Killeen Multi-family (Out of state investor)

[Account Closed]

Greetings,

I am an out of state investor looking into the Killeen, TX market specifically a 26-unit for sale. I am in a 1031 exchange and seeing more doors compared to where I live in Utah. My question for existing investors in the market is how has your experience been and is supply keeping up with the demand? The complex I'm looking at is 100% occupied and turn-key for the most part. I'm planning to hold for 5-10 years. Also, what is the nearest metropolitan/ tertiary market in the area?

Thanks,

Henry

[Derek Harris]

Ensure you do a proper due diligence. I found the book The Due Diligence Handbook for Commercial Real Estate by Brian Hennessey to be very insightful. Just keep in mind that some deals sound too good to be true for a reason. I am very familiar with the Killeen market. I was in the same situation as you and found a killer deal for an apartment complex with 100% occupancy. On the surface, everything looked great. However, after further investigation and digging into the actual numbers (by linking up with the prop mgmt company), most of the numbers were false. Although it was 100% occupied, about 30% of the tenants consistently did not pay rents. Again, due diligence is key!