Investing in SFR in Killeen, TX

5 Replies

Hello everyone, I’m looking at investing my first rental property in the Killeen, TX area. I’ve a couple other properties in Texas but not in Killeen or Austin. What are your thoughts regarding the market? I’m mainly looking to buy and hold for long term. 

The property I’m looking for cash flows but not crazy. If the inspection report comes in good, and the capex isn’t huge, it’ll probably be good for long term. But I’m not sure how the appreciation historically has been in this area? Do you think because of its proximity to Austin, in a few years- we’ll see higher than historical appreciation? It’s still an hour away from Austin so not sure how that’ll work out.  

Also, what are your thoughts on renters here- like median income, education level, stable jobs etc…? Neighborhood safety? 

@Tirtha Mitra Killeen is generally a lower income area with lower paying jobs and a transient population due to a huge percentage being in the Army at Fort Hood. It is also flooded with rentals due to active military using their VA loans to buy homes with almost no money down, then converting to rentals when they deploy or transfer to a new base. I would travel to Killeen first and do some solid networking with veteran investors in that market before jumping in.

I have listed my rentals recently in Killeen, and currently demand is VERY high. I was able to increase the rent way above what I thought I would get. Historically appreciation and rent increases weren't great, but it seems things are catching up right now. I have no idea about the future.

Historically I've always steered out of town investors away from the area due to the low rents and low appreciation, but recently I've come around to the idea, although I believe it's still challenging. As others have implied, do your due diligence, but be aware that you may be taking on a low-wage job rather than high passive income.

I agree with @Ryan Kelly . Out of state investors looking in Killeen seeing the prices but not understanding the neighborhood is in for a rood awakening when managing it. Please do your due diligence.