I am local here in Killeen. The MF scene is pretty decent. I think the 4 plex apartments are a little more volatile than the duplexes in the area. I just bought a 4 plex and did some rehab then sold it. They are here, and another good thing is the transient military population always bring in new renters.
I am local here in Killeen. The MF scene is pretty decent. I think the 4 plex apartments are a little more volatile than the duplexes in the area. I just bought a 4 plex and did some rehab then sold it. They are here, and another good thing is the transient military population always bring in new renters.
You being from San Antonio, you probably know that there is another BRAC Commission expected which may change the values drastically. The Killeen market is completely dependent on Fort Hood troop levels. You might want to consider the North side of the base near the SpaceX facility.
If BRAC and single-industry towns is a concern, I can't imagine McGregor would allay that - as it is a tiny town that just has SpaceX. The Killeen area has a better chance of economic diversification in the near future with the designation of Interstate 14 and a larger workforce and lopsided renter-heavy market.
@Brian Adams I think the difference is the amount of change possible. I think there is more potential downside in Killeen. In short, it is much more likely to have a MAJOR price drop in the next two years.
I see. However I am very shy when it comes to small towns. I don't know where you are hearing anything about a major drop - there is one proposal yet to be presented to Congress to initiate a BRAC commission, but it would likely be less severe than the previous one that already took effect, and, if it impacted Fort Hood at all, would almost surely not be considered "major", but rather a small, single digit % reduction. Whereas with McGregror, if SpaceX moves out, it could easily be the entire SpaceX company - 100% - and then you're stuck with rental investments in a small Texas town with 0% growth (though I should caveat I don't know that much about McGregor).
I think any major price drops in the Fort Hood area (the soonest BRAC would hit, if it even happened, would be 2021, and would surely be minor as was the last one) would be the result of national trends like spiking mortgage rates, a recession depressing would-be-homebuyer earnings, potential tax reform disruptions or issues with the Fannie Mae/Freddie Mac conservatorship.
@Brian Adams I have not heard anything about a major cut in troop levels. My point is that it is possible and that would have a major impact on Killeen. A major deployment can also have a major impact.
I find it far less likely that SpaceX will move than one of those things happening.
Long term... as long as NAFTA stays in place and the population keeps increasing the area will be fine.
I should have also been more clear. Most people in McGregor work in Waco. I just mentioned the SpaceX facility for location purposes.