Kileen multi-family risk

10 Replies

I recently moved to Waco and have noticed that on paper the Kileen multi-family market looks good. I hear it is really rough as far as crime and drugs. I’m curious as to the experiences of investors in this area. Are these areas dependable for keeping tenants that pay and don’t trash the place?

@Chad Trail , what you heard seems to be in line with what the data is showing. 

The core of Killeen seems to be composed of mainly D/F grade areas. 

This suggests that you may have a heard time finding tenants that meet a certain standard and that will stay long term. 

That being said, the outer areas surrounding the central core are C/B quality and may be a better bet for finding quality tenants. 

Chad, we recently purchased a 4-plex in Killeen that is working out well for us. Like any area Killeen has its good an bad areas. We looked at a number of D-class properties before we figured out the better areas. Since you are local I would suggest you do some drive by appraisals to get a feel for the area.  Trulia also has crime maps that seem fairly accurate. You will be amazed how one or two streets over makes a huge difference. 

@Chad Trail

Drive through it. Grab lunch and park in a neighborhood and eat your lunch one day. There's bad, then there's doable bad lol. It's a mix bag. Killeen has a bad rep, for good reason, but there's good areas too.

Originally posted by @Art Perkitny :

@Chad Trail , what you heard seems to be in line with what the data is showing. 

The core of Killeen seems to be composed of mainly D/F grade areas. 

This suggests that you may have a heard time finding tenants that meet a certain standard and that will stay long term. 

That being said, the outer areas surrounding the central core are C/B quality and may be a better bet for finding quality tenants. 

 If somebody from Cleveland calls Killeen "Bad", you'd better listen. ;-)

@Chad Trail

Here is an example of the Trulia crime map for Killeen/Harker Heights. The dark blue areas have higher crime rate. As you can see the high crime areas are very localized. If you zoom in you can identify blocks or even specific properties. The old down town can be a little rough but South of I14 or East towards Harker Heights are better. Our property is East on the border with Harker Heights.

https://www.trulia.com/p/tx/killeen/605-607-atkinson-ave-killeen-tx-76541--2405334536#lil-crimeTab

@Pete Harper thanks! That helps a lot.

I just moved to Waco from Houston and made a decent profit on my house in Houston. In the next few months I’m either going to look for a good cash flow property or looking at a small business for my wife to run since our daughter starts kindergarten in the fall. That business could fund faster real estate purchases.

Originally posted by @Chad Trail :

@Pete Harper thanks! That helps a lot.

I just moved to Waco from Houston and made a decent profit on my house in Houston. In the next few months I’m either going to look for a good cash flow property or looking at a small business for my wife to run since our daughter starts kindergarten in the fall. That business could fund faster real estate purchases.

what brought you to waco from Houston?

@Chad Trail I currently live in Killeen and I'm actually doing a rehab for a BRRRR here now. It's literally just like any other area, good and bad parts. I bought a duplex in a C area and I have a really quite tenant in the side that is filled that I'm hopeing stays for ever and I actually met the people that will hopefully be moving into the other side once it's complete. Yes, it is a military town so you do have the ability to get your stuff messed up but I think it's all about tenant screening and looking for the right area to purchase in. The biggest concerns for me from I have seen have been the insane taxes and concerns about high turnover due to it being a military town.

@Mark Kelly no I didn’t purchase real estate. I learned the company I was working for was in very poor financial health and I decided to buy a business instead. Management was already in place so I ran it as semi-absentee until January when my job company couldn’t make payroll.

I’m hesitant about student housing because they leave in the summer. I also saw my alma mater, University of Kentucky, obliterated the student housing market by building enough apartment style dorms for almost all students.

I’m still looking for opportunities for either real estate or business acquisition.