Would This Be a Good Flip or Rental in Killeen?

[Uzoigwe Obi]

Hey everyone, I came across an off-market deal in Killeen, and I’d love to get some insights from experienced investors. I’m trying to determine whether this would work better as a fix-and-flip or a buy-and-hold rental.

Here are the numbers I’m looking at:

• ARV (After Repair Value): $1,500,000

• Purchase Price: $1,050,000

• Estimated Rehab Costs: $100,000

• Current Lease Terms : 10,000/month

The Multi-Family is a 32 bed, 18 bath, 12,632sq. ft. home in Killeen, a solid rental area. Rental numbers seem promising.

Appreciate any thoughts

[Frank Huang]

Hey Uzoigwe,

This is an interesting project, so I ran it through our system as an exercise.

The first step was straightforward—I copied and pasted your question into our system. The quick takeaway: The spread between your all-in cost ($1,150,000) and ARV ($1,500,000) gives you about $350,000 in equity after repairs, which is significant.

I was surprised that our system initially categorized the property as a potential group home or assisted living facility.

Of course, I didn’t stop there—your core question of whether to hold or flip remained unanswered. So, I factored in the current cost of capital, using today’s T-bond rate + 200 bps as a starting point.

The system recommended a buy-and-hold strategy based on strong cash-on-cash returns and consistent cash flow. The biggest risk for a flip is the speed of the value-add execution and the potential for rehab cost overruns.

I wasn’t entirely satisfied with the system’s “specialty asset type” assumption, so I pulled more rental market data from Redfin for Killeen and also attached the property photo you provided to refine its understanding of the project.

Even with the updated inputs, the system still leans toward buy-and-hold. Here’s why:

1. The property already generates strong cash flow at $10,000/month

2. Financing terms for multi-family are typically favorable, especially with established income

3. Renovations can be phased in systematically while maintaining partial occupancy

4. Multi-family properties in military markets like Killeen tend to have stable demand

5. Long-term appreciation and equity buildup provide strong wealth-building potential

Overall, this is a fascinating project in a unique market (and quite fun to do a quick research!)—I didn’t realize Killeen was a military hub until seeing your post! Seems like a great deal!