Real Estate Investing Performance In Temple
|Avg Purchase Price||Avg Cap Rate||Avg Cash on Cash Return||Avg Cash Needed to close|
|Commercial 5+ units LTR||75k - 110k per door||6.5% - 8.5%||6%-9% (assumes 25% down payment)||$25,000 per door|
|Short Term Rental (SFH)||200k - 250k||9% - 10%||10% - 14%||$60,750 (furnished)|
|STR (2-4 Units)||100k - 125k per door||10% - 12%||12% - 15%||$31,000 per door (furnished)|
|Long Term Rental (2-4 Units)||100k - 125k per door||6.5% - 8%||6% - 8%||$28,250 per door|
|Long Term Rental (SFH)||175k - 225k||5% - 7%||6% - 8%||$55,000|
|Househack (2-4 Units)||100k - 150k per door||n/a||n/a||$7,000 per door|
|Househack (SFH)||225k - 275k||n/a||n/a||$12,000|
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Top tips for Investing in Temple Real Estate
In the long run, these strategies will also help you reduce the vacancies available in your lot.
Besides the medical sector, Temple also benefits from a small military presence. Many of these are officers stationed at Fort Hood who would rather reside in Belton or Temple instead of Killeen.
As you prepare to enter this market, you should note that the Temple real estate market has proven to be a slow and steady grower and calls for patience from investors. Luckily, you’re assured of long-term tenants thanks to the military and medical fraternity in the area.
Furthermore, the proximity to larger metros like Waco and Austin guarantees much-needed stability. All these factors combine to make up what we call a real estate investor’s dream come true.
Main Activities/ Attractions of the Temple Area
- Baylor Scott White Hospital System: It boasts an extensive network comprising 51 hospitals and 1,000+ patient care centers. These centers include but are not limited to regional clinics, institutes, and specialized centers. Baylor Scott and White have created a transformative model for the local healthcare industry designed to improve the coordination of help and eliminate wastage. In the long run, it also helps it to manage chronic conditions better.
- Fort Hood: Sitting on over 200,000 acres, Fort Hood is a premier installation that the army uses to train and deploy heavy forces. It’s currently the only installation in the country that can allow for the stationing and training of two armored divisions. The rolling, semi-arid terrain surrounding it allows for the training and testing of military troops and armored units.
- McLane Distribution: Headquartered in Temple, McLane Distribution is a leading supply chain service provider supplying convenience stores, chain restaurants, and convenience stores all over the country with an assortment of food and beverage products. Today, it has 80+ distribution centers in the country and manages over 50,000 consumer products.
- Temple College operates as a comprehensive community college that provides a wide range of educational opportunities. The college officially opened its doors in 1926 and, 90+ years later, continues to enjoy a strong academic reputation nationally. Its most successful programs are those in the fields of visual performance, competitive athletics, and performing arts.
- University of Mary Hardin-Baylor: The University of Mary Hardin Harbor has spent the last 177+ years equipping its students with skills that will enable them to live a purposeful life that honors God. Being the oldest university in the area still in operation today, the facility is proud of its immense history and dedication to helping learners deepen their faith.
- Central Texas College: Central Texas College is a leading institution of higher learning based in Killeen. It offers several programs, the most notable ones being Continuing Education, Skilled Trades, Health Science, and a Pathway to a 2&4 Year Degree. Students can choose from the 60+ degrees and certificates on offer.
Success stories investing in this area
“Used Victor in finding and purchasing my first investment property. Victor and his team were knowledgeable in providing help along the way especially toward the end while getting everything squared away.”
Long Term Rental
Victor was an awesome realtor! We were first time investors in Texas and he was very responsive, experienced, and pleasant. Every question we had he answered promptly and from start to finish Victor guided us thorough the whole process and made the buying transaction as smooth as possible for us! You will not be disappointed by working with Victor Steffen, thank you Victor!
Long Term Rental
Investing Strategies for Temple Area
As we mentioned earlier in the introduction, the best strategy for the Temple area is to focus on meeting the housing needs of the healthcare sector. For this, we recommend shifting your focus to mid-term furnished rentals.
Concentrate on investing in the area surrounding Baylor Scott and White Hospital.
The aforementioned area has plenty of long-term tenants interested in leasing quadplexes. Furthermore, since the onset of the COVID-19 pandemic, the community has needed additional housing due to an increase in its population size.
Many of its new residents are working families who moved from larger cities such as Dallas, Austin, College Station, and Waco in search of lower rental prices. We, therefore, strongly recommend that you invest in duplex and quadruplex properties.
You can easily furnish these properties before leasing them to the personnel employed by McLane, BSW, Fort Hood, the local universities, and the other large employers scattered around town.
Another strategy that will likely work well for you and your property is focusing on tenants about to complete their medical residencies. For this target base, go for small multis and 2-bedroom single-family homes.
Both properties will do remarkably well here if they are furnished.
Is Temple a Good Real Estate Investment?
