House Hack Analysis - Dickinson/ Houston/League City Texas

[Christian Villanueva]

Hey fellow BP members, I want to concentrate on analyzing house hack rental properties. I am in the Houston area and house hacking appears to be pretty hard over here. Well, irregardless Let's get to this house hack analysis, I want to be a pro at this and right now I'm a novice. I'll be pumping these analysis out pretty frequently so if you want to get better with me, then embark in this journey with me. Well, let's get to it. 

I'll be using the 4-square method and an FHA loan at 3.5% down. Below is the numbers for the house 13107 Garlenda Ln Houston, TX 77034. Built 2004 and is a 3/2 Single Family. Doesn't appear to have major defects, and I can probably rent out 2 rooms at $700 . What on this have I messed up at or what suggestions do y'all have?

[Charles Long]

@Christian Villanueva Austin makes a few good points definitely but there are some other factors that need to be considered. I am familiar with the Houston market. Lived in Clear Lake for the last 3 years. I have "house-hacked" successfully several times.

#1 the more bathrooms the better so shoot for a 4 bed 3 bath home if possible you can charge a premium for a private bath

#2 you live in one of the rooms with the shared bath and rent out the master you can charge even more for the master suite

#3 if the house is clean and in good shape vacancies will not be much of an issue, there are many, many, many people looking for flexible living situations due to work transfers, divorces, transition periods, new jobs, etc...

#4 People will pay a premium for a month-to-month lease (you can't really hold someone to a lease in this situation because of potential personality conflicts)

#5 Make it "all bills paid" including cable and internet, people will pay a premium

#6 $700/Room is not that bad, you could probably charge more if the home is nice

#7 The apartments available in that area for $700/mo are NOT NICE plus there is a 12month lease typically, plus utilities, plus they have to move their furniture in, etc....

#8 Remember, you are marketing the convenience, people will pay a premium for convenience

#9 In my experience I have never had more than a couple weeks vacancy between tenants but both my properties were nearly new, very clean and fully furnished

#10 Some clients of mine just bought a 5 bed 3.5 bath home in Clear Lake City Super Nice, upscale neighborhood, for $325k, huge house that would be perfect for a house hack.

Just some things to consider. I'm not in the area anymore but I know a great Realtor that could help you. I'll send a connection request if you're interested. Good Luck!!

#3 there are many, many, many people