Some of this is true above, but not quite all of it. Firstly, why wouldn't investing for cash flow be a good long term wealth building strategy. Huh?
Definitely don't invest for appreciation in our market. I don't recommend doing that in any market. Recently, local home values have paced the inflation rate. But there are a lot of cash flow opportunities for buy and holders.
Duplexes in your price range are PROBABLY not great finds. I would target duplexes that rent for at least $750/unit, $1500 gross. These are buildings a quality property manager would take on. Most on the MLS at the moment that meet these criteria are asking between $140,000 and $160,000, so anything you can find off market for less is a deal, and likely 8% cap +.
The danger of deployments is almost entirely ameliorated by the Army's deployment timeline. 1CD has three brigades, and the post has several other large units like 3CR and III Corps HQ. The Army staggers these units' deployments, so that there is usually only one BDE gone at a time. That effect is already priced into the market. In the event of a war, more units would absolutely deploy - but units and training areas would also be expanded. There's a reason the area's population has grown 60% since the War on Terror began just 15 years ago.
That said, do plan on higher turnover due to PCS stations often lasting a mere 3 - 5 years, deployments and the like. And yes, while we certainly respect their service and sacrifice, military members can be just as bad tenants than any other tenant (said as a former Army CPT). I plan on but consistently beat a 10% vacancy rate with my fourplex. Just be very careful to buy the right kinds of buildings (e.g. no 2 bedroom SFHs, EVER).
Fourplexes are getting a lot of interest right now. I know many investors who BRRRR SFHs very successfully. Flipping in the area mostly sucks because of high homeowner equity, the VA loan's 100% financing, and stiff builder competition. I've had many inquiries about apartments but so far have been unsuccessful pinning down a nice C-B class building for the folks I've spoken with, unfortunately. They are building more apartments in Harker Heights.
And actually, I think targeting Killeen for a 1st investment is a relatively safe option, depending on your acquisition and marketing strategy. Price points are low, competition is not as fierce as Austin/San Antonio/anywhere else in Texas, and the rental market is strong (2/3 of residents are renters vs. 1/3 nationally). Getting a simple 8% cap rate is achievable for a newbie investor - not going to make you rich quick but a great way to get your feet wet.
I also highly recommend "house hacking" for locals willing to live in a multi-family with owner occupant financing.
