How is Killeen/Temple Market for rentals compared to Austin

Question

I have been trying to find a rental in Austin and numbers are way off. Thinking of moving to nearby cities. What is your experience of this market as well as Temple.

Travis Timmons · Answer

I'd rank Belton first, Temple 2nd, and Killeen 3rd. We own a mid term rental in Temple that has performed very well. The area is growing like crazy and there simply is not enough housing. HOWEVER, it's primary appeal is affordability rather than being a great or cool place to live. Our Temple property is the only one that I own that does not pass that "Would I want to live there?" test. It's the sort of market that passes every metric or test when you start doing research, though.

You can't deny the job and population growth, though. You just really need to know the street by street details. It can be pretty rough - especially in Killeen. And make sure you drive by prospective properties at night.

I do have a few good contacts there. Please send me a DM if you want me to pass those along.

Taylor Dasch · Answer

I am a realtor here and if you are looking for cash flow and appreciation, it seems to be the place to go. Killeen is better for cash flow. Belton is good as well but there arent as many deals that come up in Belton.

Matthew Doerbaum · Answer

This Killeen/Belton/Temple market definitely has potential for investors. My family has a property management company here that serves 1,800+ units. In the past 3 months, I have been getting calls from several investors interested in apartment complexes. The current owners have extremely low occupancy and are open to selling. However, they are still expecting Covid real estate prices.

The obvious question you might have is, why the low occupancy? I have 2 factors that I know play into it, but there's always more beneath the surface. First, is poor management. When doing recon at the property before accepting it, we speak to tenants who complain heavily about the property manager. Second, this market is connected to Fort Cavazos. There are rotations that happen every year, where soldiers leave for the next station and then the next batch comes in soon after. But this year it felt like more were outgoing than there were incoming. Which contributes to the higher inventory right now. My contacts say we should be getting a good size incoming rotation soon.

Travis Timmons · Answer

@Joe S. We lived in Texas for 13 years and just moved up to Maine in June of this year. I would scratch my head as well if I saw some guy from Nowhere, Maine talking about a sub-market in TX as well.

Tatum Littleton · Answer

I agree with @Taylor Dasch and @Travis Timmons! It has great potential and the ability to cash flow nicely. Knowing the three cities mentioned is important for grading the neighborhoods and can vary street by street. I believe Travis' ranking is spot on and how I would rank them. Growth is awesome in this area as well as up and down I35 to San Antonio even. I would encourage you to look outside of Austin since going there shouldn't be too difficult if you need to do something in person, you can even drive some of the areas yourself and do your own evaluation of it.

Good luck!

Sandeep Dhall · Answer

Thanks for advice especially driving by night!

Ryan Kelly · Answer

@Sandeep Dhall we own long-term rental properties in Austin and Temple and know both markets well. Temple is not part of the Austin metro area, but within a long commute range for a few. Most Temple residents live and work in Bell County. Happy to connect and talk numbers if interested.

How is Killeen/Temple Market for rentals compared to Austin

How is Killeen/Temple Market for rentals compared to Austin

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