Killeen, Temple, Fort Hood

[Mike B.]

I need help understanding the Temple/Belton area. 

Some Background: We are still new at being landlords. I'm getting ready to rent my home to make our second SFR in Leander Texas. I'm only 35 minutes from Killeen/Temple area and can't help but feel like I'm missing out on an opportunity to redeploy our assets from Austin to an area that'll cash flow.

The Reson: I'm a government employee and need cash flow on anything that I buy. Most of these Austin properties are very expensive and need 40% down payments to break even. This Killeen/Temple area seems the only place nearby where 20% down can buy me something that works.

My thoughts on the Area: At first glance, Killeen and Temple honestly look like garbage cities that I wouldn't want to live anywhere near. However, I am starting to believe all the working-class people from the north Austin suburbs will be forced out by high rents and property taxes. If that holds true, I think they will need to live in Temple or Belton and commute down to north Austin. I'm not sure about Killeen itself. I think Temple/Belton is within an hour of anything in north Austin. 

Price Differences: If a worker can buy a house in Temple for $250,000 and drive 45 minutes south (to their job) into the Austin suburbs where houses start at $450,000 it just makes sense. If I'm working at a $15/hr to $20/hr job in north Austin Temple looks really nice. 

What am I missing? I am itching to sell/refi my suburban Austin rental and buy something to the north.