House Hacking a New Build - Royse City, TX

[Cory Beam]

Investment Info:

Single-family residence other investment.

Purchase price: $345,000
Cash invested: $34,500

House hacking my primary residence with two additional tenants in Royse City, TX! This city alone has over 12,000 permitted residential properties yet to be built, and its population is expected to double in the next ten years.

What made you interested in investing in this type of deal?

Simplicity of execution and investing in an appreciating market

How did you find this deal and how did you negotiate it?

I used a local DFW realtor to identify the market and property. When I began looking at the property it was listed for $359K and I was able to get it for just under $345K - primarily caught the overall downtrend of the market.

How did you finance this deal?

Conventional note 10% down through builders preferred lender. Also got builder to purchase points down and I paid no closing costs

How did you add value to the deal?

Plan is to move into a new property after a year and rent this out as a single family home. I am intending to upgrade the fixtures and finishes in the bathrooms to stand out for renters in what is an all builder finishes rental market.

What was the outcome?

House hacking has been successful so far!

Lessons learned? Challenges?

Have a very detailed contract that you and your tenant execute BEFORE they ever move in! One of the folks renting from me is a close friend, but we still had different expectations as to what the experience would be like prior to getting started. Have a very honest conversation with folks who will be renting from you, and if you don't know them well thoroughly vet them.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Ak Ali (Realtor in DFW area) has a good relationships with the more local builders in the area if you are interested in going the new construction route but not with the DR Horton's/Lennar's of the world