOL! But, thank you for the tip. Maybe one day.
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.
Also, if there are other markets like or better than Killeen, can you please share?
Thank you.
Memphis, TN is a fantastic market for stable cashflow with some appreciation over time! Have you ever looked at Memphis TN?
Quote from @Sushil Iyer:
Hi Jordan - we have heard great things about Memphis as a real estate market. Given our experience level, we are not ready to make an investment in a place that far away from home. Even Killeen seems too far, tbh. LOL! But, thank you for the tip. Maybe one day.
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.
Also, if there are other markets like or better than Killeen, can you please share?
Thank you.
Memphis, TN is a fantastic market for stable cashflow with some appreciation over time! Have you ever looked at Memphis TN?
Hey Sushil, don't let distance stop you from building wealth. Their is always a team in every market that can help you build your portfolio even when your not "on the ground". I currently am helping alot of new investors like yourself buy out-of-state and they are very successful. Happy to provide you with references if you ever decide to try it out in Memphis TN. Goodluck investing!
- Jordan Ray
- [email protected]
- 662-642-1458
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
Hi Jordan - we have heard great things about Memphis as a real estate market. Given our experience level, we are not ready to make an investment in a place that far away from home. Even Killeen seems too far, tbh. LOL! But, thank you for the tip. Maybe one day.
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.
Also, if there are other markets like or better than Killeen, can you please share?
Thank you.
Memphis, TN is a fantastic market for stable cashflow with some appreciation over time! Have you ever looked at Memphis TN?
Hey Sushil, don't let distance stop you from building wealth. Their is always a team in every market that can help you build your portfolio even when your not "on the ground". I currently am helping alot of new investors like yourself buy out-of-state and they are very successful. Happy to provide you with references if you ever decide to try it out in Memphis TN. Goodluck investing!
Quote from @Sushil Iyer:
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
Hi Jordan - we have heard great things about Memphis as a real estate market. Given our experience level, we are not ready to make an investment in a place that far away from home. Even Killeen seems too far, tbh. LOL! But, thank you for the tip. Maybe one day.
Quote from @Jordan Ray:
Quote from @Sushil Iyer:
I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.
Also, if there are other markets like or better than Killeen, can you please share?
Thank you.
Memphis, TN is a fantastic market for stable cashflow with some appreciation over time! Have you ever looked at Memphis TN?
Hey Sushil, don't let distance stop you from building wealth. Their is always a team in every market that can help you build your portfolio even when your not "on the ground". I currently am helping alot of new investors like yourself buy out-of-state and they are very successful. Happy to provide you with references if you ever decide to try it out in Memphis TN. Goodluck investing!
Sounds good!
- Jordan Ray
- [email protected]
- 662-642-1458
Quote from @Sushil Iyer:
Quote from @Steve Tse:
Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town
Thank you, Steve. That's very helpful. Do you have any suggestions on the right/wrong area in Killeen? I am specifically looking at zip codes 76543 and 76549. Thank you
76542 is going to be the best zip code to be in. 76543 you are going to want to tread carefully and be sure to check the specific neighborhood and street you are looking at. 76549 has 2 divisions that are very different. North of Stan Schluter Loop you have older homes and multifamily properties. And south of that street is going to be newer, larger homes, a tier up. 76542 is actually very similar to that general rule as well.
@Jordan Ray stop spamming this thread. Nobody said anything about Memphis.
@Sushil Iyer we lived in Texas for about a dozen years and still have property there - one of which is a mid term rental in Temple. My ranking on the area is Belton, Temple, then Killeen. Killeen is rough. That's not to say you can't do well there, but I'd encourage you to look at Belton and Temple (which can also be very rough and block to block) rather than Killeen.
The good news is that there continues to be serious population and job growth in the area.
Quote from @Matthew Doerbaum:
Quote from @Sushil Iyer:
Quote from @Steve Tse:
Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town
Thank you, Steve. That's very helpful. Do you have any suggestions on the right/wrong area in Killeen? I am specifically looking at zip codes 76543 and 76549. Thank you
76542 is going to be the best zip code to be in. 76543 you are going to want to tread carefully and be sure to check the specific neighborhood and street you are looking at. 76549 has 2 divisions that are very different. North of Stan Schluter Loop you have older homes and multifamily properties. And south of that street is going to be newer, larger homes, a tier up. 76542 is actually very similar to that general rule as well.
Thank you, Matthew. This is very helpful.
Quote from @Travis Timmons:
@Jordan Ray stop spamming this thread. Nobody said anything about Memphis.
@Sushil Iyer we lived in Texas for about a dozen years and still have property there - one of which is a mid term rental in Temple. My ranking on the area is Belton, Temple, then Killeen. Killeen is rough. That's not to say you can't do well there, but I'd encourage you to look at Belton and Temple (which can also be very rough and block to block) rather than Killeen.
