Anyone have any insights on Multi-family investing in Amarillo?

Question

Hi All,

Does anyone have any insights on Multi-family investing in Amarillo Texas? I am looking to buy a multifamily property that primarily has studio apartments. Would it be easy to rent out? How's the tenant quality? How long would it take to rent out? How's the economy doing? Pros and Cons of the city would be greatly appreciated!

Collin Hays · Answer

Amarillo is booming. Yes, data centers are a part of it, but there is a lot going on economically across a broad spectrum.  Producer Owned Beef is constructing a large packing plant that will employee 1500.  Bell Flight is ramping up to produce the MV75 attack aircraft, which will replace the Blackhawk.  Production begins in 2028 and will run for approximately 25-30 years at a high pace.

Whether or not Fermi is successful, many millions have been spent on the land improving it, and should Fermi fail, you can bet a major hyperscaler will go in and buy it for pennies on the dollar.

Brandon Stewart · Answer

It’s a strong potential driver of housing demand, but not a guaranteed boom… yet.

If the project actually delivers jobs and attracts workers, Amarillo’s housing market will tighten, pushing up rents and home prices. Fermi’s stock recently tanked after losing a major funding commitment.  That’s not a deal killer — but it’s a sign the project’s timeline and scale could wobble. Amarillo doesn’t have a ton of shovel-ready land being developed right now, so capacity to absorb demand could be limited.

Brandon Stewart · Answer

I run Blaze Real Estate a property management company in Amarillo. The economy is strong here. The rental market has slowed in recent months but expected in winter. Our market picks up in March. We have many efficincies under management with a ~10% vacancy rate with prices ranging from 485-625 depending on location property quality and amenities. Feel free to call my office and speak with me if you want to look deeper.

Jacob Molina · Answer

So the economy there is solid. I am from there and am actually moving back. It is very stable and diverse. As far as renting, I'd say find a good neighborhood and do good tenant screening.
When it comes to finding the duplex and numbers working out, that one I can not answer.

Collin Hays · Answer

The boom is likely going to occur.  It isn't going to be contingent on Fermi's success or failure.  The land they are on is leased from Texas Tech University.  The land, about 6000 acres, has the DOE "good housekeeping seal of approval" (lay terms) for nuclear activity.  It is such because the Pantex plant, which assembles, disassembles, and reassembles nuclear war heads, is operating across the fence.

The DOE "Seal of Approval" means that much of the regulatory red tape to build a nuclear power plant has been cleared.  So the value is in the land.  Fermi doesn't own the land. If Fermi fails, there will be many suitors lining up to finish the power plant and the corresponding AI facilities.  I am an investor in Fermi, but it is purely a speculative play.  In the final analysis, there will be a massive power plant on this location, as well as corresponding AI storage.

Aryan Savani · Answer

Do you think the data center is going to have a huge impact on the housing?

Jonathan Soto · Answer

good area to buy. would love to discuss if you are looking for financing options

Anyone have any insights on Multi-family investing in Amarillo?

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