Investing In Killeen TX

[Federico Portalupi]

What's Up BP Peeps, 

I am a new investor just 2 weeks from closing on my first duplex in Killeen TX.  Every post I read on this city is a up and down of good and bad. I wanted to create a discussion where some "pros and semi pros" could chime in with valuable input and some newbs can comment/learn from the advice provided. 

I am purchasing a property with in the 76541 Zip code which seems to be a bit lower class neighborhoods 

Harker Heights seems to be the Up and coming place but everything, as far as I know, is  military dependent... which I don't have a problem with as I see a rental opportunity heaven even if the turn over is every few years. 

A little about me: My name is Federico Portalupi and I work Retail management full time, I have been with Mattress Firm for 9 years and I love my company but I think creating multiple revenue streams is important especially at the age of 33. I am young enough, I have a killer work ethic, I am a workaholic which doesn't help my sleepless nights on real estate self development ( podcasts, books, YouTube videos)and knowledge.

Alright everybody, I have decided that multifamily will be my focus and I have centered in the Killeen Area and sorroundings... any comments, suggestions, potential partnerships, advice- I WILL TAKE IT ALL- 

Thank you for spending your time commenting on this thread- 

[Joe Scaparra]

Ok my two cents on Killeen.  If you live in or near Killeen and have a good feel of the area, you could probably do ok there.  Here is the problem with Killeen.  There is too much starter (first time buyer homes) homes built there and the inventory keeps growing.  Housing is dirt cheap in the Killeen area for a reason.  There is too much of it and it keeps growing.  Homes will be slow to appreciate and rents will constantly be capped because of sooooooooooooo much inventory.

Why so much inventory? Because of the VA loan. Young soldiers are finding out that they can buy with no money down and pay a lower mortgage than rent, especially if they get a roommate. So they buy with no money down because they have NO MONEY to put down. Then they rotate out in a year or two and can't sell their house. So they rent it and use a property manager. The property is not cared for, repairs slow to be made and then it goes empty for a few months and they sell at a loss. This will keep real estate prices low and rental rates from growing.

New starter subdivisions pop up all the time as soldiers love to buy new and developers know how to market their products, been doing it for years.  Contrast this with Austin, not enough starter homes built causing real estate prices  and rental rates to climb extraordinary fast!

Now that being said, a savvy investor, who can buy right and keep his property looking good and knows Killeen could probably do fine, but the competition for renters will be intense. Just my two cents, from a retired military man who has never used his VA loan. Cheers!