Temple, Texas, is considered a good market for real estate investors for a number of reasons, including:
Growing Economy: Temple has a strong and growing economy, with a range of major employers in industries such as healthcare, manufacturing, and retail. This provides a stable and growing market for real estate investment. Temple is home to a range of major employers, including:
Scott & White Healthcare: Scott & White Healthcare is a healthcare provider that has been operating in Temple for over 100 years. The organization is one of the largest employers in the city, with a workforce of over 5,000 people.
McLane Company: McLane Company is a supply chain services company that has been operating in Temple for over 80 years. The company is one of the largest employers in the city, with a workforce of over 3,000 people.
Wilsonart International: Wilsonart International is a manufacturer of high-pressure decorative laminate and solid surface products. The company has been operating in Temple for over 50 years and employs over 1,000 people in the area.
Tenet Healthcare: Tenet Healthcare is a healthcare provider with a presence in Temple. The company employs over 1,000 people in the city.
Bell Helicopter: Bell Helicopter is a manufacturer of commercial and military helicopters, with a facility in Temple. The company employs over 800 people in the city.
Affordable Housing: Compared to other cities in Texas, Temple offers relatively affordable housing options, making it an attractive market for real estate investors who are looking for affordable rental properties. The housing market in Temple, Texas, has been strong in recent years, driven by factors such as the growing population, strong local economy, and low housing costs compared to other parts of the state. According to data from Zillow, the median home value in Temple is currently around $160,000, which is relatively affordable compared to other markets in Texas.
Quality of Life: Temple is known for its strong sense of community, quality of life, and safe and family-friendly neighborhoods, making it an attractive place for families and businesses. Here are some popular things to do in Temple:
Belle Starr Antiques: This historic downtown shopping district offers a variety of antiques and specialty shops, perfect for a day of shopping and browsing.
Mill Creek Park: This popular park features a walking trail, playgrounds, picnic areas, and a scenic lake.
Temple Railroad and Heritage Museum: This museum showcases the history of Temple and the surrounding area, with a focus on the role of the railroad in the region’s development.
Wildfire Golf Club: This championship golf course offers a challenging and scenic round of golf for players of all skill levels.
Stillhouse Hollow Lake: This scenic lake is a popular spot for fishing, boating, and other water-based activities.
Temple Mall: This large shopping mall offers a variety of shopping and dining options, as well as a movie theater and other entertainment options.
Convenient Location: Temple is located in central Texas, with easy access to major highways and cities such as Austin and Waco, making it a convenient location for residents and businesses.
Growing Population: The population of Temple has been growing steadily over the last decade, driven by the city’s strong economy, quality of life, and affordable housing options. This growing population provides a strong and stable demand for housing, making it a good market for real estate investment. According to data from the US Census Bureau, the population of Temple has increased steadily over the past several decades, with significant growth occurring in recent years.
Between 2010 and 2020, the population of Temple increased by more than 15%, from 66,102 to 76,534, according to the US Census Bureau. This growth is expected to continue in the coming years, driven by factors such as the strong local economy, affordable housing, and a growing population.
Is it a Good Time to Invest in Temple?
Right now is a great time to look at investing in Temple Texas real estate because there have been several exciting developments that have helped to drive growth and investment in the area. Here are a few examples:
Expansion of Healthcare Industry: Temple is home to several major healthcare facilities, including Baylor Scott & White Medical Center, which has undergone significant expansion and upgrades in recent years. This has helped to create new jobs and drive economic growth in the area.
Growing Retail and Dining Scene: Temple has seen the development of several new retail centers, restaurants, and other dining options in recent years, which has helped to create a more vibrant and dynamic community for residents and visitors.
New Residential Developments: There have been several new residential developments in Temple in recent years, including single-family homes, townhouses, and apartments. These developments have helped to meet the growing demand for housing in the area, and have helped to create new investment opportunities for real estate investors..
Best Neighbourhoods to Invest in Temple
The most popular communities for residents in Temple, Texas can vary depending on individual preferences and needs. However, some of the most sought-after communities in Temple include:
Belton Lake Estates
Belton Lake Estates is a neighborhood located near Belton Lake, offering scenic views, spacious homes, and a convenient location near amenities and attractions.
West Temple is a neighborhood located in the western part of Temple, offering a range of homes and a convenient location near amenities and attractions.
South Temple is a neighborhood located in the southern part of Temple, offering a range of homes and a convenient location near amenities and attractions.
Wildflower Country is a neighborhood located in the northern part of Temple, offering spacious homes, scenic views, and a convenient location near amenities and attractions.
The Meadows is a neighborhood located in the southern part of Temple, offering a range of homes, parks, and a convenient location near amenities and attractions.
Financing Information for Temple Real Estate Investors
If you’re looking for financing, you’ll be glad to learn that JJVM can finance owner-occupied loans for single-family or house hackers’ investments. Such a loan will attract a 20% down payment.