My Thoughts On The Temple, TX Market

[Taylor Dasch]

Hey guys, I wanted to type my thoughts out on the market here in Temple for investment opportunities.

I work as a REA here in Temple and putting the time in prospecting has opened my eyes to the appeal it has to investors such as myself.

#1- The biggest opportunity in this market in my opinion is the opportunity to invest in STR and MTRs - your target market for these is traveling nurses and doctors who have a higher budget and will be using the property for Rest and Relaxation after a shift at the hospital. The reason this is appealing to me as an investor in Temple is that the perfect homes for these are right next to the hospital(The South odd numbered streets). The properties there are smaller and built in the 1950s so most of them need updating. Also with the target market being the hospital, the STRs and MTRs have not taken a dip with the recession because the hospital workers are still working and they will always be bringing nurses and other hospital staff to the area.

#2 - The options for back up plans are great. You can update these properties with higher end finishes to ensure that you beat the competition in the STR and MTR market. But even if the STR ends up being too much work, you will still get great monthly cash flow and cash on cash return as a LTR. Flipping in the South odd numbered streets would be the last option for me but you would still get a great return. An example on my first actual rehab: PP:125k(On MLS), 45k rehab, 165k total ( not including closing costs) This property is rented out for $1500/month right now, and is definitely a great lesson because I over rehabbed it for a LTR. I could and will get $1600/month for it. It is currently cash flowing $600/month. If I were to flip it, the ARV would be around 205-215. I could have done way better on this deal by doing less of a rehab but lesson learned, I still get great cash flow and always have the back up plan to sell.

#3 - Each area has a different avenue that investors can capitalize on.

South Odd numbered Streets: STR and LTRs, Excellent cash flow, less appreciation, less profit on a flip.

Historic District - Opportunity for Great Cash flow( Multiple units), great profit on a flip, the downside is that some areas are run down right outside the historic district.

Canyon Creek / Western Hills - Perfect for Flips, 1970-1990 properties that need to be updated, desirable area for a "forever home", Opportunity to make a very good return on a flip, A higher PP means less cash flow but will likely have less vacancy and a more stable tenant, less opportunity for MTR or STR although this is still a good area to try it.

There are many more great areas but these are the three that I choose to actively pursue.

#4 - A healthy mix of cash flow and appreciation - You go to Austin and will probably get a lot of appreciation but a higher cost of entry, Killeen will produce more cash flow but less appreciation, Temple has had healthy appreciation but leans more towards the cash flow side which is what I am going after - the appreciation is just an added benefit.

There are a few places that are just bad in Temple but for the most part I really like the area for investing. Do yall have any markets that are similar to this?