Killeen-Temple Fourplexes and Duplexes | 2024

It's been six years since I wrote about what to expect buying a fourplex in the Killeen-Temple area. 

A lot has happened since then. 

To start, I've created a report on the trends, numbers, and underwriting expectations when buying a Killeen-Temple 2 unit or 4 unit building:

Killeen-Temple 2-4 Family 2024 Report

I will share some of the highlights here!

Duplexes

Killeen-Temple Duplex owners watched their values skyrocket in 2021 by over $100,000 overnight! 

Deals might be hard to find. Here is a sample underwriting I did on a typical duplex that is currently active at 4208 Elms Run Circle, Killeen, Texas 76542. 

It works out to a negative IRR. So, basically an appreciation play. 

There are a significant number of house hacking duplex buyers. VA financing is more common than cash purchases for area duplexes in every year save 2021.

If you are interested in a Killeen-Temple duplex, you're likely best off coming to it as a house-hacker.

Rents will likely continue to rise and catch up to prices, but it's also possible prices drop for the rest of the year and you may be better off waiting for the dip. 

I personally would target duplexes anywhere in Harker Heights or Copperas Cove, as well as duplexes built since 2000 in Killeen, if you can find a price that works. 

As other parts of town improve, you might take a gamble on older duplex units for the price if you have a ready property manager in the area. The 76541 zip code is old Killeen and typically been neglected as it was easier to build new, but now that prices are up, there are increasing opportunities for value-add investments on the north side of town.

Fourplexes

If duplexes are looking scary for would-be investors, fourplexes may come to the rescue!

It seemed like fourplexe prices wouldn't stop rising. But then they did, right around the $400k mark. 

Volume has decreased as well. Owners who wanted to get their equity did so, and the rest are either new buyers since 2021 who have no equity or owners who are happy to watch rents creep up. 

Other fourplex sellers are choosing not to sell, even after trying. 2 in 5 fourplex listings failed to sell at all during the listing period, the highest ratio since 2016. Unable to get the prices they want, fourplex owners are sitting on the rental income instead.

Fourplexes are different from duplexes in that they are not being built in the area. The youngest fourplexes are more than a decade old. Supply is essentially fixed. 

A sample underwriting returned a slightly different result than with the duplex, with a 6% levered IRR on the active fourplex at 4001 Nadine Drive, Killeen, Texas 76549, assuming it is slightly overpriced, asking $425,000. 

Because new fourplexes are not being built, my advice remains unchanged from my original essay on the type of building and areas you want to target. The preferred fourplex is the townhome-style. Target ones that are getting rents of at least $850/unit.

However, even more so than duplexes, the North side of Killeen may become more and more appealing with higher prices. 76543 zip codes fourplexes are built in the 1980s. While surrounding fourplexes will limit how much rent you can improve into, these may nevertheless become more appealing options for renters and, consequently, investors!

Next Steps

Download the entire PDF report here!

Killeen-Temple 2-4 Family 2024 Report

I am an investor-friendly real estate agent who has personally bought and sold fourplexes in Texas, and would be thrilled to help you with your investment acquisitions and dispositions needs!