Investing in SFR in Killeen, TX

[Tirtha Mitra]

Hello everyone, I’m looking at investing my first rental property in the Killeen, TX area. I’ve a couple other properties in Texas but not in Killeen or Austin. What are your thoughts regarding the market? I’m mainly looking to buy and hold for long term. 

The property I’m looking for cash flows but not crazy. If the inspection report comes in good, and the capex isn’t huge, it’ll probably be good for long term. But I’m not sure how the appreciation historically has been in this area? Do you think because of its proximity to Austin, in a few years- we’ll see higher than historical appreciation? It’s still an hour away from Austin so not sure how that’ll work out.  

Also, what are your thoughts on renters here- like median income, education level, stable jobs etc…? Neighborhood safety? 

[Ryan Kelly]

@Tirtha Mitra Killeen is generally a lower income area with lower paying jobs and a transient population due to a huge percentage being in the Army at Fort Hood. It is also flooded with rentals due to active military using their VA loans to buy homes with almost no money down, then converting to rentals when they deploy or transfer to a new base. I would travel to Killeen first and do some solid networking with veteran investors in that market before jumping in.