For non-commercial residential (i.e., fourplex or smaller) in Killeen, I typically start with a vacancy rate of 2 months (~15%) and adjust up or down based on the specific property. That's roughly what I've seen on my slightly-above-average fourplex there.
For non-commercial residential (i.e., fourplex or smaller) in Killeen, I typically start with a vacancy rate of 2 months (~15%) and adjust up or down based on the specific property. That's roughly what I've seen on my slightly-above-average fourplex there.
Rental Property Investor · Cedar Park, TX · Member since 2017 · 59 posts · 51 votes
8y
I am also interested in the Killeen/Belton area and have been looking at that area for some time. There seems to be a large number of multifamily on the market there, which makes me a little nervous. Did they over build or is there something else going on there?
Are there other BP members that can chime in on their experience in that area. Not trying to hijack this thread, but I would also be interested in average tenant turnover.
Residential Real Estate Agent · Dallas, TX · Member since 2013 · 232 posts · 173 votes
8y
@Bryan Petrinec - Actually, multi-family (Fourplex and duplex) inventory is WAY down just in the last six months in our area. There used to be 100+ duplexes and 40+ fourplexes active at any given time. Those numbers are now half that. I'm having a MUCH harder time finding quality fourplexes and duplexes for sale recently, and have been lucky to find a couple off market or pre-listing ones, recently.
@John Moseley - 2 month's vacancy like what @David Ivy mentioned is certainly possible depending on the time of the year - even longer with some bad luck, poorly marketed or properties in sub-average condition. The median for properties on the MLS between listing and leasing is 40 days. But that math also doesn't take into account the average tenant duration. Conservatively, I would guess 2 years as the average duration, meaning 40 days / 720 days = 5.5% vacancy rate. That is actually fairly consistent with what I've observed with my own fourplex. However I recommend to my investors to plan on 8% vacancy.
The US Census, I believe, calculates our area's vacancy rate at 10%, but I believe their numbers include properties that are not for rent or for sale, which really shouldn't count, so anything higher than 10% seems really high and would indicate something is wrong with the property, not the market.