The good news is that there continues to be serious population and job growth in the area.
Thank you, Travis. Much appreciated.
@Sushil Iyer I agree with @Travis Timmons that Temple and Belton are generally better pics with a more diverse economy versus Killeen. I personally own single-family rentals in Temple. Killeen and Harker Heights do have some good spots and various multifamily options. I personally would avoid the older neighborhoods closer to the post.
- Ryan Kelly
Quote from @Ryan Kelly:
@Sushil Iyer I agree with @Travis Timmons that Temple and Belton are generally better pics with a more diverse economy versus Killeen. I personally own single-family rentals in Temple. Killeen and Harker Heights do have some good spots and various multifamily options. I personally would avoid the older neighborhoods closer to the post.
Thank you, @Ryan Kelly. Very helpful.
IMO killeen is a solid investment. just have to watch which areas you are getting into. there are some pretty rough areas near fort hood but killeen is great because it is close enough to austin and people commute from there to austin as well. with fort cavazos near by and the new samsung plant coming online in taylor, it is a solid choice with steady demand for MF.
Quote from @Robby Sanchez:
IMO killeen is a solid investment. just have to watch which areas you are getting into. there are some pretty rough areas near fort hood but killeen is great because it is close enough to austin and people commute from there to austin as well. with fort cavazos near by and the new samsung plant coming online in taylor, it is a solid choice with steady demand for MF.
Thank you, Robby. Much appreciated.
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
I have not invested in Killeen myself, although I have considered it. I've been a few times to Killeen, Belton, CC, Temple area looking at potential purchases before I gave up. Maybe every city is like that, but for me more than almost any other city I have been too I think you really have to know the area and have to know the tenant base. Prices did seem better than DFW, but about 5 years ago when it was on my radar, I never found an area where I thought there was good balance. Lots of the properties I looked at were not treated nicely by the tenants. At that time it seemed like there were a lot of investors who had given up.
That is not to say there is not opportunity there, but I could tell for me as someone who did not know the cities and tenant types well, it was probably going to be a lot of work for me to be profitable. I know there are successful investors there.
I have a couple of great realtor/investors that work that market hard if you need great boots on the ground. One is Army vet.
One thing just to keep a pulse on is base closures and cutbacks. I doubt Cavaozs is on the cut list any time soon if ever. However you do have a new government that seems committed to cutting costs, cutting defense spending, and getting us out of wartime efforts. So you want to keep a good insight to that and what kind of economic changes that could bring. Could be tough for the area, but also might be a great opportunity too for some large manufacturing facilities to go in there or logistics operations with all that land and location.
Good luck and best wishes.
#4 Managing Your Property Contributor
- Rental Property Investor
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#4 Managing Your Property Contributor
- Rental Property Investor
What is it that you believe Killeen offers that you cannot duplicate in the DFW metroplex?
I'm trying to understand... you're doing well in a huge market. Just keep on doing what you're doing. Keep your assets close.
Quote from @Bruce Lynn:
I have not invested in Killeen myself, although I have considered it. I've been a few times to Killeen, Belton, CC, Temple area looking at potential purchases before I gave up. Maybe every city is like that, but for me more than almost any other city I have been too I think you really have to know the area and have to know the tenant base. Prices did seem better than DFW, but about 5 years ago when it was on my radar, I never found an area where I thought there was good balance. Lots of the properties I looked at were not treated nicely by the tenants. At that time it seemed like there were a lot of investors who had given up.
That is not to say there is not opportunity there, but I could tell for me as someone who did not know the cities and tenant types well, it was probably going to be a lot of work for me to be profitable. I know there are successful investors there.
I have a couple of great realtor/investors that work that market hard if you need great boots on the ground. One is Army vet.
One thing just to keep a pulse on is base closures and cutbacks. I doubt Cavaozs is on the cut list any time soon if ever. However you do have a new government that seems committed to cutting costs, cutting defense spending, and getting us out of wartime efforts. So you want to keep a good insight to that and what kind of economic changes that could bring. Could be tough for the area, but also might be a great opportunity too for some large manufacturing facilities to go in there or logistics operations with all that land and location.
Good luck and best wishes.
Thank you, Bruce.
Quote from @Melanie P.:
What is it that you believe Killeen offers that you cannot duplicate in the DFW metroplex?
I'm trying to understand... you're doing well in a huge market. Just keep on doing what you're doing. Keep your assets close.
Geographic diversity without needing to go too far away from DFW, would be my answer. Also, price-wise, a 4 or 4+ unit property in Killeen appears to be less expensive than a comparable one in DFW. I recognize that the cost benefit may be negated by other challenges; hence, my question. The responses from this group have been incredibly helpful.