Killeen Texas four-plex trends

[Vikas Raoot]

I am looking into some of the four-plex properties listed on mls in Killeen Texas and it seems based on the rent rolls provided for some of themthey are following the 1% rule. However I wanted to know from folks familiar with that market if this is enough of a margin to bear with or should one be expecting higher economic vacancies, longer turnover times etc which would reduce this margin considerably? I am looking into the 76549 zip area and if you have any feedback about it , I would really appreciate that. Thanks!

[Pete Harper]

@Vikas Raoot

You can certainly find 1% deals in Killeen. Prices are going up with a lot of out of state money moving in. Be prepared to pay over asking price to get a quality property. I own a 4-plex in Killeen as well as two other markets in Central Texas. Compared to other rental markets, Killeen rents tend to be lower. A 2BR in Killeen rents for $650, similar unit in Bryan/College station rents for $750. Vacancy rates are similar. You need to pay attention to neighborhoods in Killeen. A block or two make a big difference. Look at Trulia crime maps as a rough guide. I would highly recommend driving around to get a feel for the area before buying. You also want to factor in risk of single employer with Ft Hood.