Killeen's rental market depends on Fort Hood, one of the largest Army installations in the country. Many investors here own fourplexes and duplexes built for military tenants, and a DSCR rate-and-term refinance can put them on long-term financing sized on the combined rent.
In short: Yes. LendingStreet refinances leased 1-8 unit rentals in Killeen with DSCR rate-and-term loans that pay off hard money, bridge or existing debt without taking cash out. Loans start at $150,000, go up to 80% LTV on some programs, and qualify on the property's rent with a 1.0x standard minimum DSCR and a 620 minimum credit score. Killeen has more small multi-unit rentals than most Texas cities, built for soldiers and families.
Killeen has more small multi-unit rentals than most Texas cities, built for soldiers and families. Investors buy or rehab them with short-term money and refinance after leasing. A rate-and-term refinance lowers or stabilizes the payment without taking cash, which matters because PCS moves and deployments make turnover part of the business. Investors with several small buildings sometimes refinance them one at a time as each short-term loan matures, while others wait and combine them. With a fourplex, the refinance also tends to lower the per-unit payment enough to absorb a month of turnover after a PCS move without dipping into reserves.
Rate-and-term means the new loan pays off the existing debt plus closing costs, with little or no cash back. You usually get a lower or fixed long-term payment, a longer term, and an end to the maturity date on a short-term note.
Investors buy in Killeen, Harker Heights, Copperas Cove, Nolanville, Belton and Temple, with fourplex clusters in several Killeen neighborhoods. Harker Heights and Salado cost more and lease to officers and civilian staff.
The stock is mostly brick and stone homes, duplexes and fourplexes built since the 1980s, many on slab foundations. Roofs, HVAC and foundation movement are common inspection items.
Killeen appraisals for fourplexes compare with other fourplexes nearby, and there are usually plenty. The appraiser will check each unit and the rent roll, and an income approach often supports value. Rent comparables near the main gates of Fort Hood are strong, and newer, well-kept units lease fastest. Harker Heights and Belton have higher values and different tax rates, so use the right figures.
Most investors leaving short-term debt choose rate-and-term, because it allows higher leverage on some programs and fewer questions about seasoning. Cash-out makes sense when you have built equity and want to fund the next deal.
Timing matters. Some programs use the purchase price plus documented improvements until the property has been owned for a set period, and others use the new appraised value sooner. Ask which applies before you start.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a brick fourplex in Killeen, appraised at $420,000, with a $305,000 balance on a short-term loan. Rent is $3,600 a month across four units. The new loan pays off the existing balance and rolls in about $6,500 of closing costs, for a loan of $311,500, or about 74% of value.
On 30-year amortization, estimated principal and interest is about $2,125 a month. Adding taxes of about $760 and insurance of about $260 brings the total to about $3,145, so the DSCR is about 1.14x against the 1.0x standard minimum. On a fourplex, the DSCR uses all four rents. One vacancy at closing can be replaced by market rent in some programs, but leased units are stronger.
| Item | Amount |
|---|---|
| Appraised value | $420,000 |
| Existing loan payoff | $305,000 |
| Closing costs rolled in | $6,500 |
| New loan amount | $311,500 (about 74% LTV) |
| Estimated principal and interest | $2,125 |
| Taxes, insurance and HOA | $1,020 |
| Total monthly payment | $3,145 |
| Monthly rent | $3,600 |
| DSCR | About 1.14x |
Texas investors pay full property taxes with no homestead exemption, and combined rates in Bell County are high relative to values. The Bell County appraisal district reappraises regularly and owners can protest.
Texas has no state transfer tax or mortgage tax. Refinance costs are mainly title, recording, appraisal and lender fees.
Central Texas sees hail and severe storms, and roof age drives premiums. Some areas near Nolan Creek and other creeks are in flood zones.
Killeen enforces property maintenance codes, and HOAs in newer areas may limit leasing. Military tenants can end leases when they receive qualifying orders, so plan reserves. Killeen fourplexes were often built in clusters, with shared driveways or common areas covered by a recorded agreement. The title company will review those agreements, and the appraiser will check that each building is on its own legal lot. If a fourplex shares utilities, confirm how the costs are split with tenants, since that affects rent and expenses.
Our investor loans are business-purpose loans on non-owner-occupied property. You will sign for the loan personally, and the credit and background review is part of the file.
If units are vacant, ask how the program treats them. Some use market rent from the appraisal; others want a signed lease before closing. Signed leases make the file cleaner.
Send us the property address, the payoff amount, the rent and the tax and insurance figures through the form below, or call (877) 298-1001. We will size the loan, show the estimated DSCR, and flag anything local that needs attention. For the statewide picture, see our Texas rate-and-term refinance page.
If your hard money or bridge loan has an extension deadline, start at least 30 to 45 days ahead. That leaves time for the appraisal, title and any repair items.
Yes. Fourplexes are residential, and the DSCR uses the combined rent of all four units.
Service members can end leases with qualifying orders. Keep reserves for turnover, especially in multi-unit properties.
Yes. We refinance 1-8 unit rentals across the Killeen-Temple area.
With five or more properties, a blanket portfolio loan can combine them into one loan with one payment.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Seasoning rules vary by program. Some allow a refinance soon after purchase if the property is leased.
Up to 80% LTV on some programs, with loans from $150,000 and no stated maximum. The rent must cover the payment at the program minimum, usually 1.0x.
The minimum is 620. Higher scores can improve terms.
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